There’s a saying that cash is king, and it was, once upon a time. Nowadays, consumers turn to debit and credit cards for safety and convenience, especially when shopping online. They also take advantage of their ability to spend more at any given time, with the knowledge that their purchases are protected by their credit card company. Consumers are also more likely to spend more money with the knowledge that the option exists to pay off the purchase later. All of this benefits small business owners who accept credit cards by increasing sales and income for the business.
It’s Easier Than Ever to Set Up a Merchant Account
Once upon a time, it was cost-prohibitive to set up a merchant account for processing cards. Merchant service providers made the business owner jump through hoops to open up an account. Today, merchant service providers like BillPro make it quick and easy to set up an account with a straightforward application process. The days of the drawn-out and protracted process to get a merchant services account up and running are long gone. What this means for the business is quick access to credit card acceptance online and tapping into the potential for increased sales of their products or services, sooner rather than later.
How Credit Card Acceptance Translates Into Profits
When customers have the ability to use their credit or debit cards, they have the freedom to spend more money. A customer who knows there’s more money available is more likely to make an impulse buy with a credit card. He or she is also more likely than not to buy high-ticket items. The consumer gets instant gratification by owning the item now and paying it off later — no more having to wait for the bill to get paid off before being able to own the item in question. It could almost be called a type of reverse layaway.
What this means for the business is more sales, happier customers, and frequent turnover of product. Together, these three factors equal success.
Don’t Sweat the Fees
One of the strongest objections to accepting credit cards is the fees. Many business owners feel that fees eat into their profitability. The easiest solution to fees is to add them into the price of the product. Most of the time, the additional cost amounts to a few cents for each product sold. There’s no sticker shock for customers because the price increase is small. It won’t turn them away from making a purchase.
It’s true that fees are a part of accepting credit cards, but they are also a part of doing business. The increased sales far outweigh the relatively low cost of fees. Plus, fees usually go down with a higher volume of transactions.
If growth for your business is the plan, the best solution and the best way forward is to accept credit cards. It expands the customer base, encourages larger purchases, and gives customers more payment options.