How Merchant Credit Card Processing Can Save Businesses
By Christine OKelly
When businesses start up, one decision they often face is whether to use merchant credit card processing. Many see it as nothing more than an extra hassle and expense. Unfortunately, these businesses miss the true benefits of merchant processing. In many instances, the decision to accept credit cards can make or break a business.
Consumer Habits
With the proliferation of credit cards in today’’s society, many consumers have abandoned cash in favor of the added security and convenience. Some customers use credit as part of their budget to help manage their cash flow. Others prefer to use plastic because they receive rewards for using them such as loyalty points or cash-back incentives. If you don”t use merchant credit card processing in your business practices, you”ll find a large percentage of the population will not come to you for products and services. Accepting credit cards for payment is part of good customer service in this respect.
Administrative Costs
If you only accept cash or check, it will take extra time to count and record. You have to dig through receipts to resolve any discrepancies, which can also create additional hassles. You also will have to take time out of your schedule to take these funds to the bank each day. When you get the money there, there is still no guarantee you are finished with it since the checks can bounce, costing you a lot of money and time to sort out. With merchant credit card processing, you only need to take your totals and complete the day’’s worksheet.
Processing Fees
Many business owners fret about the added cost involved when accepting credit cards, as well as the processing fees tacked onto each sale. There is no denying that a cash-only policy avoids fees and prevents costs incurred when setting up a credit card processing system. However, this excuse doesn”t look at all sides of the issue. When customers pay using debit or credit card, they will often spend more, meaning you only have to pay a minimal fee for an exponential increase in profits. In fact, recent consumer studies on cash vs. merchant processing of credit cards indicated sales increased by as much as three times when consumers use credit cards.
Marketing Opportunities
By accepting credit cards at your place of business, you have the chance to use it to the fullest advantage. For example, you might offer customers a particular item at a discounted price or offer a small discount to improve sales overall. For the consumer, paying with plastic often makes them feel more at ease because the purchases are protected. When this happens, you are better able to learn more about your customers and improve their chances of becoming loyal to you or your business. In several studies released throughout the last few years, consumers say that accepting credit cards makes your business appear more modern and trustworthy.
Merchant credit card processing does have some fees associated with it, but as you can see, you will more than make up for the additional costs. For many companies, these additional sales and benefits can carry a company through a tough month.
About The Author
Christine O”Kelly is the author for BluePay, a merchant processing provider for businesses of all sizes from around the world. They are leading experts in merchant credit card processing, echecks, and more for quick and easy payments.
