If you’re looking to grow your small business, consider accepting debit and credit cards. Diversifying the types of payment you accept in your business can skyrocket your business and make for happier customers.
- Your Customers Pay You Faster. For business consultants, cash flow is key. But if you only accept checks, you’ll spend a great deal of time waiting for checks to arrive in the mail. When you accept credit and debit cards, your customers can pay your invoices instantly, and the funds will be in your bank account in a matter of days.
- You Can Streamline Your Accounts Payable System. Accepting cards online lets you take advantage of online payment tools like digital invoices (no more stamps and mailing them!) and electronic card payments. Customers expect to be able to pay invoices with a click of a button these days, so be ready to comply.
- You Attract More Customers. Did you realize that only 40% of people carry $20 or less? And 9% don’t carry cash at all. If you don’t accept credit cards, you’re missing out on a sizeable amount of business. That will only increase as we move to being able to pay for items with our phones.
- Your Business Looks More Legitimate. Even though you know your business is perfectly respectable, your customers might not see it that way if you operate on a “cash only” basis. And your business thrives on your customers’ perceptions. Simple placement of that little sticker on your window announcing that you accept credit card payments will instill trust with your customers.
- The More Options You Offer, the Happier You Make Customers. Most businesses that accept credit cards take Visa and MasterCard. Fewer accept Discover or American Express. And yet, there are millions of cardholders for both brands. The more types of cards you accept, the more business flows through your doors.
- You Increase Average Transaction Size. Think about all those people walking around with $20 in their pockets. What happens if they want to buy $50 worth of your merchandise? They can’t. But by accepting cards, you allow customers to buy as much as they can afford (or as much credit as they have), which encourages them to make larger purchases.
- Return on Your Investment Multiple Times. Worried about what it costs to accept cards? Don’t. Nowadays, the cost of entry into the credit card processing playground has gone down considerably. The transaction fees and maintenance fees you do pay will be more than covered by the increase in sales you see from accepting credit cards.
- Your Cash Keeps Flowing. As a small business, you have expenses of your own to worry about, and when you only accept checks, you’re at the mercy of the mail, the cost of clearing the check and risk of insufficient funds. You’ll probably end up paying late on your own bills as a result. But with credit card payments — especially those processed digitally — you get paid faster and can pay your own accounts receivables on time.
- You Can Reach New Customers. As a cash-only operation, you’ve got your solid customer base, but you could reach so many more when you accept credit cards. Once people hear that your payment options have opened up, they’ll flock to your store.
- You’ll Drastically Reduce Your Chance of Small Business Failure. Since 90% of small business failure is attributed to cash flow issues, accepting them is reason enough to increase your chance of success as a small business owner.
And there you have it. It makes financial sense to accept credit cards on so many levels if you want continued growth for you business. And who wouldn’t want that?