Financial: Accepting Credit Card Payments
When we define what a small business is, it can vary in many respects. It can be defined by the number of employees, the annual revenue or where the business is based. If a single person have a business working in a shop at home, it can also be considered as a small business. In this present age, consumers want to be sure about the companies that they patronize and so it becomes necessary for small businesses to be able to attract these consumers to make their businesses legitimate in the eyes of these people. One of the ways small business make their customers trust in them is by accepting credit card payments. When you accept credit card payments, cardholders are drawn to your business and they will trust your business more. If a person trust a credit card enough to bring them along, they will also trust the companies that accept these credit cards and when you have gained the trust of consumers then they are very likely to buy from your business.
When you also take your business from a cash-only operation to one that accepts credit and debit cards, your potential customer base would easily broaden because your will be including those customers who find it more convenient to pay in credit. In other words, when you have broader base customers the potential of boosting your sales is apparent. Accepting credit card payments will also place you on the same playing field with the others in the industry aside from merely expanding your customer base.
It is an acceptable practice to purchase good and pay them in installments rather than saving money and wait until you can afford something before you buy it. But studies have shown that there is a tendency for consumers to spend more when they are paying with their credit cards instead of cash. The use of credit cards encourages people to buy but it also encourages people to buy on impulse in particular.
Because credit card transactions are processed electronically and settled quickly, with proceeds typically deposited into your bank account by your processor within a couple of days, this would mean no more going to the bank to deposit the check and then waiting for checks to clear, no more billing and waiting to collect from your customers, and less cash to handle. Accepting bad checks as payments is also eliminated. And because it is electronically transacted you can even let your customers buy your product online.
It is good to remember that shoppers choose the most convenient and beneficial payment to them. So if you do not want to lose a customer just because you are not offering its preferred method of payment, you have to provide them that kind of service. Besides, credit card processing is a highly competitive industry today, you can find a merchant service package that suits your budget.