Top Reasons to Accept Credit Cards for Your Small Business
Credit cards have transformed into one of the most common methods for consumers to pay, with almost 60% of U.S. consumers employing cards over cash. Even though some businesses may extend credit to customers be means of invoices and personal checks, most retailers and other merchants typically extend credit through card payments.
Nonetheless, despite the universal use of plastic over cash, a study has shown that more than half of U.S. small businesses –about 55%– do not accept credit cards. If you are a small business owner, here are some of the ways that processing credit card payments can stand to benefit your company.
Legitimize Your Business
By showcasing the logos of the credit cards you can process at your cash register or on your website, you acquire the cardholder’s interest and stimulate in them a sense of trust in your business. They trust the credit card brands sufficiently to have them in their wallets, and that trust continues to the merchants who accept them. Trusting your company denotes that they are more likely to buy from you.
Improve Cash Flow
Electronic transaction processing can help catalyze the credit card payment procedure. Rather than waiting for checks to clear, or 30, 60, or even 90 days for invoices to be paid, funds coming about through credit and debit card transactions are deposited directly into your bank account, generally within 48 hours. Electronic payments certainly enable faster payment cycles, which results in improved cash flow and decreased billing overhead – a vital advantage and welcomed relief for any small business.
Executing PCI compliant credit card processing features that possess security features may be more expensive upfront, but in the long run, these features enable merchants to save a huge amount of money. Compromised customer data not only leads to distressing loss on the consumers’ end, but merchants also are required to pay substantial fines. Adhering to PCI DSS standards helps keep both merchants and customers safe from fraud.
Transactions are faster especially if your e-Commerce shopping cart is supplied with a ‘One-Click Buy’ function. This implies that not only you will save time; your customers will be able to fill one form upon registration and then start purchasing instantly by clicking the “Buy Me” option on your website without the hassle of re-filling credit card information forms. Visa, MasterCard, etc. e-Commerce merchant accounts should be able to process any type of Visa and MasterCards, plus many more other credit card brands (dependent upon the location and terms of the processing bank). It is important to cover all your credit card holding customers, even though their credit card brand is a rare one.
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