It is amazing to me how many different sized businesses still are not accepting credit cards as a form of payment, and do not know about other value-added products. Many business owners I have talked to that do not accept credit cards at their business seem to have the same two objections. The first reason is that the fees are too expensive, causing it to not be cost effective for them. The second reason is that no one has ever asked them to pay with a card. Although we may find the later objection odd in today’s world, where everyone seems to pay with a credit card, it is frequent in the landscaping, IT, delivery, home based businesses and many more.
Credit card acceptance has been said to add many different benefits to a business. Most business owners report large increases in profits when they begin accepting credit cards. Credit cards allow customers to make a purchase, despite a shortage of cash.
Services businesses, such as IT professionals, will see a large decrease in the number of past due accounts. It is also historically true that people will even spend more because they don’t have to part with cash. It is less expensive for you to accept a $50.00 payment by credit card, than the costs of labor, supplies and postage required to mail an invoice.
If you are a web-based business, approximately 90% of web purchases are made using credit cards. If you sell on the web and you don’t accept credit cards, then you are potentially eliminating 90% of your potential profits.
Many businesses are using value added solutions, such as gift cards, to draw in customers. I knew a bar owner who purchased 1000 gift cards and loaded $5 on each card. He then sent out girls to his competition to hand them out, saying the first beer at his bar is on the house. Gift cards and loyalty cards are a great way for a business to advertise. Most gift card reporting systems store contact information so that the business owner can send the customer free promotions, or even load free birthday items onto their loyalty card.
Businesses today that feel that accepting credit cards and value-added solutions are too expensive, or not cost effective for them, are not seeing the big picture. The fees associated with processing credit cards are small compared to the business and revenue that could be lost.