With less people carrying cash, it’s become important for all companies to accept card payments regardless of size. However, whilst debit card is widely accepted, many businesses are still reluctant about accepting credit card. This is mostly due to the fact that the seller is charged every time there is a transaction. This is usually only a tiny fee, but some businesses still feel that they’re losing money by accepting credit card. The opposite is true – not accepting credit card could be causing you to lose out on potential customers. Here are just seven reasons why you should set up a merchant account and start letting customers pay by plastic.
It encourages bigger sales
Credit cards make shoppers more comfortable spending more by giving them the option to borrow money quickly and conveniently. By not accepting card, you could be putting off buyers from spending huge amounts. They may end up searching elsewhere for a company that does accept credit card or they may decide against the purchase altogether. Car repair centres, veterinary clinics, travel agents, furniture stores and handyman services are just some of the industries where these big purchases are commonplace and in which credit cards should always be accepted. You could find that you convince people into making a purchase simply by telling them that you accept credit card.
It offers customers security
Many customers favour credit cards because of the security that they offer. Some credit card companies can offer refunds on any transactions that turn out to be dodgy – it can serve as a free warranty in some cases. Credit cards are also very difficult to clone and often contain a chip that’s more secure than your average magnetic strip. Being able to offer this more secure form of payment could help to tempt more customers into using your service.
It can prevent you getting conned too
Credit cards can offer you a level of protection too compared to other payments. It could save you from having to accept cheques, which can be more easily fraudulent. It could also prevent you having to set up an instalment plan for large transactions in which buyers may fall behind more easily on payments.
It can speed up transactions
Because credit cards are such an easy form of borrowing, they make it easier to impulse buy big things. Any customers wanting to borrow money to use your services might otherwise have to take out a loan, which could be a lengthy process giving them time to go back on their decision to make the purchase. Credit card transactions are also processed at a quicker speed due to being digital. They’re much faster than having to wait for a cheque to be cleared.
You can accept credit cards on the go
If you’re a handyman or a market stall trader, you may be against the idea of credit card simply for the fact that you have nowhere to plug in a credit card reader. However, it’s possible to buy a mobile credit card reader which can allow you to accept credit card payments on the go. These readers are very compact and relatively cheap making them a convenient purchase for anyone.
Merchant accounts aren’t complicated to set up
Accepting credit card doesn’t have a lengthy setup process. You can open up a merchant account online in a matter of minutes and start accepting payments usually within 48 hours. It’s not like taking out a credit card, which can be a laborious process – credit card companies are more interested in collect lots of information from credit card users rather than the creditors themselves who don’t have to pay any debts back.
Your company will seem more professional
Accepting credit card is something often associated with big companies that regularly take in large amounts of money. By this token, accepting credit card can make you appear to be a successful company that isn’t concerned by the small charges that credit card transactions place on the seller. You won’t have to turn people down wanting to use credit card, which will also help to make your company feel more accommodating. All in all, it can build trust and confidence in your service.