Why Accepting Credit Cards is Better For Your Business Than Cash Alone

Why Accepting Credit Cards is Better For Your Business Than Cash Alone

Credit cards can be attractive, advantageous and beneficial for both business owners and customers. Businesses with credit options at checkout are in a better position to meet the needs of patrons desiring a payment option other than cash. Credit card processing as a means of expanding cash-flow of a business is worth considering. What are the advantages of accepting credit cards as opposed to having a cash-only business?

Better Customer Service

Credit card processing is a catalyst to premier customer service. It can quicken the pace of the payment experience. Consumers are drawn to companies with good customer service. This payment option is crucial to a business that sells products or services using the internet.

Increased Sales

If a customer does not have cash on hand, having an alternative payment option will increase the likelihood of following through with a purchase. Business sales can increase as a result of customer retention. Revenue will also increase due to attracting new consumers looking to spend on credit. Consumers tend to spend approximately 20% more on individual purchases when given a credit option.

Positive Reputation

Merchant accounts give businesses a more professional image in the eyes of consumers. Displaying card logos and decals make a good impression on potential buyers. An alternative payment option may mean the difference between receiving patronage or not.

Enhanced Cash Flow

Revenue gained by means of merchant accounts is deposited directly into the merchant’s bank account. Although there may be a delay before the funds become available to the merchant, credit card processing is very fast compared to waiting for a check to clear.

Lower Costs Overall

Although accepting credit card payments may mean added expense, it is less expensive than accepting checks. There is also the benefit of having less cash on hand that could be stolen.

Overall, giving a consumer more than one payment option is becoming more popular. Consumers have already begun to expect to have multiple choices for transacting money at the “checkout counter”. Accepting forms of payment other than cash will cost businesses money. But businesses are beginning to recognize this arrangement as a necessary operating expense in order to gain and retain customers. Merchant accounts give a business the advantage of being able to say “would you like to pay by means of cash or credit”.

Accepting Credit Cards on the Go

If you have credit card processing capabilities, you can now accept credit cards on the fly. Providers of merchant accounts are now allowing you to turn your smartphone or tablet to into a credit card processing terminal. How can you do this, how much does it cost and are there any requirements to accept credit cards wherever you are?

How Can You Accept Credit Cards on the Fly?

If you have one or more merchant accounts, you can connect your account to a device that you attach to your smartphone or mobile device to take credit card payments wherever you are. Customers can now use their credit cards when they purchase paintings at an art festival or when they buy hot dogs from you at the beach or at a youth sporting event. This enables your company to increase sales and cater to those who don’t like to haul cash around when they go out.

How Much Does it Cost?

Surprisingly, it doesn’t cost much to have this capability. In addition to standard merchant transaction fees, it costs about $30 or less to accept credit or debit cards on the fly. For most businesses, this cost can be recouped in only one or two transactions. Therefore, it is something that even the smallest of businesses can take advantage of to increase their customer base.

Which Companies Qualify For Such a Product?

The best part is that any company that wants to use their smartphone or tablet to accept payment via credit card can do so. However, it may be slightly more expensive to use if you don’t make a certain sales threshold each month. Businesses that make less than $3,000 a month tend to pay the most while companies that make more than $10,000 tend to make the most.

If you are thinking of ways that your company can expand its customer base, make sure to look into technology that allows you to turn almost any computer into a credit card terminal. This will allow you to make sales wherever you are and wherever your customers are interested in making a purchase.

When to Start Accepting Credit and Debit Cards

When is it a good idea for your company to start accepting debit or credit cards? Depending on what kind of company that you are running, it may be a good idea to start accepting these types of payments as soon as the company starts. Fortunately, it may not be hard to find credit card processing options when your company first starts doing business.

Credit Card Processing Options for Startups

Credit cards are a widely used payment option of customers who buy goods both online and offline. If you don’t want to use a merchant account right away, using a payment gateway that doesn’t require you to use a merchant account alongside of it could be your best bet. Many new payment gateways allow you to use their API to create different payment options for your customers.

Offering Different Payment Options for Customers Is Never a Bad Idea

Offering your customers the ability to pay for their orders with a debit card instead of cash or credit is never a bad idea. In fact, it may make it more likely that customers will purchase your products instead of purchasing products from the competition. The best part is that you don’t need to offer a large variety of credit or debit card companies that your company will accept.

Is There a Definite Time to Start Accepting Debit or Credit Cards?

