05 May Why Accepting Credit Cards is Better For Your Business Than Cash Alone
Credit cards can be attractive, advantageous and beneficial for both business owners and customers. Businesses with credit options at checkout are in a better position to meet the needs of patrons desiring a payment option other than cash. Credit card processing as a means of expanding cash-flow of a business is worth considering. What are the advantages of accepting credit cards as opposed to having a cash-only business?
Better Customer Service
Credit card processing is a catalyst to premier customer service. It can quicken the pace of the payment experience. Consumers are drawn to companies with good customer service. This payment option is crucial to a business that sells products or services using the internet.
If a customer does not have cash on hand, having an alternative payment option will increase the likelihood of following through with a purchase. Business sales can increase as a result of customer retention. Revenue will also increase due to attracting new consumers looking to spend on credit. Consumers tend to spend approximately 20% more on individual purchases when given a credit option.
Merchant accounts give businesses a more professional image in the eyes of consumers. Displaying card logos and decals make a good impression on potential buyers. An alternative payment option may mean the difference between receiving patronage or not.
Enhanced Cash Flow
Revenue gained by means of merchant accounts is deposited directly into the merchant’s bank account. Although there may be a delay before the funds become available to the merchant, credit card processing is very fast compared to waiting for a check to clear.
Lower Costs Overall
Although accepting credit card payments may mean added expense, it is less expensive than accepting checks. There is also the benefit of having less cash on hand that could be stolen.
Overall, giving a consumer more than one payment option is becoming more popular. Consumers have already begun to expect to have multiple choices for transacting money at the “checkout counter”. Accepting forms of payment other than cash will cost businesses money. But businesses are beginning to recognize this arrangement as a necessary operating expense in order to gain and retain customers. Merchant accounts give a business the advantage of being able to say “would you like to pay by means of cash or credit”.