You’ve never accepted credit cards before now, why start? While a cash-only model certainly makes sense for some, it won’t stay that way forever. In fact, according to some research done by Pew International, many people have switched to online shopping and the trend is moving away from cash-only.
If you want to stay in business, here are some reasons you should consider accepting plastic.
Legitimize Your Business
More and more businesses are accepting credit cards because it helps legitimatize what they do. Cash-only businesses, unfortunately, carry a stigma – the stigma of being a shady business operation.
You may be completely legit, but customers often want the ability to pay using credit or debit cards because of the inherent safety of these forms of payment. Offer it to them, and you’ll see business improve.
Because more and more people are choosing to pay with credit cards, there’s an opportunity for you to boost sales. Credit cards are an easy way to do business and, with the introduction of smart chips in credit cards this year, it will get even easier – easier than paying with cash.
Level The Playing Field
Large companies have accepted credit and debit cards for years. You can’t compete with them unless you’re also accepting credit cards. Now, large companies can negotiate lower credit card fees than you probably can just starting out. But, that doesn’t mean you have no room for negotiation.
If you read through a good AMEX review by CardPaymentOptions.com, you’ll find that not all card issuers and companies are the same. Some cards, like AMEX, don’t use third-party sales organizations. Because of that, you may be in a better position to negotiate transaction fees.
Other times, you can hook up with a credit card processor, instead of trying to get a merchant account directly, and save yourself money – especially if you’re starting out and you don’t have the volume to command lower per transaction fees.
Improve Your Cash Flow
When you accept credit cards for transactions, you’re going to improve your cash flow. How? By moving money through your bank account every day via batch processing. With cash, you have to take the money from the till and physically deposit it into your bank account.
Some companies don’t do this on a daily basis because it’s inconvenient to run to the bank every day, especially if it’s a slow day.
But, with credit card processing, your merchant account or payment processor is electronically linked up to your bank account. Money flows right into the account. You save time, and you improve cash flow.
It May Be A Practical Necessity
If you plan on operating online, it’s a practical necessity to offer credit cards. Almost no one will send a check or cash in the mail to an online ecommerce store. It’s way to inconvenient, and customers cannot get their merchandise quickly enough (because they’re waiting for the check to clear).
Patty Richardson is a small business owner of several years. Whenever she has the time, she likes to sit down and write about the things that have helped her over the years. You can find her articles on a variety of websites and blogs.