Haven’t joined the thousands of businesses which are currently accepting credit cards? These days, about half of the nation’s small businesses take credit card payments, and about a third of all sales are completed on plastic.
But there’s a reason why businesses jump on the credit card bandwagon: because doing so benefits companies in myriad ways. Here are eight of the most common.
1) More revenue - Customers who prefer credit cards will patronize your business. Due to fears of becoming a crime victim, many people don’t carry much (or any) cash with them these days. Plus, credit card purchases tend to be larger than those made with other forms of payment.
2) Reduced accounts receivables - When you have to invoice a customer and wait for a check, that’s money that is owed to you that cannot be used. Credit card payments are usually deposited into your account within a day or two.
3) Reduced check fraud - The more customers that pay with credit cards, the fewer transactions that will be paid for by check — which means a reduced chance of check fraud. Anyone who has suffered losses after accepting a bad check can tell you what a hassle that can be.
4) Increased attractiveness to reward seekers – Numerous credit cards now offer rewards or cash back to their cardholders. This often encourages consumers to make purchases with credit cards so they can redeem their rewards for cash or gifts. And they might as well buy from you, right?
5) Increased impulse buying - When customers see something they like, they’re much more likely to buy it if they aren’t worried about how much cash they have in their wallet or purse. Credit cards give them this freedom to make more impulse purchases.
6) Improved bookkeeping - Every credit card transaction is documented, and mobile payments software gives you a detailed record of every charge made. This can really help your accounting, and even allow you to spot purchasing trends with minimal effort.
7) Business expandability - When you are accepting credit card payments, it’s much easier to create a web site and start selling products or services via online, email, or phone orders. Furthermore, it also gives you the ability to begin taking mobile payments as well.
8) Improved security - Sure, credit card transactions come with their own layers of security. But more credit card purchases means less cash on hand in your register — or sitting in a bag that’s headed for the bank to be deposited. As a result, you are less of a target for thieves or robbers.