Your Business Doesn’t Accept Credit Cards, Seriously?
Sometimes we can get caught in own bubble and think every business is already taking mobile payments. Suprisingly many companies still don’t even take credit cards. Yet, you’re never too small to accept credit card payments, from handmade craft shops to food vendors and service providers. Even if your business is only a few months old, accepting credit card payments can boost your sales, add legitimacy to your business, and make your profits easier to track. Here are just a few perks of switching to this payment method.
1. You Are Already Losing Sales if You Don’t
American society is moving away from cash and becoming more reliant on credit cards. In fact, 51 percent of millennials say they would pay for something that cost less than $5 with a credit or debit card instead of with cash. If you think your price point is too low for credit, or you don’t think customers will want to go through the whole transaction process, think again. The younger your customers are, the more likely they are to walk away and decide against buying from you if you can’t process card payments.
2. People Spend More With Credit Cards
Studies have found that McDonald’s customers spend an average of $7 when they pay with a credit card, but only $4.50 when they pay by cash. Other retailers have seen similar behavior, and it is commonly accepted among economists that customers spend more because they don’t feel like it costs as much. If you run a business where it’s easy to find little add-ons or impulse buys, then you could find your average ticket increasing because you accept plastic.
3. Credit Cards Add Legitimacy to Your Business
Every purchase requires a risk/benefit analysis in the eyes of the consumer, and there are various ways businesses can lower the potential risks that customers face when buying their products. In the online world, this means adding several photos and customer reviews, and in the physical world it means word-of-mouth marketing and smart business practices. Accepting credit cards lets your customers know that you’re a professional, well-established business that they can trust, thus lowering the potential risk.
4. Accepting Credit Cards Is Easier Than Ever
Historically, small businesses and startups struggled to find companies to process orders therefore they went several months before they could accept credit cards. This is because younger and smaller businesses are considered high-risk merchant accounts that could experience higher levels of fraud.
However, the rise of credit card use and the startup community have made credit companies more likely to accept small businesses and work with them to be safe. As you start looking to accept credit cards, talk to different processing companies about specific plans and packages they have that are tailored to small businesses. This will make sure you get the support you need without the frustration.
Accepting credit cards is a major milestone in the lifespan of many companies, and you could see a boost in sales during the first few months that you take them. In the long run, you will be able to acquire more customers and bring back the regulars that enjoyed your items or services when you first started.