Benefits of Accepting Credit Card Payments by Small Businesses
The definition of a small business can vary. Small business can be defined by how many employees are working for them, how much their annual revenue is or where the business is based. You can even consider a small business a single person working in a shop at home. In this present age, consumers want to be sure about the companies that they patronize and so it becomes necessary for small businesses to be able to attract these consumers to make their businesses legitimate in the eyes of these people. One way to do that nowadays is accepting credit cards. This can invite a cardholder to your business and it also creates a sense of trust in your business. If they can trust the credit card brand enough to carry them in their wallets, this same trust is transferred to the merchant who accept them, and when they trust you, they are likely to buy from you.
When you also take your business from a cash-only operation to one that accepts credit and debit cards, your potential customer base would easily broaden because your will be including those customers who find it more convenient to pay in credit. If your customer base expands then this is a great potential of increasing your sales. Accepting credit card payments will also place you on the same playing field with the others in the industry aside from merely expanding your customer base.
It is no secret that purchasing goods and paying them in installments is better than saving money until you can afford to buy the item in cash. When people pay with plastic instead of cash, it has been shown that customers tend to spend more. So credit cards encourage buying in general and impulse buying in particular.
Because credit card transactions are processed electronically and settled quickly, with proceeds typically deposited into your bank account by your processor within a couple of days, this would mean no more going to the bank to deposit the check and then waiting for checks to clear, no more billing and waiting to collect from your customers, and less cash to handle. One other thing it eliminates is receiving bad checks from customers as payment. And because it is electronically transacted you can even let your customers buy your product online.
It is good to remember that shoppers choose the most convenient and beneficial payment to them. You need to provide the preferred method of payment of customers so that you don’t lose them. Besides, credit card processing is a highly competitive industry today, you can find a merchant service package that suits your budget.