Customers use credit cards to purchase products and services around the world, making them a chief mode of payment. However, small businesses that have not yet considered purchasing credit card processing machines are losing out on valuable business.
If you are looking to improve your sales and make operations more efficient, it’s vital to rethink and re-consider providing credit card processing services.
Whether you have an e-commerce website or a retail store, restaurant, or café, accepting payment via credit card will offer positive results. And while it may require a considerable initial investment, its benefits certainly outweigh the service fees you may have to pay upfront. Plus, the advantages of providing your customers with an efficient and modern payment alternative will help ensure that your business stays ahead of its competitors.
If you are new to credit card processing, take a look at this overview to learn more about how it works.
Then, check out some reasons for your small business to consider offering credit card payment services.
Keep reading to discover the different ways credit card processing services will benefit your small business.
1. Attract New Business/Customers
When it comes to making payments, convenience is of utmost importance to customers and it can help businesses attract new and less regular customers too.
For instance, if you have a customer who loves your restaurant, they will have to scramble for cash if your card machine isn’t working. And the ones who are less loyal will just walk on by.
But if you want your business to grow, it’s the new and less regular customers you want to attract as you are most likely already selling as much as you can to existing ones. That’s why it’s a smart idea to ensure that you set the barrier to payment as low as possible. This can go a great way towards converting potential customers into loyal ones.
2. Convenient, Secure, Fast
With a credit card processing machine, all payments are processed digitally and settled quickly as the customer and business only have to wait a few seconds for the transaction to be completed. In contrast, when businesses accept cheques or cash, your cashier will most likely have to return change. This can increase the amount of time it takes for customers to complete checkout.
Also, when you accept cheques, you run the risk of incurring extra charges in case they bounce. This could mean a lot of wasted time and effort to clear the payment. By using credit card processing machines, you eliminate the risk of bad debts as you will receive the amount from the credit card payment processor.
3. Increase Cash Flow
For small businesses to grow, it’s vital that they think about ways to increase cash flow, and accepting credit cards is one of the best ways. This is possible as it will greatly increase the time it takes for your business to get paid by customers. The funding time that credit card processing machines take is a lot faster than other payment methods such as cheques or ACH. So, when you accept a credit card payment, you can expect the funds to be reflected in your bank account within one to three business days.
4. Legitimizes Your Business
When you start providing credit card processing services, you establish your business as a legitimate one in your industry. Plus, when you display the logo of the types of credit cards your business accepts on your cash register or website, it will allow cardholders to trust your business. This is a great way to grab their attention too.
By offering both prospective and existing clients multiple payment options, they will be satisfied with the payment process and be more likely to visit your store. Hence, by accepting credit cards, you establish your business as a legitimate one and build trust with customers.
5. Saves Time
By investing in credit card processing machines, your business can save a lot of time as the entire process is streamlined to ensure payments are completed within a few seconds. Plus, they can be authorized quickly.
Unlike cheques and money orders, credit card purchases don’t take days or weeks to clear. This, in turn, will impact your cash flow. Even if your sales might not be increasing, your business will benefit from having credit card sales profits delivered straight to your bank account without having to wait.
6. Analyzes Customer Spending
Credit card processing machines for small businesses can help owners acquire data that is available through the credit card processor. This can help your business recognize and analyze your customers’ spending behaviour. Over time, this will allow you to customize specific accounts and create promotional and marketing campaigns designed to target particular customer behaviour. Additionally, the data can be used during a time and in a way when they are more likely to generate a purchase. You can also use this data to recognize patterns and trends that allow your business to target new and potential customers.
7. Allows Customers to Make Larger Purchases
Credit cards allow customers to make purchases by paying the credit card provider later. This lets individuals make larger purchases than they would have when paying with cash. And, since they don’t have to pay for the product or service as soon as they purchase it, it’s psychologically not as painful for them to spend.
Moreover, by providing a credit card processing machine, you offer a hassle-free payment option as your customers will be able to shop now and pay later. As for your business, the credit card processing service will ensure the funds are transferred to your business bank account within a few days. Over time, this will help your business grow by increasing the overall transaction size.
As you can see, there are numerous benefits to investing in credit card processing machines for small businesses, making them a worthwhile investment. If there was a way to keep your customers happy, save time, avoid unnecessary hassle, and improve overall cash flow, wouldn’t you give it a chance? By integrating credit card processing services, you can do all this and much more. And once you start accepting credit card payments, you’ll never look back.