How Accepting Credit Cards for a Business Can Instantly Boost Sales

Whether or not you will be accepting credit cards for business is a question that many small business owners give a lot of thought to. There are fees for renting credit card machines. There is usually a cost for every transaction based on a straight fee and a percentage of the bill. At the same time, there can be enormous benefits to making this move.

Accepting Credit Cards for Business & Growing Your Customer Base

The single most important reason for allowing credit card sales is that more people will shop at your store. You have to be flexible when you sell expensive goods. Think about it: if someone wants to buy $200 worth of merchandise from your gallery or specialist grocery shop, are they going to hand over $200 in cash? They are going to haul out a credit card, debit card, or cheque. If you limit them to cash only, then you are also limiting your money-making opportunities.

What Are the Security Risks of Other Methods of Payment?

There are, however, reasons why consumers and sales people prefer credit over debit and cheques:

  • Consumers do not like such large amounts of money disappearing from their bank accounts right away
  • They do not always have a lot of money available right now and are likely to have their transaction denied
  • Sales people dislike cheques because, like promises, they can be broken

Disadvantages of Accepting Cheques

If a client writes a cheque and there are insufficient funds to cover it, the business incurs a bank fee. This can be passed on to the consumer if you can get hold of him or her. Then you have to get the money, which might not be as easy as it sounds. If the consumer refuses to repay the money, then there is the hassle of instigating legal action.

Disadvantages of Accepting Debit

If a debit card is not accepted at the point of sale, then that consumer might not have any other payment option unless you allow credit card payments. You just lost a sale because a customer would have used his credit card.

Credit Card Benefits for Customers

Why do people like credit so much? They can defer payments, sometimes indefinitely. They earn rewards like air miles. Carrying cash around, on the other hand, feels dangerous. Even cash brings with it the uncertainty of fraud since forgeries are rampant.

A Final Look At Accepting Credit Cards For Business

The primary reason why accepting credit cards for business is so advantageous is the customer is likely to spend and spend more. Not only do you, the business person, ensure there is an acceptable payment method available, but the value of each purchase could be higher than it would otherwise have been. It will be a secure payment too. Make sure your POS system can accept all of the major credit cards.

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Matthew Hunt has been helping small businesses get set-up with Canadian Merchant Account Services since 2007 and helped 1000's do so. Join Matthew on Google+.

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