There are many myths about the perils of accepting credit cards, especially around cost and picking the “right one”. We don’t want to jump the gun and tell you which company to go with. Instead, we want to share with you why we think taking credit cards can do wonders for business.
Credit cards are awesome for businesses because they can dramatically increase your sales. We hope this info will showcase the true value of taking plastic and help you made an informed decision on whether to credit cards or not for your business.
1. Taking credit cards helps you get paid faster
By taking credit cards, you’ll have access to your money much faster than with a cheque. Taking a cheque can mean you have to wait 30, 60 or even 90 days to receive a payment from your customers. In those cases, you’ll still need to send an invoice out, deposit the cheque once it comes and possibly wait out the bank’s holding period. Cross your fingers that cheque doesn’t bounce or isn’t fraudulent!
73% of businesses say that taking credit cards has improved their cash flow because payments are made immediately. With credit cards, you ensure you get paid on the spot as soon as the sale is made. No more waiting in bank lines or dealing with bounced cheques. Seeing your money faster means improved cash flow for your business.
2. Taking credit cards reduces your costs
It’s a common misconception that taking credit means more costs. What most businesses don’t realize is that taking cheques have costs of their own, most of which exceed the costs of taking credit. Taking credit cards can save you time and money with the reduced paperwork and hunting after those un-collectable payments.
When taking a cheque, your costs can come from:
- billing labor and invoicing
- cheque processing fees
- bank deposit fees
- NSF fees
- write-offs and collection costs
3. Taking credit cards increases your sales
Nowadays, most people don’t leave the house without at least one credit card on hand. It doesn’t matter if it’s Visa, MasterCard, Amex or Discover – it’s on their person. If you’re a cash and cheque only business, you could be loosing out on sales just because you don’t take plastic.
Did you know that 66% of in-store transactions are made with a credit card? That a lot of potential revenue you could be missing! By accepting payments by credit cards, you’re giving your customers another way to pay. This can help build your business, strengthen existing relationships and attract new customers.
Fun Fact: Customers spend more when they pay with a credit card instead of cash or cheque!
4. Taking credit cards opens you up to new payment options
By taking credit cards, you’re not just limited to what you can see using a traditional terminal. New payment options are available to you which can increase your sales even more. Studies have shown that when people are given more payment options (beyond cash), they are more likely to make a purchase, join a loyalty program, and spend more per purchase.
New Payment Solutions include:
- Recurring Billing
- eCommerce Payments
- Mobile Payments
Once you start taking credit cards, the sky is the limit with what you can do.