Accepting Credit Cards – Amazing Benefits For Your Business
The benefits of accepting credit cards for your business can be game changing. Customers across the demographic range use credit or debit cards for a majority of purchases because of convenience and the wide acceptance of credit card transactions.
If your business currently allows only for cash transactions, with confidence the data clearly shows that you are missing out on potential sales.
The following is a brief guide to the benefits you can expect by adding credit card acceptance to your sales system.
From The Merchants Perspective
- Customer satisfaction. Customers simply expect modern businesses to provide means to allow for credit card acceptance. The processing provides a hassle free, fast way of payment. Customer satisfaction surveys have been shown to be directly impacted by the ease and simplicity of your sales funnel and payment acceptance methods.
- Psychological needs. Data shows that customers are more inclined to resort to impulse buying when paying with plastic. When the impulse is experienced, knowing that the credit card can make the purchase possible lowers the resistance to making quick judgement purchases. Paying with cash, literally handing over the bills has been linked in brain scans to cause pain impulses that paying by credit card does not cause.
- Increase sales potential. If your potential customer is forced to withdraw cash instead of using a card as payment will cause you to lose sales. While your lead is getting money, they have time to reconsider your offer, be approached by competitors, and simply forget about their urgent need for your service or product.
- Cash flow management. The time it takes for a credit card payment to be processed and funded is faster than with checks, meaning that the funds are more quickly accounted for and available for your business.
- Security. Having low cash amounts in your business store makes for a less tempting target for theft.
- Convenience. Credit cards can be used globally, opening up market transaction potential otherwise unavailable to your business.
- Validation for funds and security. For merchants, you are able to to validate that the card is open and active, if it has been reported lost or stolen, if fraud has been reported, and you are able to ascertain that the balance is available on the card to pay for the purchase.
- Access. For online merchants credit card payments means sales. Instant access to a global market for your business.
From The Customer Perspective
- Security. Unfortunately, mugging, robbery and theft happens. Unlike cash, credit cards can be cancelled and theft insurance can often see reimbursement for any fraudulent purchases made by the thief.
- Convenience. A customer may shop online, in-store, or anywhere. Being able to take credit card payments saves time, allows for big purcahses, and avoids the inconvenience of writing a check. For products only available online, a credit card may be on of your only options.
- Borrowing. Credit cards act as credit lines, allowing customers to borrow when necessary to make purchases they otherwise could not.
If you are a merchant it is important to consider:
- The payment channels may not be secure enough to protect customer card information. Credit card numbers can easily be determined but the three-digit code (CVV) that goes with the card can help prevent fraud. This especially happens for online-based purchases. Embedding internet security on your website through Secure Socket Layers (SSL) is a must to protect your customers information privacy.
- When considering fraud prevention businesses must be aware of merchant liability as well. When measures undertaken are proven to be ineffective in countering fraud, merchants assume the responsibility of monetary compensation and all that goes with it. Consult your recommended credit card processing company about what their policy is regarding merchant liability.
- Because credit card payments mean immediate deductions from the available balance on the customer side, the ability to provide order status is important. There is a valid expectation that accepting credit card payments translates into a need to provide enhanced customer support. Not having such support systems can mean customer dissatisfaction and high chargeback rates / refund requests..
- Costs are involved in accepting credit card payments. Interchange fees and discount fees per transaction processed and sales volume minimum requirements are just some of the costs that you should be aware of.
- Training needs to be given to the staff who will take care of credit card payments. This may not even be a disadvantagewith a good competent team, but it should be considered before you begin accepting credit cards for your business.
To begin accepting credit cards for payment you must start by opening a merchant account or partnering with a payment processor company, purchasing and installing credit card payment equipment, and integrating it with your current payment systems.
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