5 Ways Accepting Credit Cards Can Help Small Businesses
Due to budgetary constraints and lack of resources, smaller-sized businesses may struggle to achieve lasting success. Lack of cash flow within an organization factors significantly into 82% of business failure, according to U.S. Bank. With 66% of American consumers preferring to use credit cards to make a purchase, businesses can increase cash flow by accepting credit cards as a form of payment.
Here are 5 ways accepting credit cards can help small businesses:
1. Decrease Transaction Time
Customers don’t like dealing with cash. Accepting credit cards can cut transaction times down to seconds, benefiting both the customer and the merchant. Merchants can offer more efficient customer service and customers will appreciate shorter waiting times. In fact, 70% of consumers express disinterest in returning to a store if they experienced long waiting times during their initial visit.
2. Boost Sales
Cash carries concrete value, but credit cards offer much more flexibility. According to a CreditCards.com survey, 5 out of 6 Americans admit to making impulse purchases. In fact, consumers spend 12-18% more with credit cards than cash. Merchants that accept credit cards can increase sales since consumers tend to relax their credit budgets more readily than their cash payments. Credit card payments also allow businesses to sell products online, giving customers the freedom to shop and purchase inventory at any time, from any location. Online stores can greatly increase transaction amounts and boost sales for a small business.
3. Increase Security
A merchant services provider speeds up the credit card transaction process and provides enhanced security. Advanced technology such as encryption and tokenization keeps card data and customer account information protected. In addition, merchants can virtually process credit cards with ease and rest assured that data will remain safe from hackers and fraudulent activity.
4. Grow Customer Market
Capturing only cash payments limits businesses to a smaller available market. According to Federal Reserve data, 72% of consumers have at least one credit card. When merchants accept credit cards, they open their doors to a much wider customer market. Accepting credit cards also adds more credibility to your business. Simply displaying credit card logos at your store or on your website helps build trust with prospective customers, and can encourage them to do business with your company.
5. Save Time and Money
Accepting credit cards can help small businesses save time and money. Many merchant service providers offer advanced online gateways that allow merchants to process transactions virtually. In addition, payment gateways that integrate to accounting software accelerate and simplify the credit card payment process. With payment processing software, merchants can settle batches electronically at the end of the day and receive funds in their account within 48 hours.
Invest in Your Business
Accepting credit cards can help small businesses grow and flourish. With the addition of electronic payments, you can increase sales, expand your customer base, and reduce transaction time to heighten the overall customer experience and extend the life of your business.