One of many things you need to consider as a small business owner is which payment options to offer your customers. Paying via a credit or debit card has quickly become the most popular method of payment around the globe. Despite this fact, many small business owners refuse to accept credit cards, because they think there are costly fees that will only drain their potential profits.
This is a common misconception that could be costing you sales and hurting your bottom line more than any fee ever could. Apart from opening new sales avenues for your businesses, here are the top five reasons that you as a small business should consider accepting credit cards.
- Credit cards encourage buying: Shoppers feel in control when they use credit and debit cards. Some studies even indicate that customers spend more when they’re paying with plastic instead of cash, most likely due to the credit line their card provides.
- Accepting credit cards can improve cash flow: Credit card transactions are processed and settled quickly, meaning no more waiting for checks to clear and no more waiting to collect from your customers.
- Accepting credit cards eliminates the risk of accepting a bad check: A bounced check can be costly. Not only does it take a chunk out of your profit, it also costs you time trying to track down the customer to collect a payment. With credit cards, transactions are screened as they are processed to reduce the risk of fraud.
- Debit and credit cards are convenient for shoppers: Let’s face it, the days where people carried a significant amount of cash around them are over. Customers are carrying plastic and are specifically looking for businesses who will accept their cards. Also, with credit card companies offering cards that earn points, mileage and other rewards, more and more people are opting to pay for products with their credit cards. Keep competitive by accepting credit as well as debit.
- Accepting credit cards is relatively inexpensive: Credit and debit card processing is a highly-competitive industry, meaning you’ll likely find a merchant services package that suits your budget. Many business owners discover that the increase in sales generated by credit cards more than covers the costs involved.
In order to start accepting card-based transactions, you first need to open a merchant account with a qualified electronic transaction processer. Payscout can be there to help you every step of the way and answer any questions you might have about how to use credit cards to expand your business. Check out our website for more information or contact one of our customer service specialists at 888-689-6088 today!