Credit Card Processing: Cater to Your Customers

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More and more, consumers are turning to credit cards to help make large purchases and make their budgets go farther. Consumers who use credit cards say they appreciate the convenience, as well as the flexibility of being able to pay for purchases over time. Most customers today appreciate the ability to spread payments out over time, and will choose merchants who accept credit cards as a form of payment.

Many consumers also use credit cards to rack up bonuses, like frequent flyer miles and reward points, using credit cards to pay for everything from a cup of coffee to monthly property taxes to the mortgage on their home.

Credit cards also allow many customers the chance to shop online, an increasingly popular option for men and women who enjoy the convenience of shopping without leaving their homes or workplaces.

But beyond the convenience and flexibility enjoyed by consumers, businesses can also benefit by catering to these needs. Studies have shown that offering credit cards as a payment option can double or even triple sales in a short amount of time.

In addition to regular sales, credit cards also increase the number of impulse purchases consumers make. In one major consumer spending study, the average credit card sale was nearly five times that of the average cash sale, with much of those dollars spent as impulses and point of purchases sales. Other studies indicate impulse buyers are generally more affluent, and are more likely to have, and favor, credit cards as their primary means of payment. Credit card holders are nearly three times as likely to make impulse purchases as those who use cash.

Many experts agree this disparity is due in part to psychology: handing over cash is much more difficult than using a piece of plastic to make a purchase. But others add that consumers are likely to spend more when they realize they can pay over time, and make extra purchases without having an overall impact on their monthly budget.

Accepting credit cards also helps your business appear legitimate in the eyes of consumers, especially when your business is online. When a business accepts credit cards, it imparts an air of being established in the larger business community. By displaying the logos of the credit cards you accept, you also help inspire confidence in customers who use – and trust – those cards.

Accepting credit cards as a valid form of payment is nearly essential for any business that hopes to operate – even partially – online. Studies show that credit cards are used for more than 90 percent of all online purchases, meaning you stand to lose 90 percent of your potential customers if you do not accept credit cards as a form of payment.

By offering more than one form of payment method, you allow your customer to choose which form is best and most convenient for him or her. And by adding that degree of flexibility and convenience, customers tend to perceive merchants with a greater degree of satisfaction and trust. With more and more credit cards offering bonuses and rewards for regular use, customers are using their cards more often, to earn special privileges and benefits. Some cards offer discounts on every product purchased with the card, which can benefit you directly: your customer receives a discount, but you still receive full price.

Customers who use credit cards are also more likely to make larger purchases than those who pay with cash. What’s more, customers using credit cards also tend to order more often from stores they patronize than are those who pay with cash.

All of these factors are compelling reasons to consider accepting credit cards in your business. But if you need one more consider this: if you don’t accept credit cards as a form of payment for your business, chances are your competitor will. If your business is online, that can mean the early demise of your company.

If you’re in business, accepting credit cards is no longer a nicety offered to a select few customers; it’s a necessity that can have a direct impact on the health and longevity of your business. By accepting credit cards, you not only increase your sales, but increase your customer base by appearing more dependable and trustworthy than businesses that operate on a cash-only basis.

Today’s merchant account service providers make accepting credit cards a simple and convenient process. In most cases, setup is quick, and you can begin accepting credit cards within a few days of your initial application. The cost of establishing and maintaining a merchant account has also decreased in recent years, making it more affordable than ever to accept credit cards for your business. With a little time and effort, you can increase your profits while offering your customers an added degree of convenience and flexibility that will have them coming back again and again.

Karan Zabel is a freelance writer who writes about Credit Card Processing