“Do you accept credit cards?” It’s a common question asked by thousands of retail customers each day, and if your answer is no, you are doing your business a disservice. Businesses that don’t accept credit cards lose out on sales and customers. Here, we’re going to provide you with some persuasive reasons why your small business should accept credit cards.
You’ll Attract More Customers
People want to shop at businesses where it is convenient. If they see something that they want to purchase, and then realize they need to walk to an ATM to withdraw the cash to buy it, most people would rather go without the item. If you want to attract customers and keep them happy, you have to accept credit card payments.
Your Customers Will Spend More
A recent study found that people tend to spend between 12% and 18% more when they pay by credit card instead of cash. The reason for this is thought to be psychological. When customers pay by card, they cannot physically see money exchanging hands, and so it can feel like they are spending less than they actually are. By accepting credit cards, you will sell more higher priced items, as well as more impulse purchases.
You Don’t Have to Spend Much
If your store has a good PoS system already in place, it’s likely that it’s already set up to accept credit cards, so you won’t need to invest in expensive new hardware. Credit card transactions also don’t cost as much as you’d expect with the average being around 2.5% per swipe. If you wanted to, you could require customers to spend a certain amount of money before letting them pay by card.
You’ll Improve Cash Flow
If your business currently accepts checks but not credit cards, it’s likely that you spend a lot of money waiting for these checks to clear. Most credit card transactions clear within 36 hours, boosting your cash flow when you need it most. You also won’t have to carry physical money to the bank to deposit it, as credit card transactions are automatically deposited. All small businesses know how important cash flow is, so there really is no reason not to take advantage of an easy payment solution.
It’s Part of the Future
As mentioned in an article by middaydaily.com, customers now prefer using cards and hands-free technologies when paying for items. They don’t want to have to fumble with their wallets and count out change in order to pay for a Frappucino at Starbucks or a hot dog. Customers want to use a convenient payment method that enables them to pay for their item and leave as quickly as possible. Credit cards are part of the future. Failing to accept them in your store, café or even market stall could lead to you losing out on sales.
No matter what type of small business you currently run, it is becoming increasingly important to accept credit card payments.