For any type of business, accepting credit cards provides several advantages over simply dealing with cash. This is mainly due to the fact that most customers prefer to use credit payments and have stopped carrying cash altogether.
The convenience of just swiping a card is faster and easier for everyone involved in this type of transaction. In fact, studies have shown that business firms that do not accepting credit cards payments are in fact losing a great deal of revenue. For any major purchase, payment by a credit card can overcome the limitations imposed by a straight cash transaction making it easier for customers.
Another great advantage to accepting credit cards payments is the expansion of the customer base in a relatively short period. These types of payment solutions cannot only increase profits as previously mentioned, but also improve customer service as well.
In many instances, a customer who could not afford to make a purchase due to limited cash funds on hand can now use a credit card instead. There are also people who simply use their credit cards to make the majority of their purchases each month and then payoff the balance in full. Any store that caters to their needs is more than likely to see a great increase in profits. In this new age of online marketing,any business that operates in the virtual world needs to have a credit card merchant account for accepting payments in this method as potential buyers are likely to hit the back button very quickly. Shipping is also expedited in this manner since there is no waiting for a check to arrive and then clear before the purchased goods are sent to the buyer.
Another study found that customers on average spend about 2 and 1/2 times as much money on their purchases as compared to ones who only use cash. This means that merchants accepting plastic are certain to see revenues on the rise. Some times there are purchases that are totally unplanned for the buyer. Having the ability to swipe a card can mean the difference between getting the sale and losing it. Travel consultants have noticed that in their industry, the number of people who are reliant on cash and checks for trips and transaction during a vacation are rapidly declining.
In point of fact, it is more difficult for a business to handle checks or cash. This is due to the fact that the human element is still a large part of the transaction. With a credit card processor, all of the human error is taken out of the equation. It is simply much more convenient to use plastic than carry lots of money.
As technology advances,businesses must stay ahead of the curve in order to compete. In short, this means accepting credit cards to keep the customer happy.