Discover the Many Perks of Accepting Credit Cards
While cash is an acceptable form of payment for almost every type of
business, more people today choose to pay for things using credit cards.
Credit cards are easier to carry than cash and they are often safer,
with limits to the customer’s personal liability if those cards are lost
or stolen. Some credit cards offer their owners rewards in points,
airline miles, or even cash. And it’s not only individuals who prefer
shopping with credit cards. Many companies provide their employees with
corporate credit cards that allow them to track expenditures more
But credit card perks are not limited to individuals and
businesses that want to use them to make purchases. A business owner or
manager will find that there are also benefits in accepting credit cards
from his or her customers. There are so many benefits, in fact, that
most companies today would be remiss to accept cash only. Luckily, it’s
easier than ever to set up the merchant services
you need to start accepting credit cards and reaping the benefits. Here
are just a few of the perks associated with credit card payments.
of all, accepting credit cards allows a business to offer a variety of
payment options to its customers. There are many types of credit cards
from many banks, in addition to cash and checking account options that
most customers have. That flexibility in the use of credit cards, in
turn, allows those customers to shop more freely, to make impulse
purchases, or simply to stock up on items they need for their homes or
their own businesses. This has the immediate effect of improving a
business’s bottom line. More money coming in generally means company
growth as well as an improvement in the business’s credit worthiness.
Better credit worthiness can, in turn, mean more growth, with only the
sky as the limit.
Accepting credit cards from its customers also
allows a business to take advantage of funds quicker than it would if it
accepted only checks for the payment of goods or services. In fact,
only funds from cash payments are available faster than credit card
funds…and if the business uses a merchant account for processing its
credit card receipts, those funds may be available just as quickly as
cash. This, in turn, improves the cash flow of the business, allowing it
to take advantage of special offers in sales of supplies it needs.
benefit of accepting credit card payments is that it allows a business
to limit potential losses that could occur through accepting personal or
business checks from its customers. After all, checks can take several
days to clear or—worse—to bounce. In fact, it could be weeks before a
business discovers that a large check it accepted is no good. At that
point, the business will not only have to pay bank fees to pay for the
insufficient funds, but it might have written its own checks against
those funds, thereby causing those checks to be returned for
insufficient funds. And that can open up all sorts of problems with the
business’s own bank, suppliers, and debtors. Additionally, in this type
of situation, the business will have to go to the trouble of either
recapturing the lost funds or recovering the goods that were sold. Often
this proves impossible.
By comparison, credit cards—especially
those processed through a merchant account—can be verified by the
business almost immediately, often before the customer takes possession
of the goods or services it has attempted to purchase. The business can
discover right away if a customer cannot pay for his or her purchase,
thereby saving itself a whole host of problems.
benefit of accepting credit card payments from its customers is that the
business can take orders over the Internet or telephone more easily. No
longer will it have to wait for a check or money order to arrive in
order to fill a customer’s order. The customer’s credit card can be
verified before the goods or services are provided. Once that
verification occurs—and again, a merchant account can speed up that
verification process to real time—goods or services are usually released
even more quickly than they would be if the customer pays with a check.
Quicker service for a customer—because of quicker payment
verification—will often mean that customer will return to the business
for future needs.
Of course, no form of payment is perfectly
safe. Invalid credit card accounts manage to slip into the system. But
when they do, they often leave a better trail than a bounced check would
leave. And with the right merchant account provider, verification is
usually fast and reliable.
In summary, a business that accepts
customer payments via credit cards will provide convenience to its
customers, increase the number of customers who seek its services,
increase its sales volume, and improve its Internet, mail, and telephone
services. With all those benefits available, why wouldn’t a business
accept credit cards?