Women In Business

Why a small business should accept card payments

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Small businesses are used to cash payments, but many are transitioning to accept card payments as there are plenty of good reasons to do so. Card payments involve using a credit or debit card in paying for products or services.

According to statistics, the main payment method of online transactions in Australia is through a card. The 2016 survey shows that Australians use credit and debit cards more often than cash, with 52 percent of payments were done with cards as compared to 37 percent using cash. With this in mind, what other pertinent reasons are there that small businesses should accept card payments? Find out the answer by reading below.

Boost productivity and sales

Small businesses should accept card payments because it can boost productivity and sales. Employees who are in charge of cash payments or cashiers spend longer counting bills and coins and handing change to customers compared to those who process card payments. With a more efficient payment method, the workflow is easier for your staff, thus increasing productivity.

According to a retailer payment study, some merchants don’t accept card payments because they find cash payments more profitable. Merchants have the misconception that having a cash-only policy is better than accepting card payments because of the zero cost of accepting cash. However, what small business owners don’t often realize is that accepting cash payments only leads to smaller sales or lost sales, which may hurt the business in the long run.

Here are the findings of the said study:

  • Customers tend to make larger purchases when allowed to pay through card payments.
  • Even if retailers incur a higher cost in accepting card payments, this can be compensated by the increase in sales.
  • Small businesses have more customers when card payments are accepted, and this constant and steady patronage can lead to significant sales or increased profitability.

Convenient to use

Contrary to popular belief, opening a merchant account is inexpensive. Customers also find card payments more convenient, which can, as mentioned, cause a significant increase in sales.

Incorporate sales and marketing strategies

Small business owners can also incorporate sales and marketing strategies via card payments through gift card payment transactions and customer rewards or through a points-system. By offering these incentives and services, you encourage customers to come back and do business with you, preventing them from even trying your competitors because of the high satisfaction they experience when shopping in your store.

Promotes excellent customer experience

Nearly everyone has at least one credit or debit card in their wallet. Because of this, it’s actually a good idea for small businesses to start accepting them. What are the implications of not accepting card payments? A service business may experience cancellation if customers do not have the cash in hand to pay for a service. Customers may also opt to only deal with businesses that accept card payments.

Most customers find businesses that accept card payments as legitimate, especially if they display card logos on their website or on the window of their premises. Thus, customers will feel more convenient doing business with you if you accept card payments as it creates a sense of trust and familiarity.

Thrive in the competitive business world

If you happen to visit business establishments near you, you’ll notice that card payments are accepted almost anywhere. Of course, if you still billing customers the traditional way (cash and change), then your small business may be left behind by the competition.

Besides, millennials are more comfortable with digital transactions nowadays, so accepting card payments would be beneficial for your small business.

Watch this video to discover more about the advantages of accepting card payments for your small business.

Improves your cash flow

All card payments will go into your business bank account, which means a great improvement in your cash flow. You don’t need to send invoices, wait for checks to clear, or deposit the money in the bank. Typically, you’ll get the money in your bank account within 24 to 48 hours after the sale.

Of course, you also have some peace of mind knowing that all payments go to your bank without being touched. Unlike in the past, there were cases of staff stealing cash or family members spending some money from the profit of the business because of their easy access to the cash register.

Conclusion

Small businesses should start considering the transition from cash-only payments to card payments.

The benefits of accepting credit or debit card payments are amazing. It can boost productivity and sales, enhance customer experience, improve cash flow, and let the business stay competitive.

Indeed, card payments are more convenient and promote greater profitability compared to cash payments.

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