If you just started your own business, you may not yet be accepting credit cards as payment. Setting up this payment option may seem like a hassle, but it can benefit small business finances.
Accepting credit cards for your business payments can help you with your financial management, bring in more customers, and save everyone some time.
Keep reading, and we’ll tell you all about the benefits of accepting credit cards as payment at your business.
One-third of Americans say that they make no cash purchases in a typical week. As a result of this, Americans carry cash with them less often than ever before.
This is partly due to the lifestyle changes Americans had to make during the COVID-19 pandemic. Many businesses stopped accepting cash altogether, and many consumers started to view cash as unsanitary and inconvenient.
People are more likely to patronize a business that is convenient to them. If they walk into your store with only a credit card and are turned away, they probably won’t come back any time soon.
Because credit card transactions are digital, they can also be more convenient for keeping your business finances in order.
Credit card transactions are deposited instantly into your bank account, so you eliminate the errand of going out and depositing cash. You will also avoid the tedious task of counting large sums of money at the end of each night.
It Encourages Spending
Even those Americans that do carry cash tend to keep less than $50 on their person. When you limit people to cash transactions, you limit the amount of money they can spend at your store.
This limitation is psychological, too. When someone makes a cash purchase, they are all too aware of exactly how much they’re spending.
Most financially secure Americans put less thought into their credit card purchases. It’s easier not to worry about a payment when you can just swipe your card and forget about it.
Many people also use rewards programs through either their credit card company or a third-party app. The more they spend on their card, the more rewards they earn.
It’s the Most Secure Payment Option
Credit card payments cannot go through if the customer doesn’t have enough funds available. Cash runs the risk of being counterfeit, and checks can bounce.
Even if a customer uses a stolen credit card at your store, your business finances are safe because the card owner’s bank will be responsible for repaying those charges.
Credit card processing is also more secure than money transfer apps like Venmo or Cashapp. Some small businesses accept payments through these services as an alternative to cash, but they often lack customer protection.
Most money transfer apps will not pay customers back when fraudulent charges are made on their accounts.
Upgrade Your Transactions Today
You now know more about the benefits of using credit cards as a payment option. The next step is to find the best processing system for your business.
Your customers will thank you, and your business will be kept efficient and secure.
For more helpful tips, feel free to check out our other blog posts!