Avoid Loss with Merchant Services
As the world’s marketplace becomes more
and more global, business owners everywhere must look for new ways to
remain profitable and competitive. Accepting credit cards is a simple –
and profitable – way to attract new customers and grow both your bottom
line and your customer base. But instead of looking at the myriad ways
merchant services can help your business grow, consider the ways in
which NOT having merchant services can cause your business to become
stale and stagnant:
Loss of customers
No matter what the economy is like,
consumers love their credit cards. Credit cards offer consumers broad
advantages, including flexibility, convenience, and security. Unlike
cash, credit cards allow consumers to make purchases of large items and
to fit those purchases into their monthly budgets by paying off the
balance over time. As the balances are paid off, consumers know that
credit will become available to them again for future purchases, making
them an ideal solution for customers of all income levels.
Credit cards also eliminate the need for
careful, to-the-penny budgeting when shopping. Unlike cash purchases,
which are limited to the amount of money in your pocket or purse, credit
cards allow consumers to make decisions as they shop, and can replace
large amounts of cash needed for major shopping trips.
In addition to being more convenient,
this last factor also helps consumers feel more secure. While cash can
be easily lost or stolen – gone for good – credit cards can be replaced
if stolen or lost, and consumers will not be held responsible in most
cases for charges made by someone who has stolen the card.
Today’s consumers also know the value of a
healthy credit report and score, which can be used to approve or deny
future credit, including home and auto loans, as well as insurance and
even job opportunities. They also know that reliable use of credit is
one of the surest ways to quickly build a robust credit history.
And finally, today’s cards can offer
attractive advantages to those who use them in the form of rewards. As a
result of increased competition among cards, many issuers offer cash
rewards, free hotel stays, airline miles, or merchandise to card users
who make regular purchases on their cards, meaning consumers are using
their cards for all types of purchases, from large to small, to earn
these valuable rewards.
Loss of profits
In addition to the profits your business
will see as the result of attracting – and retaining – larger numbers of
customers, credit card users also make many more impulse purchases than
cash buyers, and those impulse purchases are of a much higher value
than those made by customers using cash.
In addition, spending studies show that
consumers who use credit cards shop more frequently and make more
expensive purchases than those who use cash. They also tend to buy more
big ticket items, which can help you accrue profits and also help keep
Loss of Credibility
Studies show that customers actually have
a significantly higher level of trust in businesses that accept credit
cards over those that do a cash-only business. In fact, when
interviewed, consumers indicated they believe businesses that accept
credit cards are more established and reliable than those that accept
Businesses that display the logos of the
cards they accept receive an instant level of credibility and trust,
even when those businesses are new. Studies also show consumers believe
that businesses that accept credit cards have undergone more rigorous
financial scrutiny by card issuers and other financial institutions, and
hence believe them to be more credible and dependable. Especially if
your brand is relatively unknown, accepting credit cards is a great way
to gain instant credibility among current and potential customers.
Loss of cash flow
Establishing a merchant account and
accepting credit cards means the proceeds from those sales are deposited
into your account each day, which means your business has more cash to
draw from. Unlike checks which can take many days to clear – and
sometimes fail to clear – credit card transactions are processed and
approved when the sale is finalized.
And unlike cash and checks that can be
lost or stolen, credit card proceeds are securely transferred
automatically by your merchant account provider directly into your
business bank account. That kind of regular and secure cash flow can
help your business thrive and grow substantially.
These are just a few of the ways your
business could lose out if you neglect to accept credit cards as a form
of payment for your company’s goods or services. Merchant account
providers today offer attractive terms and fees and a simple online
application process that can have your business accepting credit cards
in no time at all. Take some time today to explore the advantages of merchant services, and take the next step toward helping your business become more competitive and profitable.