How Does Credit Card Processing Benefit Your Small Business?
03 December 2017
When starting a small business you will hopefully begin receiving a number of customers who purchase your product or service. At some stage however and especially in the years to come, more and more customers will expect to be able pay using their Debit or Credit Card. This means that you will begin to lose customers who carry less cash and prefer the convenience of being able to pay with the Card. At this stage you will begin to try and find the best possible solution that will allow you to accept Card Payments. The first thing you will notice is that there are a number of different providers who are able to provide you with a machine capable of accepting Card Payments. The next thing you will notice is that not all Card Machines are the same and the different fees and payment options are even more confusing.
There will be many factors you will need to look at when making your decision however you can rest ensured knowing that getting a Card Machine is without doubt a good decision. Aside from accepting cash as a method of payment, being able to process debit and credit cards can bring about numerous benefits for your business whether you choose a fixed, portable or mobile credit card processing machine. These benefits can range from the more obvious to some that you may not have thought about before.
Boost your Sales
You are able to increase the amount of sales that you conduct by being able to accept credit and debit cards. This is because there are many potential customers that only carry cards on them instead of cash. When you start accepting cards you are then able to attract more customers. Not only will you be able to encourage more potential customers to visit your business, but you will likely see an increase in the average transaction amount as customers feel more comfortable to buy more products or services knowing that they do not have to worry about carrying a large amount of cash on them.
Cash in on Impulse Buys
It has been said that those who are paying with a credit card will generally be more prone to impulse buying. Card-swiping customers have a tendency to spend more money when they use a credit card as they may find it easier to part with a credit card than to pay with cash. There have been many studies on this particular behavior and is something that should be taken into account. It is also an advantage to have a Card Machine available in case a customer wishes to buy more products or services than expected and they can then use their card to pay for these items without needing to leave the store to withdraw more cash.
Improve Cash Flow
Credit and debit card transactions can improve the cash flow in your business, because these transactions are processed electronically and are therefore often settled quickly. The amounts are generally deposited into the business’ bank account by your processor in a couple of days. With no more waiting for cheques to clear or dealing with large amounts of cash, your business will enjoy an improved cash flow.
Paying with Ease Wherever
Mobile credit and debit card processing brings about convenience for your customers and also for the business. Mobile processing units can be used at large events where there are many people that need to pay for items. In addition, mobile devices such as tablets or smartphones can be converted into credit and debit card processors and used anywhere. In this way, the customer can pay immediately and the business will receive the amount due a lot quicker.
As a small business, your aim is to encourage people to shop with you. By having a merchant account for credit and debit card processing and displaying these additional payment options on your website or at your place of business, your potential customers are automatically assured of the legitimacy of your business. This is especially true for online businesses.
There are two types of security benefits gained by accepting credit and debit cards. Firstly, by dealing with less cash, your business reduces its chances of being a target of theft. Secondly, your business will avoid the possibility of accepting invalid cheques. A cheque that bounces can cost the business a large chuck of profit; not to mention, it is also time consuming for the business to track down the customer to recover the costs. Credit card transactions are screened during the process so that the risk for fraud is reduced.
There are many reasons why a small business should consider switching from accepting only cash to having credit and debit card processing terminals as an additional method of processing payments. Overall, a business can benefit by attracting more customers and increasing their sales.