Since they first appeared in 1950, credit cards have been growing globally in use.
They are a widely accepted way to pay for purchases, and nearly all banks supply either one of the main credit cards companies. They’ve continue to be accepted as the choice method of payment for most consumers.
So why won’t some merchants accept them as forms of payments?
Well, all large merchants have too (otherwise they wouldn’t be so large), but smaller businesses are reluctant to join on the bandwagon, dispute the long time it’s been traveling.
We’ll go over the reasons why your business should seriously consider taking credit card payments
The revenue for taking credit card payments!
Let’s look at some statistics:
Credit card purchase volume
- American Express U.S. credit purchase volume: $424.3 billion for 2011.
- Discover credit purchase volume: $106 billion for 2012.
- MasterCard U.S. credit purchase volume: $534 billion for 2012.
- Visa U.S. credit purchase volume: $981 billion for 2012.
Credit card users surveyed in 2012 who used their cards to buy:
- Clothing: 67 percent
- Gas: 64 percent
- Food: 64 percent
- Travel: 62 percent.
These reveal the amount of money people spend on their purchases.
Building companies and small contractors are likely candidates that draw in large volumes of payments through credit cards.
It may seem like an oxymoron, to spend money to make money. In the world of business that line keeps ringing true.
If you value your business and want to see them grow into higher volume bracket, you’ll have to start taking credit cards.
Credit cards reveal something interesting about human nature, specifically how much more likely people will spend more money with a card, than cash.
It could be because they know they’ll be able to pay it off in smaller amounts, allowing them to make large transactions, since they don’t need to have all the cash up front.
Or maybe there’s something psychological about paying with cash that just hurts. Maybe because it’s a physical product you can see diminishing from your hand.
Regardless, people tend to spend more money when using a credit card.
Isn’t that bad?
If they didn’t have a credit card, maybe they couldn’t get the hardwood floors they’ve wanted for years, or book a vacation through your small travel agency.
If they’re willing to spend more money with a card, you should help them buy what they want!
You’ll attract more customers
While you may be tempted to dwell on the small percent of money you’ll lose on fees by processing credit cards; the truth is you lose more money by not accepting them.
With customer and client acquisition being the most expensive cost to a business, you need to do everything in your small businesses power to ensure this process gets easier and less costly. By not accepting credit cards, you essentially cut off a large chunk of your potential customers by making it difficult to spend money at your store.
Who carries large amounts of cash anymore (unless they’re drug dealers)? Or their check book? (Our grandmothers do, bless their hearts).
By only taking check or cash, customers would have to either have to go get cash from an ATM (where they’ll have to pay at least a $2.50 or $3.00 fee), or have to write a check (which they may not have on hand), which you’ll have to deposit and wait to clear (hoping it doesn’t bounce).
You see why everyone is using a card?
By not accepting credit cards, you’re pretty much flipping them the bird.
They’ll just go to your competition.
Starting to see the value in accepting credit cards?
It’s a cut throat world for merchants, and the sad truth is, merchants who will not accept credit cards, will be left in the past.
Want to step into the future?
If you’d like to learn more about what our company can do for your business, or would like a free consultation, contact us here.