It is often said in business that cash is king, but the reality is that this is not always the case. If your business does not accept credit cards, you could be losing a lot of sales. Accepting credit cards has now become a necessity for businesses in all industries. It is now even incumbent upon small businesses to make credit card transactions available to their customers.
Most consumers today carry one if not multiple credit cards. Over the last several years, credit card purchases have been expanding each year. Furthermore, debit card purchases are growing at a rate even faster than credit card purchases. Along with missing out on planned purchases, you could also be missing out on impulse buys by consumers if you do not accept credit cards.
In order to understand why it is so vital that your business accept credit cards, it is important to understand why most consumers use credit cards.
The reasons for using credit cards may vary, but often include:
- Do not wish to carry cash
- Wish to save cash on hand
- Desire to gain loyalty points
- Making a large purchase
- Making reimbursable purchases
If your business does not already accept credit cards, the reality is that you are likely missing out on sales because of the above reasons. By implementing a POS system into your business that will allow you to accept credit cards, you may be able to realize a tremendous boost to your revenues. The last thing you want to have happen is for your customer to turn to your competitor because it does accept credit cards.
Benefit From Larger Transactions
Along with simply being able to avoid missed sales because you do not accept credit cards, you may also be able to benefit from larger transactions. This is because many people tend to spend more money when paying with credit cards. Handing over plastic rather than a check or cash is less painful, so consumers tend to spend more. Credit cards also help to increase impulse purchases, since consumers are not tied to whatever amount of money they have in their wallet at the moment.
Better Your Customer Service
Accepting credit cards is also good customer service. No longer is it a courtesy to offer credit card payments. Today it is more of an expectation. If you accept credit cards as a form of payment, customers are more likely to patronize your business, because it provides them with more flexibility and convenience. This is particularly true when it comes to large ticket items.
Expand Customer Base & Improve Your Brand
Accepting credit cards can also help you to expand your customer base. Credit cards are considered a form of global currency. This makes it much easier to sell on an international basis. If you operate online, the entire world can be your marketplace. Accepting credit cards ensures you have no limitations. You may also find that accepting credit cards can help to improve your business’ image and offer you enhanced credibility. When a customer sees that you accept credit cards, it means that your business is more established and trustworthy.
Increase Cash Flow
Additionally, credit card payments help you to increase your cash flow, because you do not have to wait weeks for a check to clear. If you operate a business in which you send out invoices, you do not have to wait weeks or months to receive a payment after sending out the invoice. Instead, funds can be deposited directly and automatically to your bank, typically within just a few days. This gives you a much faster payment cycle while improving your business’ cash flow.
Keep in mind that ultimately, in the world of business, time is money, as well. Credit card payments are less time consuming and more efficient. Since the payment process is automated, you make fewer trips to the bank and do not have to print invoices or deal with bounced checks. The more time that you are able to save, the more time you are able to dedicate to the important areas of your business.
In the past, many business owners, especially startups and small business owners, often steered away from accepting credit cards, because they thought they could not receive approval for a merchant account. Today, it is much easier to accept credit cards, and a good POS system can help you to accept credit cards easily and quickly.
This article originally appeared here: Why Accepting Credit Cards Increases Your Sales