Credit and debit cards are more in the spotlight now than cash. With just a swipe or tap, you can buy anything from a cup of coffee to major appliance purchases in one go.
Technology is making it easier for any type of business to manage and accept credit card transactions, however, not all small businesses are accepting credit card payments yet. Cash is still the most commonly accepted form of payment for them. What’s holding these entrepreneurs from upgrading to a credit card payment system?
Mainly, it’s the fees but the benefits outweigh the cons. If you are thinking of expanding your business’ payment options, SumUp is a company that provides credit card readers for small businesses like you.
Here’s what you need to know how accepting credit card payments can actually boost your small business:
- It can broaden your customer base. If your business has a “cash only” option, you are unconsciously putting a limit on your potential customers. A lot of people only carry $20 or less and some don’t even carry cash at all. Plus, if you do business online, it can even break down the global barrier as you can potentially accept credit card payment from anyone in the world.
- Convenience. Customers would prefer to buy things now than to wait, so having a card processing system allows the customers instant gratification. They can buy the items now and just pay for it later.
- You can take advantage of impulse buying. Credit cards encourage this and it’s also good for the business. If your business is still cash only, you are losing on a customer base that doesn’t have cash in their wallet but still don’t mind making a purchase at that time.
- Minimize security risks. Carrying large sums of cash can be quite dangerous for both the customer and the business. The less cash you have, the less your chances are to be targeted by thieves or corrupt employees.
- Improved cash flow. Accepting credit card payments in your business increases your cash flow exponentially. Since payments are processed directly into merchant accounts, you reduce the time and expenses of having it taken care of at the bank. Your business no longer has to wait for checks to clear or invoice customers and wait for the payments.
- Makes your business more competitive. Always remember that business is about competition. Accepting credit card payments can give your business an edge over to those who still stick with cash only transactions. Don’t let people skip over your business just because you don’t have a credit card machine for easy payment options!
If you are considering on expanding your payment options, accepting credit cards is an excellent way to do so. It will be a small business expense. If you are worried about this, there are credit card processing services available that are simple and can work within your budget.
For a quick overview of SumUp, here’s a short video on our Money 20/20 experience.