There isn’t a time by which you have to start accepting credit cards. The decision should be made by considering customer feedback and determining how much money is being lost because customers are shopping elsewhere due to lack of payment options. When you feel as if there is more to be gained by accepting credit or debit cards as opposed to not accepting them, that is when your company should start accepting them.

A company that offers multiple payment options to its customers may find that customers have a better shopping experience and feel as if they are getting better customer service. When customers feel as if they are getting good service, they are willing to pay more for a product because they feel valued by the company that is selling them a good or service.

Why Painters Should Accept Credit Cards?

Professional painters rarely think about needing to accept credit cards. For years, most painters wrote up a simple invoice and had their customers write them a check. Today, however, the icrease in check fraud has made this way of doing business much more dangerous. In addition, many painters have discovered that they seem more credible and increase their sales just by accepting credit cards.

Unfortunately for many people in the painting industry, there are a lot of fly-by-night competitors who offer customers extremely low rates, then take off with their money without doing any work. Distinguishing a legitimate business from these scam artists can be hard. Most credit card companies, however, offer fraud protection on their customers’ purchases. That means that someone who needs their house painted is much more willing to take a chance on a new company if they can pay with a credit card.

Of course, being able to take on bigger jobs is crucial to any painting company that is looking to grow. Larger jobs mean more money, but it also means taking on customers who typically don’t have enough cash on hand to pay you all at once. For many painters, this means going into the temporary loan business, which can be disastrous. Instead, being able to accept credit cards means that a painter can take on the largest jobs he or she can hire the staff for, and let the credit card companies worry about when they’ll get paid. The painter receives all of the money upfront, and is able to buy supplies and pay staff while working on the job, without having to front the money out of his or her own pocket.

Finally, by being able to accept customer credit cards, a painter is able to give him or herself some extra security. Credit cards are almost always issued by banks that have some of the best fraud detection systems in existence today. This makes it much less likely that a painter will receive a bad payment by accepting credit cards than he or she would by accepting paper checks. Furthermore, all credit card transactions are handled electronically. That means there is no danger of getting robbed or losing a check.

Why Contractors Should Accept Credit Cards on the Job?

A contractor already has a lot to worry about while working on the job. One thing that a contractor should not have to sweat is the payments. Unfortunately, this is a pipe dream for many as it is hard to get around this issue. However, when accepting credit cards, a contractor can avoid problems and get paid on time. With this in mind, here are four reasons why contractors should accept credit cards on the job.

Fast:

When dealing with checks, one will have to wait days to receive their money. This is annoying and can cause cash flow problems. On the other hand, when opening a merchant account, one can begin taking in money immediately. With so many options, a contractor can charge a customer while he or she is still in the driveway. This is a serious benefit that will help one improve their cash flow and avoid problems receiving payments in the long run.

Justify spending:

Making payments with cash is not fun for most people. When a homeowner doles out hundreds of dollars, he or she will feel the pain and may want to rethink other projects. When paying with plastic, one will not think about this as they will swipe their card and sign their name. Remember, people do not think about or worry when using their credit card and they are likely to spend more money.

Protection:

People can write a check without having money in the bank. However, with a credit card, unless one commits outright fraud, it is hard to cheat a contractor out of their hard earned money. This is crucial for a contractor who wants to get paid for every job and not worry about a criminal or shady person taking advantage of the situation.

Advertise:

When trying to find and attract new customers, it is important to advertise. One way to draw a client in is to offer multiple solutions to their needs. For this reason, it is wise to accept credit cards as most homeowners will appreciate this capability. One must remember that most people have more than one credit card and love to use plastic in daily transactions. By advertising this to potential clients, one can bring in more business with little effort.

Without a doubt, a contractor should accept most forms of money. By doing so, he or she will not lose out on potential business in the future.

Some Counties Accept Credit Card Payments for Taxes

In the not-so-distant past, when paying taxes, a citizen would have to drive down to the local county tax assessor office and write a check. Other times, one would have to send a check in the mail. Times have changed, and plenty of counties now allow people to pay taxes online. In fact, currently, plenty of counties also let individuals pay their local taxes with a credit card. This offers a taxpayer a few advantages which are outlined below.

Rewards:

When making payments with a credit card, one can enjoy plenty of rewards. This can be in the form of airline miles, cash or gift certificates. This is beneficial when a person charges thousands of dollars to the merchant account. This is not too hard to do since some people pay thousands in property taxes to their county government every year.

