Why should credit cards be accepted as a payment method?
If you are going through the process of setting up your own business there are probably a million things on your to-do list. Finding your own niche, the potential for building a customer base, and how to distribute and deliver your goods and services will be taking up a lot of your preparation time.
You will, of course, be planning on making money from your business. Even if you are doing something that you love, your ultimate aim will be to be able to live off that enjoyment. So planning on how you will make that money – and how you will receive the payments – should be on your mind too.
Even if you are planning to have a physical, bricks-and-mortar shop, you will still probably be conducting business online as well. Cash payments are not even as common for face-to-face transactions these days, so accepting debit and credit cards needs to be part of your plan. There are fees involved here but everyone does business this way these days. If MasterCard betting sites can take payments by card, so can you. But what are the advantages of credit card payments?
What is Needed?
Before we look at the reasons why you should accept credit cards for your business – online or offline – let’s just quickly go through what you will need. The good news is that it is very easy to sort out card payments, so you can easily tick this task off your long list of things to do.
If you are solely online, you won’t even need any equipment. Just a communications connection will do the trick, either a phone line or internet line is fine. If you will also be taking physical transactions, you will need point-of-sale (POS) equipment. These are relatively cheap, although you will pay a set-up charge as well.
Now, let’s look at the reasons why you should start accepting credit cards as a payment method for your businesses
Why should credit cards be accepted as a payment method for your businesses
1. To Increase Your Revenue
So, let’s get on with why you want to be taking credit card payments in the first place. The major reason should be that it will increase your revenue. In most countries around the world, a proportion of payments are made using cards. If you do not accept this option, you will be missing out on potential sales.
Many customers will not even shop at an online store that does not offer the added security of a credit card payment option. It has been shown that businesses will tend to experience about 20% more in sales if their customers are able to pay with a credit card. So, if you want more money, credit cards seem to be the way to go.
2. Easy to Get a Merchant Account
We have already mentioned how simple it is to start accepting credit card payments as a business. The small outlay for equipment is well worth the increased sales and revenue it will bring in. You will also need to apply to be able to hold a merchant account – but that is very straightforward too.
It depends on which country your business is located in as to the exact details. But, as part of your set-up plan, you should be getting in touch with local and national organizations to establish your business. You will need to provide details of how you are going to take payments – and getting a merchant account will be part of the process.
3. Convenience for Customers
Most of us now live in an online, immediate world. We expect goods and services to be provided quickly and with the minimum of fuss. We don’t expect to have to carry cash or checkbooks in order to pay for items. Many of us don’t even want to leave the house to buy what we need.
If you are not planning to accept credit cards as a payment method, for whatever reason, you will be inconveniencing potential customers. In fact, those potential customers are probably already transforming into lost customers, as they will go elsewhere to buy what they want more conveniently.
4. Build Trust
It will not have escaped your attention that there are plenty of online scammers out there, looking to con unwitting people out of their money. Without a face-to-face meeting, it is much easier to act criminally online.
But by accepting credit card payments, your business is telling your customers that you are a brand to be trusted. There are so many payment regulations attached to credit cards that the public sees it as a trusted way of purchasing goods and services online.
5. Faster Processing and Reduced Risk
As all credit card payments are processed online, they will be completed faster than traditional methods. This is good news for your business, as the money will enter your business account more quickly and provide you with an increased cash flow. You will literally be able to get at your profits much quicker than before.
There is also less risk in conducting business online in this manner. Bookkeeping can become almost automatic, as you just need to pull the records from your credit card receipts. There is more of a fallback, for you and your customers, this way – giving you peace of mind in the process.
A Word of Caution
We have given you plenty of reasons why you should accept credit card payments for your business. But you should know that there are some negatives attached as well. Processing fees are the main problem – and you will need to factor these in when you make forecasts and budgets for your business.
There is also the potential for fraud and also technical issues. But as these would both have to be considerations if you were not to accept credit card payments, we think they are just something that you will have to live with. By refusing credit card payments, you are going to be missing out on much more – and you may find that your business is unable to grow and be successful in the long run.