For some time now, consumer research has been providing evidence that retailers who accept credit card payments are likely to see a boost in sales. For example, a 2012 report by Javelin reported that 60% of shoppers preferred to use plastic to pay for goods – and that trend is increasing as cash becomes more rare on the high street and card technology becomes more secure.
Of course, some customers will have cash as a back-up, or will withdraw cash and return to a cash-only shop if they really like or need something, but they are unlikely to feel valued as a customer and may see the owner’s brand as behind the times. The real problem though, for those who have not yet embraced small business credit card processing, is the loss of existing and prospective customers to competitors. And there are even more reasons why accepting credit cards is a key to small business success.
Three Big Reasons Why you Should Consider Taking Credit Cards
Not only does taking credit and debit cards make payment more convenient for a large percentage of your customers, improving your customer service reputation along the way, it has also been shown to increase profits in three specific ways:
- Customers are more likely to buy on impulse if they are carrying a card than they are if they are carrying only cash.
- Customers with debit and credit cards are more likely to sign up to a loyalty scheme, helping to turn one-off and occasional buyers into long-term customers.
- Shoppers tend to spend more in total when they use a card to pay for their goods.
If running a business is mainly about attracting customers and increasing their lifetime value, it should now be clear why accepting credit cards is a key to small business success.
How Expensive is Small Business Credit Card Processing?
For a small business, credit card processing can seem a daunting step to take, and there is a persistent urban myth that taking debit and credit cards is too expensive to even consider. It is true that some providers of merchant services charge extortionate fees, but overall the market has now opened up so much that there are plenty of cost-effective options.
The first step for an interested business owner is to compare different merchant services providers on such things as cost, contracts, equipment, the application process and customer support. Speed Fund LLC make that part of the process as painless as possible by offering a free, no-obligation comparison service. This will help you see, at a glance, what kinds of merchant services charges you will have to pay with various different companies; these can include gateway fees, statement fees, transaction fees, address verification fees and, of course, the processor’s cut – or Average Discount Rate. In addition, there may be a minimum spend agreement in the small print which can make some providers unsuitable for low-turnover businesses.
Tailored Merchant Services as the Ideal Solution
Speed Fund LLC work with North American Bancard who provide a wide range of different options for small businesses, including flexible merchant services and free technology for bricks-and-mortar, online and mobile retailers. This enables Speed Fund LLC to set up flexible small business credit card processing packages which are tailor-made for the unique conditions of each business.
Many businesses all over America are waking up to the fact that the benefits of taking credit cards, whether via a POS machine on the counter or through a Phone Swipe terminal on a smartphone, significantly outweigh the dwindling costs. They now understand that, providing the right merchant services company is found, accepting credit cards is a key to small business success.