How Can Card Payments Benefit Your Small Business?
Many small businesses today are forced to weigh the costs between ways that they can allow their customers to pay for products and services. There is obviously cost involved with allowing customers to pay with credit or debit cards. And, cash is still money.
But consumers actually prefer to pay with a credit or debit card according to recent statistics. That means that small businesses that are only accepting cash or check are missing out on a whole lot of business.
Setting up card payments for small businesses involves a quick setup process before they can start accepting payments. But it’s not as difficult as one would think. And then the business can start reaping the benefits of allowing card payments for their customers that will be lining up at the door.
In this article, we’re discussing how card payments can be advantageous to small businesses. Keep reading to learn more.
Of course, there are security concerns involved with using credit or debit cards but ultimately it’s safer than keeping a lot of cash. Keeping a lot of cash on hand is dangerous for purposes of theft and loss. Not to mention that fraudulent credit card charges can often be recovered.
Accounting couldn’t get easier than it becomes when payments are all processed on one interface. Small businesses especially worry about reporting and reconciliations come tax season. But, by allowing customers to pay with their cards small businesses can benefit from easier accounting procedures.
This can also save money on payroll come tax season because the books will be up to date and the accountants won’t be working overtime.
Credit card and debit card payments are processed electronically which saves time waiting for checks to clear or depositing cash in the bank. This can improve cash flow for the business and enhance accounting procedures. In most cases, credit card payments are received as soon as the next day after a purchase was made.
Cash flow is important to small businesses and this is a great way to balance the books and keep financials in line.
Improve Customer Experience
If there is anything to be learned it’s that many consumers prefer to pay with credit or debit card. That means many of them probably aren’t even carrying cash anymore. Businesses that offer credit card and debit card payment options are making a simple process easy and convenient for their customers.
This could also improve the probability that those customers will come back for repeat business.
Small businesses thrive on every sale they can get and if a business isn’t accepting credit or debit cards, they better be sure their competition isn’t either.
If a business wants to remain competitive in a cutting-edge market they should absolutely consider card payments options. There’s no reason to give customers a reason to shop somewhere else. Competition is key to staying alive for some businesses and offering card payments takes the lead.
Remember those statistics about consumers that prefer to shop with credit or debit cards over cash? Those are the customers that a business is losing if they don’t offer card payments.
Allowing customers to pay conveniently can boost sales because there will probably be an increase in customers. The more customers a business can attract the better and offering them something they want will bring them in quicker.
Some small businesses use accounting software that can integrate payment technology. This is a great way to begin accepting credit and debit card payments. It’s also a great way to integrate other facets of the business into the accounting schedule.
Instead of preparing invoices and spending wasted time at the bank, businesses can prepare invoices and accept payment via credit all with a few simple clicks.
Streamline Online Business
There’s no other way to accept payments online than to allow customers to use their credit or debit card.
If a business plans to sell products or services on the internet, they must invest in some kind of software to allow their customers to pay. Not having this option will result in lost sales and lack of customer trust.
Encourage Customers to Buy
Customers with credit cards in their wallet having buying power like many other customers do not. If a business is set up to allow credit card payments, they have more power to encourage those customers to spend their money. These are the customers that might make large and/or impulsive buying decisions that others with only cash or check will not.
When a business can proudly display logos of the credit cards they accept, it can and will create a sense of trust for their customers. Besides that, it establishes the business as a legitimate entity. Consumers don’t want to make purchases at establishments that they don’t know or trust.
Displaying the credit card logos and accepting them validates a business in the consumer-driven market where demand and satisfaction are high ranking factors.
Setting up card payments for a business is easy. Credit card readers usually also accept debit cards so there’s no need for more than one system. Payments are generally made to the merchant’s account within a few days.
Businesses can choose to require that their customers spend a minimum amount per purchase to avoid stacking up fees for small purchases. Some businesses even charge their customers the difference for the merchant fees if the customer prefers to use their credit or debit card. Either way can save the business money.
There are plenty of reasons for businesses to offer card payments as an option to their customers. Contact an alternative business lender to find out more.
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