Benefits of Accepting Credit Cards
If you own a business, it may be about time for you to accept credit cards in your business. Being able to accept credit card payment from your customers will surely bring
many benefits. What are those benefits?
Increase your sales dramatically: Offering your customers a quicker and more convenient way to purchase from your store will definitely boost your customer sales.
Many consumers today prefer to use their credit cards for shopping because they can pay even without cash.
Impulse Sales: When it comes to shopping people want “Buy Now”. They are looking for sellers who will provide them convenient shopping experience. The main factor that they look for is a convenient and fast payment process. Credit cards give them the ease of shopping. They no longer have to carry heavy cash along with them. It helps them to take quick decisions which could have taken time if they rely on cash payments. So as a business you need to accept credit card which is the latest trend. There are of course numerous benefits of accepting credit card payments.
Be competitive your competition: Accepting credit cards payments will give your business a competitive edge over other merchants who only accept cash or check payments.
Receive customer orders 24/7. If you have a business website, you can receive orders from online shoppers at any time of the day, all days of the week, and all days of the year.
Enhance your company’s image and credibility. A business with a merchant account is seen as a reputable and legitimate company. Prospective customers will be more confident to purchase from your shop and choose you over other merchants.
Free credit card decals and signage: When you get set up to accept credit cards the merchant account company should offer you free credit card decals and other signage to promote card acceptance. Let the millions of credit card cardholders worldwide know that you proudly welcome credit card card products by displaying the credit card logo at your business.
Finding the right account: Knowing more about the credit card acceptance process will help you identify the account that works best for you. Before you sign a processing contract with an acquirer (financial institution), ask yourself the following questions:
1. How well do I know the financial institution I’m doing business with?
Member financial institutions either sell directly to merchants or hire agents to sell for them. However, these agents must be registered with credit card and clearly identify the credit card member they represent on their business cards and stationery. The contract you sign should also have the name of the bank clearly identified.
2. What are the typical kinds of fees for credit card processing?
Discount rate (a percentage of sales)
Fees for supplies (e.g., drafts, roll paper, etc.)
Terminal lease or rental fees
3. Should I rent, buy, or lease a draft capture terminal?
Calculate the long-term costs and any need to repair or replace the unit.
Consider whether or not it can be upgraded to accommodate new technologies.
4. How often will funds be credited to my business account for my sales?
5. How many days will elapse from customer purchase to account funding date?
6. Am I required to have a certain percentage of my sales dollars or specific dollar amounts held by the financial institution? If so, what is it and how is it determined?
7. Who is my contact for settlement and customer dispute issues?
8. Who is my contact for terminal replacement or repair?
9. How long do I have to store my receipts?
By requiring payments in cash or in check, you could also be alienating some types of customers. What about people who do the shopping for businesses? Remember businesses have plenty of things to buy but most of the people responsible for purchasing are required to use credit cards for the business. If they can’t use their credit cards at your company, they won’t give you their business!