There are several advantages for merchants who can accept credit and debit cards as another form of payment.
Business offering multiple forms of payment enjoy more sales.Customers have the
power to make purchases that they deem necessary even though they don’t have the cash on hand – and they appreciate the option of an additional convenient way to pay. Industry research indicates that the ability to accept credit cards increases revenue by as much as 23%. Over 90% of web purchases are made using credit cards. If you are selling ANYTHING on the web and you are not accepting credit cards, you are eliminating 90% of your potential buyers.
Cardholders generally feel privileged and exhibit greater financialfreedom. When paying with credit cards, they typically spend more than when paying with cash or check, and they tend to place extra orders and order more often. Credit card holders buy more on impulse, are more affluent, and buy 2½ times more merchandise than non-card holders.
Business owners gain credibility in the eyes of potential and existing customers. You are able to state that you accept cards and proudly display the appropriate card logos and decals at your place of business, on your business cards, marketing brochures and website. Studies show that when you display credit card logos as forms of payment you accept, these logos create a sense of ‘trust’ in your customers mind, and if they trust you, your customers will buy from you.
Having the ability to accept cards means that you can track your customers and offer your loyal clientele membership programs such as card reward points, cash back and other incentives. For cardholders, rewards rank second in importance only to rate and fees.
Fast funding provides an important cash flow benefit, especially when it’s time to fund payroll or make inventory purchases for the week. Electronic transaction processing can help speed up the credit card payment process. Instead of waiting for checks to clear, or 30, 60, or even 90 days for invoices to be paid, funds resulting from credit and debit card transactions are deposited directly into your bank account, often within 48 hours. Electronic payments will enable faster payment cycles, which lead to improved cash flow and decreased billing overhead
Provide an audit trail; accounting automation and accuracy of accounts receivable.
With credit card processing, the transaction flow is conducted automatically. Automated acceptance and settlement allow funds from the credit or debit transaction to be deposited directly into your bank account. By making the payment process more efficient and less time consuming, you do not have to worry about being a payment collection agent. Instead, you can focus on the other aspects of your business and leave payment processing in the hands of your bank or transaction
Electronic payments provide more security with reduced shrinkage and insurance liability in contrast to handling cash at the counter and securing large amounts of cash on hand