If you’re a merchant, regardless of how small or big your business is, accepting credit cards is essential for your success. Today, there are 609.8 million cards held by consumers in the United States and each average consumer has 2.7 cards (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010). With these statistics, the real question is… why shouldn’t you accept credit cards?
According to the 2010 U.S. Census Bureau, there is an anticipated increase in credit card purchase volume. That means, if your business doesn’t accept credit cards, your not catering to your customer’s needs, therefore losing potential sales. In order to ensure your business’ future growth, you must be properly informed of the many benefits there are to accepting credit cards.
Convenience is the number one reason why customers use credit cards. Customers want a fast, secure and hassle free way to pay for their purchases. By offering the option to pay by credit card, you are not only improving relationships with customers, but creating loyal customers who will continue to use your business. But this option is not only fast for the customer. By accepting credit card payments, you can receive payments right away, improving cash flow for your business.
Today, customers expect the availability to use their cards for a variety of products and services, each day and anywhere they go. Competition is an unavoidable reality all businesses face. In order to stand out amongst your competition, you should offer a variety of payment options suited to your business type.
For a customer to make a purchase with their personal credit or debit card, they have to trust their merchant. With that being said, it is important for merchant’s to find the best merchant account suited for them. Providing the option to accept credit transactions gives merchants more opportunity to build trustworthy relationships with consumers and ultimately creating more loyal customers.
Although giving customers the option to accept credit cards may seem expensive, the cost of accepting does not nearly compare to the increased revenue you will generate. The ability to accept credit cards is the most affordable way to expand your customer base and increase profits. This is mainly due to the fact that people simply do not carry around cash as much anymore. It is more comfortable to carry around a plastic card verse a large sum of cash in your wallet. Accepting cards as payment, also reduces errors in cash collection and lowers the risk of default.
Limiting your customers to specific payment options can be detrimental to your business. When customers have the ability to choose their payment option, this creates a more confident shopping experience for them. By accepting, the customer can make purchases they need without having the available cash on hand.
In addition, accepting various types of credit cards allow your customers to use a rewards card. In fact, about 60 percent of consumers have a rewards card. (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010). Giving your customers the option to use a rewards card can increase their shopping frequency, and therefore you gain business!