This post is a companion piece to Top 10 Reasons to Accept Credit Cards, which lists the benefits of accepting credit cards, such as improved productivity and reduced costs. However, beyond those individual reasons, accepting credit card payments can also help merchants with the bigger picture. Here are three ways credit cards enable you to grow your business.
1. Recurring billing
Recurring billing allows you to set up repeating payments. This payment structure is used for subscription or monthly services and even donations. Recurring billing is easy, flexible, and best of all, automatic, so you can focus on other aspects of your business. Manual data entry errors decrease because you input the credit card information once, then subscribe customers to a plan for subsequent payments. Recurring billing ensures that there is a steady and reliable flow of revenue. There are two things you can do to maintain this continuous flow:
– send out emails about upcoming credit card expirations to avoid credit card declines
– send out reminders of upcoming subscription renewals to reduce churn
Accepting credit cards gives you instant analytics on customer and transaction data to help you make better business decisions, and with recurring billing, you’re able to forecast payments and predict future revenue.
2. eCommerce
Not only does eCommerce mean expanding your customer pool to credit cardholders worldwide, but an online store is essential these days because customers are researching, reviewing, and buying along multiple channels (in-store, online, on mobile) and expect a holistic experience. An eCommerce store helps you complete the circle and provide an omnichannel experience.
Since online stores are not restricted to the set store hours that brick-and-mortar stores are, your business hours are 24/7. Being able to shop online enhances customer experience; consumers are able to browse at their leisure and convenience while avoiding long line ups.
The eCommerce platform provides the perfect opportunity for you to personalize the shopping experience. When customers sign into an account and shop, precious data such as preferences and transaction histories is collected. An online store also gives you the ability to boost your brand awareness because you can utilize SEO tactics to make sure your site is getting seen by the right audience.
3. Mobile payments
With mobile payments, you are able to be mobile and can take your business to your customers. This is especially convenient if you’re a seasonal or an online-exclusive business since you can utilize mobile payments for pop-up shops, conventions, or trade shows to connect and interact with potential customers. Of course, you can accept cash or cheque at any of those events, but with credit cards, payments are processed immediately, and you’re saved a trip to the bank.
In addition, a credit card payment is either approved or declined right away, so you don’t waste time chasing down NSF cheques. Mobile payments have benefits in-store as well; when salespeople have the ability to take credit cards on a mobile device, you reduce the time consumers spend waiting in pesky line ups.
Credit cards enable you to better predict future revenue and increase cash flow with recurring billing, expand your customer base and personalize the consumer experience with eCommerce, and finally, interact with customers in the field and reduce waiting times with mobile payments. Accepting credit card payments equips you with the tools you need to grow your business bigger and better.