Benefits of Credit Card Processing for Your Small Business
Credit cards have become one of the most typical methods for consumers to pay, with nearly 60% of U.S. consumers favoring cards over cash. Even though some businesses may extend credit to customers be means of invoices and personal checks, most retailers and other merchants typically extend credit through card payments.
Nonetheless, despite the universal use of plastic over cash, a study has shown that more than half of U.S. small businesses –about 55%– do not accept credit cards. Below are some of the advantages of processing credit card payments for your small business.
Legitimize Your Brand
By showcasing the logos of the credit cards you can process at your cash register or on your website, you acquire the cardholder’s interest and stimulate in them a sense of trust in your business. They trust the credit card brands sufficiently to have them in their wallets, and that trust goes on to the merchants who accept them. Trusting your business implies that they are more likely to buy from you.
Boost Cash Flow
Electronic transaction processing can help hasten the credit card payment acceptance. Rather than waiting for checks to clear, or 30, 60, or even 90 days for invoices to be paid, funds coming about through credit and debit card transactions are deposited directly into your bank account, generally within 48 hours. Electronic payments certainly enable faster payment cycles, which results in improved cash flow and decreased billing overhead – a vital advantage and welcomed relief for any small business.
Applying PCI compliant credit card processing features that have security features may have more expensive upfront costs, but in the long term, these features allow merchants to save a huge deal of money. Compromised customer data not only results in catastrophic loss on the consumers’ end, but merchants also are required to pay exorbitant fines. Observing PCI DSS standards helps keep both merchants and customers safe from fraud.
Transactions are faster specifically if your e-Commerce shopping cart has a ‘One-Click Buy’ function. This implies that not only you will save time; your customers will be able to fill one form upon registration and then start purchasing instantly by clicking the “Buy Me” option on your website without the hassle of re-filling credit card information forms. Visa, MasterCard, etc. e-Commerce merchant accounts should be able to process any type of Visa and MasterCards, plus many more other credit card brands (dependent upon the location and terms of the processing bank). It is vital to cover all your credit card holding customers, even if their credit card brand is a rare one.
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