Plastic cards have long been the chosen modality of payment for consumers around the world. In the United States, many studies have shown that 70% of the population has at least one credit card. It’s been three years and that percentage can only have grown over this period.
Nonetheless, the extent of card usage is undeniable and in 2018, it is predicted that these modes of payments will come in more customized shapes and sizes. If you’re a merchant who doesn’t accept credit cards, you’re missing out on a lucrative opportunity and other benefits as well.
One of the most significant advantages of accepting credit cards is that you substantially increase sales because cards encourage impulse buying, among other things. A consumer can walk into a shop, not willing to buy a certain thing, but end up changing his mind anyway. Now, at this point, if you don’t accept credit cards, there is a large chance that you’ll lose this customer if they aren’t carrying the cash with them. Furthermore, customers are becoming more inclined towards not carrying cash and paying through mobile platforms or cards. In fact, shoppers often prefer that to pay through credit cards.
Reduced errors and theft avoidance
Credit card payments are more secure both for the consumer and the business. They reduce the number of human errors in accepting payments and also discourage any attempts from misguided staff to help themselves to some of the cash from the payment register. Card payments are online and therefore they also streamline the cash flows of the organization by automatically updating the system on the details of each invoice. This means that generating financials is easier and hassle-free.
Cheaper handling and processing
Management of payments made through credit cards is much cheaper and easier than handling cash payments. Sorting, counting and then transporting batches of cash every day to a safekeeping destination such as a bank is an enormous task that consumes a large number of resources which can easily be saved by accepting payments through cards. Moreover, this is another domain where there can be considerable human errors, and as a result, the entire operations of the company may be hampered.
Credibility in the eyes of consumers
Businesses that accept credit cards are usually seen as more credible in the eyes of customers. This is because accepting credit cards means going through a number of verifications as a merchant and at the end of the day, you’re associated with credible service providers. This means that the chances of being fraudulent or sneaky are reduced substantially. As a result, consumers think of a merchant accepting cards as being more reliable in terms of the services that they provide.
Enhanced customer service
This is one of the most essential elements, both in terms of the benefits of credit cards and also for any business in general. Successful businesses always believe in going an extra mile in order to provide their customers with the best services that they can muster. This is because a happy customer is the best asset any firm can have. Accepting credit cards contributes a lot to this matter because it offers consumers the convenience to pay how they want to without going through any trouble of handling cash at all. This means that whenever a customer leaves your shop, they have a smile on their face that says it all about his experiences inside.
Credit cards definitely increase any company’s customer base. So apart from expansion of customer base, it streamlines merchants’ cash flow. It reduces the time of payment cycles thus improving cash flow. It has to be borne in mind that uses of credit card especially at the point of sale reduce the time of customer transaction. This positive effect on customer service improves customer loyalty.
For any small business owners managing huge cash is really difficult and usage of credit cards lessens security risks. That is why to sustain and expand any current business credit cards will be an integral part of their payment options. To improve sales, cash flow and business risks it is imperative that small business should embrace credit cards.