Along with selecting your inventory and choosing a name for your business, you also may contemplate whether or not to accept credit card payments from customers. A common mistake that many business owners make at first is believing that cash or even check payments are preferable and even more secure than taking credit cards. However, before you dismiss the idea entirely of welcoming credit card payments at your business, you would do well to realize these four key benefits that come from offering this payment method to your customers.
1) Meeting Customer Demand
It has been estimated that more than one-third of all customers today prefer to use credit or debit cards to pay their bills at their favorite restaurants, grocery stores and other businesses. If you only take cash or checks, you are effectively turning away a significant portion of your client base that could ultimately make or break your chances for success.
By welcoming card transactions at your company, you can bring in the money you need each day to stay financially afloat and turn a profit. You also avoid inconveniencing your customers by forcing them to only pay with cash or checks.
2) Speed and Security
It is easy to assume that cash in hand is always the way to go when it comes to making a fast profit for your business. However, when you want your money to be in your bank account as fast as possible, you can enjoy this prompt service by taking credit card payments. The credit card banks will deposit the money that you bring into your business without you having to make a cash deposit or fearing that your customers' checks will bounce.
Because credit card transactions are regulated by the PCI, or Payment Card Industry, you and your clients both are ensured of security. You can rest assured that you will get your money on time, and your customers enjoy knowing that their transactions with your business are regulated and monitored for fraud.
3) Collateral for Business Financing
One of the key advantages that comes with taking credit card payments involves being able to secure financing if or when you need to improve your cash flow. Your credit card sales can be used to obtain a merchant cash advance, a type of financing that can be much more convenient and easier to obtain than a bank loan.
In fact, a merchant cash advance offers benefits like:
- Easier credit approval standards
- Fast access to cash, typically within a day or two
- No set deadline for repaying the money
- Payments that match the pace of your business
If you were to accept only cash or checks, you would lock yourself out of this financing option and may face being turned down by a bank if you have bad credit or your business is still relatively new.
4) Gateway to E-Commerce
More business owners today want to operate both brick and mortar and online stores. If you want to expand to offering your products or services on your website, you can become a successful online presence by offering this payment method.
Most online shoppers today do not want to be bothered with sending in a check or having to take a payment to your physical store location. You can satisfy your clients and bring more money into your company by making credit cards one of the ways that people can use to pay their bills.
Your payment methods that you offer to your customers can determine how successful you could be. When you want to grow your business, please your clients, and have financing options available to you as well, you can do so by realizing these key benefits to welcoming credit cards at your company.