7 Reasons Why Your Business Should Accept Credit Cards

why businesses should accept credit cards pay debit card payments

The average American holds multiple credit cards. In fact, he or she has more than 3 credit cards. When it comes to online purchases, Americans still favor credit cards.   

In a survey, 48% of Americans said they prefer credit cards over PayPal or debit cards when it comes to shopping. As a business, you should accept credit cards to take advantage of the high volume.  

By doing so, not only do you get to attract new customers but you also increase revenue in your business. 

Want to know more benefits of accepting credit cards?   

Read on and learn the top 7 reasons why your business should accept credit cards.

1. Simplifies Tracking and Bookkeeping

In bookkeeping, human error is costly. In fact, it has the potential to cost your business a lot of money. To prevent this, accept credit cards.   

By doing so, you get to simplify tracking and bookkeeping. How? First, none of your employees will mishandle cash because you will not be accepting cash. As such, you get to reduce errors.   

Since credit card processing occurs online, your employees can track transactions very easily. Let’s assume you have a shopping cart. If a customer shops and pays but no delivery of goods, your employees can track the transaction.   

Also, you don’t have to deal with bounced checks.

2. Cut Costs

As a business owner, if you want to process credit cards, you have to pay the credit card processing fee. Most people imagine that paying these charges is expensive. Well, it's not. 

A vast majority of credit card providers will offer a 0.20% + $0.10 as a credit card processing fee. Others will offer 2.9%+$0.30. What you need to know is that the difference in charges refers to the processor’s markup.   

The estimated cost of processing 20,000 checks in a day is $1,000. In a month, the business will pay $30,000 and, in a year, $360,000. This is expensive.    

When you compare checks and credit cards, cost of processing for credit cards is modest. That means when you accept credit cards, you will cut costs and save.

3. Mitigate Risks

Not accepting credit cards means you are accepting other payment methods such as cash and checks. Handling cash is very risky. How? 

For starters, you have the risk of theft. Robbers can walk into your store, threaten your employees at gunpoint and walk away with the money. Another risk is counterfeit.   

It is very easy for someone to slip counterfeit notes between genuine notes. If you are not keen, you will end up parting with an expensive product for a few bucks. Another issue is the change-making error.   

It is very easy to make errors when giving out the change to customers. For instance, you may end up giving the customer more money than he gave you. This is a loss to your business.   

Want to mitigate these risks? Accept credit cards today!

Learn more about an intelligent payment solution that fulfills your merchant processing needs.

4. Improves Cash Flow

Keeping your cash at the bank helps you to match your income. Also, it ensures you have a record of your revenue. When you keep large amounts of cash in your retail business, you run the risk of someone stealing it.   

Also, in case of a fire, you may end up losing all your cash. When you add credit cards as part of your payment system, you don’t have to leave your business to deposit the cash. The system will deposit the funds in your bank account automatically.   

Here is how it works. Your customer will shop from your website and pay with a credit card. Your payment gateway will capture the details and forward them to the credit card processor.   

If the transaction is ok, the funds are deposited in your bank account.   

This means you will get to save time. How? You don’t have to wait for a check to clear. Remember, if you are selling your products online and you don’t accept credit cards, you are missing out on a lot.

5. Convenient

Shopping with a credit card is convenient for your customers. How? You have the top three credit card associations. They include Visa, MasterCard, and American Express.  

These are the institutions that set the rules. If you accept any one of the credit cards above, customers can shop from your store. All they have to do is swipe or use a payment gateway like a shopping cart.   

Apart from convenience, using credit cards allows customers to earn reward points. For instance, they can earn cash back, airline miles and merchandise points. Customers are more likely to shop again at a store that accepts credit cards and rewards them.

6. Service Repeat Customers

Accepting credit cards allows you to service repeat customers. Today, businesses can invest in a secure online shopping cart. The software displays products, accepts and processes credit card payments.   

Such programs also allow customers to set up future payments, and recurring charges. By doing so, it saves your company money and time. Thanks to the scheduling of future payments, the business receives money every month.   

Let's assume your company offers cloud storage services at a certain fee. Your customers can set up future payments and cut the need for subscribing every now and then.

7. Your Competitors Are Already Doing It

As a business, you have competitors. To stay ahead of your competition, start accepting credit cards. Why? They are already doing it.   

Failing to do so means, customers will opt to shop from your competitors. This saves them (customers) a trip to the ATM as your business accepts cash or check only. Accepting credit cards demonstrates to your customers that your business is legitimate. 

By displaying the logos on your shopping cart or business, it instills a sense of trust in your customers. This will make them happy when buying from you.

Accept Credit Cards and Increase Your Sales and Revenue

There are more benefits to why you should accept credit cards for payments. For starters, it grabs the attention of impulse buyers leading to larger purchases. It is quick and easy to set up.  

Also, it allows your customers to completely pay off their invoices. This puts more money in your bank account. 

Loved our post on the top 7 reasons why your business should accept credit cards? Check out our other articles on payments and credit cards to stay informed.

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