Benefits for small businesses accepting credit cards

Benefits for small businesses accepting credit cards

Accepting credit cards is essential for small businesses that want to increase their revenue, satisfy their customers and keep their bottom line in line. Arranging to accept credit cards at your small store or e-commerce site makes good business sense. The amount of money it takes to accept credit cards will be quickly recouped by increased sales. Everything else being equal, a consumer will choose the small business that can accept credit cards online or in the store over those that do not.

Benefits

There are many benefits to being able to accept credit cards. These include the ability to:

• Encourage spending. Your customers are encouraged to spend more money than they have access to when they know your business can accept credit cards, according to a study appearing in the September 2008 issue of the Journal of Experimental Psychology: Applied.
• Triple your sales. Businesses that accept credit cards sell more per customer than those accepting only cash and checks. The average order with credit card processing triples, according to PricewaterhouseCoopers.
• Increase customer satisfaction. The ability to accept credit cards online or in store makes customers happy because it is convenient for them.
• Build business trust and credibility. Credit card holders are offered certain protections on their purchases, as well as on their accounts. When you accept credit cards, your business' credibility increases.
• Reduce bad check costs. In 1999, U.S. consumers were responsible for writing 1.2 million bad checks per day, according to research group Nielsen. When you accept credit cards, you are more likely to receive payment.
• Grow your business. When you accept credit cards, your sales and profit increase. With an improved cash flow, there is more money available to grow your business.
• Better bookkeeping. Closing out a credit card batch at the end of the day or a shift gives you an additional method of verifying sales transactions. Business owners can more easily reconcile mis-keyed sales amounts, charge-backs or other discrepancies.
• Increase phone orders. Even if you are set up to accept credit cards online, some customers may prefer to phone in an order.
• Go mobile. Wireless credit card processing enables businesses to make sales at trade shows, festivals and sporting events

Published: May 20,2023