While cattle was once an acceptable form of currency, the payments landscape has changed. Paying by credit card is becoming increasingly popular due to the convenience and speed it provides. These days, few people carry cash or cheques around on a daily basis, so by not accepting credit cards, you may be holding your business back.
There are enticing incentives for a consumer to sign up for a credit card — travel points, rewards, cash back, etc. How this affects your business is that more and more consumers now prefer to pay with credit cards. When you only accept cash or cheque, you are throwing away potential sales.
There are fees involved when you accept credit card payments, but those are outweighed by the benefits such as increased sales and enhanced customer service. Below are top 10 reasons why you need to accept credit cards now.
1. Improved cash flow
You get paid faster because you don’t waste time sending invoices, tracking down NSF cheques, and waiting for cheques to clear (which can take up to 90 days). When you accept credit cards, funds are deposited within 48 hours.
2. Reduced costs
Operational and billing overhead such as paper, printer, and postage use is reduced when you don’t have to send out invoices.
3. Increased sales
Customers are more inclined to spend larger amounts and buy impulsively with credit cards not only because it’s faster, but the psychological pain of paying is lessened because swiping a credit card is more abstract than handing over physical cash. Consumers these days also prefer to pay with credit or debit cards so if you’re still a cash-only business, you might be losing sales.
4. Improved productivity
Processing cheques not only requires more money but also more time. Precious time better spent on other tasks is often wasted with trips to the bank and managing account receivables. When you accept credit cards, the process becomes automated.
5. More sales opportunities
With credit cards, you are no longer confined to store hours or a brick-and-mortar location. You will never have to miss a sale because you can accept payments anywhere, anytime on mobile. You also have additional ways to accept credit card payments: online, recurring billing, and invoicing.
6. Better customer service
Customers appreciate the speed, flexibility, and accessibility that comes with paying by credit card. Consumers will actively seek out businesses that accept credit cards because they want the incentives that come with using them and the convenience and speed it provides.
7. Increased authenticity
Credit cards lend you a certain level of credibility. When you display which credit cards you accept, you become associated with those recognizable and reputable banks in the minds of consumers.
8. Expanded customer base
eCommerce stores are beneficial as you are able to sell to customers globally. But to have an online store, you need to accept credit cards. In addition to expanding worldwide, your potential customer base is widened to everyone with a credit card.
9. Levelled playing field
If your business is not accepting credit cards, customers will not hesitate to go to your competitors who are. By not accepting this payment method, you are putting yourself at a disadvantage.
10. Easy implementation
Cheques are becoming antiquated and outdated. The payments industry is moving towards a cashless environment. Your business can’t afford to ignore these changes. Accepting credit cards eliminates friction and provides your business endless opportunities.