Whether you own a small business or manage a large distribution center, accepting credit cards can benefit your business substantially, not only by boosting your sales but also by alleviating your workload. If you haven’t already begun to accept credit cards at your business, you may be inhibiting your company’s potential for growth. Listed below are just a few of the reasons credit card acceptance is vital for any business:
1. Boost sales and increase average ticket size
Studies show that consumers tend to spend more with credit cards than they do with cash. When a customer pays with cash, he has to forfeit something tangible; paying with a credit card reduces the mental burden of payment because the customer doesn’t physically part with any of his money. This sense of greater financial freedom, however misguided, contributes to larger average tickets and greater sales overall.
2. Business owners can save money by accepting credit cards
Contrary to popular belief, accepting credit cards can actually save your business money. Some merchants reason that the per-transaction cost of accepting cards for payment isn’t worth paying; however, that cost is quite often offset by increased revenue. By accepting credit cards, you open your business to increased sales since consumers tend to spend more with credit cards than they would with cash. As well, you will probably garner more sales from the population of cardholders who prefer to use credit cards for any number of reasons.
3. Consumers demand that businesses accept cards
There are plenty of reasons why consumers would prefer to pay with credit over cash. Credit cards are convenient and often rewarding, as many creditors offer gifts such as cash-back deals or airfare as incentives for making payments with their cards. These incentives have driven up the demand for credit card acceptance substantially on a general level. If your customer wants to pay with plastic, but you don’t accept credit cards for payment, your customer may very well give his business to a vendor that will do so.
4. Speed up receivables and get immediate cash flow
Business owners who rely on payment terms such as net 30/60 can speed up receivables by accepting credit cards. Credit cards allow your customers to completely pay off invoices so that there is no lingering debt between you and your consumer; instead, the consumer pays the credit card company or bank. Credit card acceptance therefore not only speeds up receivables, but also provides immediate cash flow that can be used to maintain the health of your business.
5. Integrated payment solutions streamline a normally tedious procedure
Some merchant service providers offer integrated payment solutions – credit card processing services integrated into accounting software. This means that you can process payments directly inside of your accounting system, and your system automatically applies those payments to your invoices. This completely eliminates the traditional double entry routine of processing transactions and manually marking invoices as paid, manually balancing your general ledger, and manually updating your inventory.
6. Easily service repeat customers with an integration or virtual gateway
Unlike cash and checks, accepting credit cards gives merchants the option to conveniently service repeat customers, either with a direct accounting system integration or a virtual gateway. In both cases, you can use your system or gateway to securely store, recall, and manage data for repeat customers.
7. Schedule future/recurring charges, and guarantee that you will be paid on a given date
Most accounting systems or virtual gateways also allow users to schedule recurring charges (e.g. for monthly subscriptions or recurring parts deliveries). This can save valuable time spent on labor and ultimately save your company a good deal of money.
This blog was brought to you by Janice Lee. Janice is a PR/communication specialist at Century Business Solutions. Century Business provides cutting-edge payment processing technologies that saves merchants time and money. Century Business Solutions is a registered ISO/MSP of Wells Fargo Bank, and is also a First Data partner.