How Accepting Credit Cards Can Improve Any Small Business

Although most people are familiar with credit cards or own one personally, nearly half of small businesses do not accept credit cards as payment. This is a very large mistake. Customers who cannot pay with a credit card are not likely to take out cash just to make a purchase in a store. They are more likely to leave and so somewhere else. Accepting credit cards can improve any small business in several ways.

Increase Sales

The primary reason every small business should be accepting credit cards is because they are proven to increase sales. Credit cards give consumers more spending power than cash in a pocket. They are easy to use at any time. Stores that accept credit cards tend to have higher average orders amounts than stores that accept only cash. A credit card makes it very easy for customers to buy something on impulse while standing at the register or waiting in line. This is not possible for a person who has only a finite amount of cash available.

Branch Into Ecommerce Sales

Many small businesses today must maintain some type of online presence in order to remain competitive in the marketplace. One of the easiest ways to increase sales is to start an ecommerce site that allows customers to order products or services online. This can work even for local stores by allowing for customer pickups after ordering. Most companies offering credit card processing services also provide an online gateway that can be used to accept credit cards online. This can allow a business to grow quickly.

Create a Safer Storefront

The reality is that all small businesses need to worry about safety and crime especially when a storefront is open to the public. The one thing criminals are looking for is the cash kept in the register or safe. Stores that accept only cash are prime targets. The ability to accept credit cards can create a safer storefront. Less cash will be in the register at any one time. There will be less cash to process at the end of the day. Additionally, criminals will not find the store as attractive if credit cards are the predominant form of payment.

Reduce Fraud

Fraud is another problem that small business owners must face. Some people will attempt to write fraudulent checks or use counterfeit bills. Simple fraud can cost a small business a large amount of money every year. One of the benefits of accepting credit cards is that there are instant verification systems in place. The card is instantly checked electronically to ensure there is enough credit available for a purchase. The signature and name on the card makes it easy to verify the identity of the cardholder. This will lower fraud.