Pay as they go:

As previously mentioned, taxes can run pretty high and most people do not have a lot of money in their checking account to meet this obligation. One way to avoid the shock is to use a credit card. For this reason, many counties have responded and are starting to accept credit cards. Think about it, when using plastic, one can pay off the balance in a month or two without paying any interest fees.

Fast:

It is usually time-consuming to pay by check or drop off cash at a county office. On the other hand, when paying by credit card, one can do so online and with a click or two of the button. This will save people time and enable people to pay their taxes without spending their entire day at the tax collector’s office.

Bookkeeping:

A person should strive to keep his or her expenses in order. This allows one to avoid problems come tax time as it is easy to let things get out of hand. Fortunately, when paying by credit card one will get a monthly and annual statement that they can look over and save for tax time.

It is now easier than ever to pay taxes in multiple forms. Using payment service providers and websites, county governments have allowed people to pay their monthly and annual tax obligations without leaving their home. This is in stark contrast to earlier times when one would have to spend the day at the tax collector’s office waiting in line and writing checks.

Deciding When to Start Accepting Credit Cards

It can be tempting to try and save money when running a business. This is not wise in some aspects as it is true that an entrepreneur must spend money to make money. With this in mind, some people want to wait to invest in certain aspects of a company. Here is a quick guide for an individual who wants to know when it is time to start accepting credit cards.

Big transactions:

When taking payments, some companies will only deal in small ones. This is true for a coffee shop, candy store or other place where people are not spending a lot of money. However, when a company starts to see large transactions, it may want to invest in a merchant account and start accepting credit card payments. Otherwise, clients may leave in frustration and head to another business.

Waking away:

Some smaller restaurants and organizations never accept credit cards. This is possible in certain communities. But, if an owner notices customer heading for the exit or commenting about the lack of credit card acceptance, it may be time to change the tune. Since clients who walk away will probably never return, it is extremely wise to do something about this and open a merchant account.

Growing:

It is wise to foster the growth of a company. In fact, without this, one is unlikely to turn the corner and make a lot of money in the future. One way to increase business artificially is to open a merchant account and accept all forms of payments, including credit cards. Remember, it is difficult to grow a business when one only accepts cash and check as many young people do not carry more than a few dollars in their wallets or purses.

Going into B2B:

When penetrating the B2B market, one can increase sales and make a lot more money. In the past, this was easy, and a business owner could accept checks from other business owners. This is not the case anymore as a lot of entrepreneurs love to use credit cards for their day-to-day spending as it makes it easier to account for expenses. For this reason, when expanding into B2B, one should start accepting credit cards.

Without a doubt, one must accept all forms of payment. Otherwise, an entrepreneur will struggle to gain traction and he or she will not build their company without a lot of growing pains.

Why There Are Fees to Accept Credit Cards?

When you have a merchant account, you may have noticed the small fees that are processed each time you swipe a credit or debit card for your customer’s transaction. The fees you are charged are based on the type of credit card that the customer is using and the total amount of the transaction. The credit card processing company that you have may offer different fees for the following types of credit or debit cards: Visa, Mastercard, Discover, American Express, and other major credit cards.

The fees that you may be charged will include a set fee plus a percentage of the transaction amount. You may be wondering exactly what those fees are for that are being charged? The set fee that is seen every time a credit card is swiped is for the approval or decline status message that is given back promptly 60 seconds after you swipe the card. This fee is going to be a set rate that will be determined in the merchant account contract for each brand of credit card that you plan of allowing your customers to use.

The percentage fee amount that is charged each time a credit or debit card is swiped is paid to the credit card processing company. This is for using their services in order to process credit cards. Some credit card processing companies may give the business credit card readers for free, but they will take out their percentage amount each time a credit card is ran on the reader or processed through the business’s website.

It’s important to know about the fees that are being charged to you or your customers every time a credit card is used. Your business will still benefit from taking credit card payments from your customers. You will be able to increase your sales which will give you more profit than just taking cash only. The fees can often be negotiable depending on the company your business is working with.

It is best to shop around before choosing a processing company that you are going to work with on all your credit card transactions. This way you can ensure the fees you are being charged are going to be at the lowest rates possible. The fine print will allow you to see if the rates can possibly increase later on and what other types of fees you may accrue on a daily or monthly basis.

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