Five Reasons Your Small Business Should Accept Credit Cards
In order to be competitive, small businesses need to accept credit cards. Though many business owners may look at accepting credit cards as an unneeded burden, the truth is that credit card processing is cheap, quick and easy. In fact, there are many good reasons that a business should begin accepting credit card payments as a way to boost profits.
Increasing Business Opportunities
In the modern business world, many transactions are completed over the phone and over the Internet. Though it is possible to take checks over the phone and Internet, credit card purchases are by far the easiest and most secure type of payment for businesses to accept. By being able to accept credit cards for purchases, a business will be able to sell its products and services to new and distant markets.
Legitimacy and Trust
Accepting credit cards makes a business appear more legitimate. As so much business is conducted through the use of credit and debit cards, customers expect businesses to accept credit cards for payments. In fact, customers may look skeptically at a business, even a small business, which does not accept credit cards.
Unlike handling cash and change or processing a check through an approval service, credit card transactions are approved and completed very quickly. This added speed makes it easier for customers to do business and reduces the amount of time that employees spend completing transactions. In addition, credit card transactions will be deposited in bank accounts of the business more quickly than cash or check purchases.
Numerous studies have shown that people spend more money when using a credit card than when using cash. This means that a business that accepts credit cards will not only enjoy more sales, they will likely enjoy larger transactions as well. Best of all, larger transactions will help to boost profits even more than more sales as there is usually no need for extra staffing from larger sales as there usually is from a larger number of sales.
Reducing Employee Theft
The use of credit cards to complete purchases will help to reduce employee theft. Employee theft is a serious issue for all businesses, especially the ones that deal in large amounts of cash. As it is difficult to monitor cash, it is easy for employees to skim cash without getting caught. However, by accepting credit cards, a business will have less cash on hand to tempt unscrupulous employees which will reduce the amount of theft that the business will sustain.