One of a new business owner’s main responsibilities is to provide clients with an easy and effective way to pay for their merchandise. Businesses that accept credit cards attract and retain more customers. This is because most customers like to be able to pay for their goods and services even when they have no cash on hand.
Businesses should strive to provide customers with convenient credit card processing. Here are three facts they should consider when applying for this payment method.
- It Boosts Revenue
Because of their simple payment process, credit cards play a significant role in generating revenue for businesses. According to a survey conducted by Intuit, 83 percent of small businesses that accepted credit cards reported an increase in sales. Studies have also shown that consumers will spend 12 to 18 percent more when using credit cards.
Consumers usually make fast – and even impulsive – purchases when paying with credit cards, thus buying more items. By accepting credit cards, businesses can make in-store purchases effortless and attract new clients easily. More importantly, customers have the ability to buy products from their home through the company’s online store. Clients love to experience the luxury credit cards bring because it makes their lives easier and enhances their shopping experience. By accepting credit cards, businesses can increase their revenue.
- Merchant Services and Credit Card Processing
Merchant services encompass the entire spectrum of payment options, including debit cards, international payments, wire payments, ACH/eChecks, mobile payments, digital wallet payments, and more. Credit card processing is just one component of merchant services.
Business owners should understand the type and scope of their businesses – whether they will conduct business physically or online and how much streamlining they’ll need. This will help them determine the best credit card processing system for that business. A service-related business such as a restaurant, for instance, needs a point-of-sale (POS) system, a card reader, and a merchant account. Online businesses require payment gateways and merchant accounts. A mobile business needs a card reader and a merchant account.
- Credit Card Processing Fees
Business owners that are not familiar with credit card processing services usually do not fully grasp the fees associated with this service. It is therefore extremely important to find the right credit card processing partner. Business owners must study the list of fees and only choose the ones they truly need for their company. They can also try to negotiate lower fees or eliminate them completely. Entrepreneurs that run physical stores will need processing equipment, which they can lease or purchase from their credit card partner.
Many processing companies require businesses to generate a certain amount of revenue before accepting their application. This is to shield them from the damages chargeback fees can bring. Chargeback fee scans are very expensive and can lead to revenue loss and returned products or refunded services.
Businesses that do not tap into the power of credit card processing are putting themselves at a disadvantage and losing a sizable chunk of revenue. Entrepreneurs can work with credit card processing companies to get more from credit card users.