Why Your Business Needs To Accept Credit Cards
In case you haven’t noticed, the United States is no longer a cash economy. As a matter of fact, there are only a few instances in which the cash in your pocket comes in handy. At a casino. When traveling. Or when you want to leave a tip.
Whether you like it or not, most consumers require that you accept credit cards, especially if your average ticket is relatively high. After all, credit cards make our lives easier & you can’t expect somebody to carry around hundreds of dollars at a time.
The fact of the matter is that the modern consumer is accustom to using credit cards. In a study by Fundera, 70% of consumers stated that they prefer card payments over cash. Also, with the use of mobile wallets becoming more commonplace, less and less people will use cash.
As you may have noticed, some businesses don’t even accept cash.
As a business owner, it is important that you accept credit cards so that you do not alienate the majority of your customer base. If this is not enough evidence of the necessity of a full payment solution, here are some reasons that accepting credit cards can help your business.
1. Most of your customers prefer credit cards.
According to research by Fundera, only 10% of consumers make all of their purchases with cash. Therefore, you can expect that most of your customers will prefer to use credit cards over cash.
In the next section, I’ll explain why credit cards are more convenient for your customers than cash. Convenience is perhaps the main reason that the majority of consumers prefer using credit cards over cash. Nonetheless, you cannot avoid the staggering statistic of only 10% consumers exclusively using cash.
Odds are that, if you only accept cash, you are alienating some individuals who do not carry cash at all times. This may become a deterrent to your potential customers that will hinder your business’ growth.
2. Credit cards offer convenience to your customers.
For most consumers, credit cards are much more convenient than cash. For one, as a cardholder, you do not have to cash checks. Through a debit card, you can access all of the money in your checking account. With a credit card, you can simply pay for goods & services up until you reach your credit limit.
Nevertheless, both debit & credit cards give the cardholder 24/7 access to the funds in an account, making them more convenient than cash.
As a business owner, you should want to make the lives of your customers more convenient. By making their interactions with your business more seamless, you increase the likelihood that they’ll visit your business again.
3. Credit cards are more convenient for you.
There are tons of inconveniences that come with running a cash business. For one, you have to frequently go to the bank to deposit that cash into your business account.
As a business owner, I’m sure that you do not want to add one more thing to your list of daily responsibilities.
Luckily, an electronic payment solutions provides you with a convenient way to transfer your funds to your business account. A great solution will allow you to set up automatic batching so that you do not forget to do so, making the solution even more convenient.
4. Your customers are more likely to spend more with a credit card.
This may come as no surprise, but consumers spend more with a credit card than they would with cash. The main reason is that a credit card specifically allows a consumer to use money that he or she may not actually have in a liquid account at the moment (credit).
As a result, the availability of credit allows individuals to spend more than they would with cash, which often translates to more spending at your business.
There is also the concept of limited availability when it comes to cash that is not present with a card. An individual that has $20 in cash may spend more conservatively than he would if he could use his card that has over $1,000 in it.
As you can see, accepting credit cards gives your customers more financial flexibility & freedom when visiting your business.
5. If you use the right payment solution, credit cards can be more secure than cash.
There are unique risks that come in handling cash that are not present in electronic payment solutions. Most importantly, there is the risk of theft. As long as the payment solution that you use is secure, accepting electronic payments can be more secure than cash payments since funds are transferred electronically.
As mentioned in our previous article, “6 Things To Look For In A Payment Solution Provider“, fraud protection is another important security feature to look for in an electronic payment solution.