Cash Isn’t Always King: Accepting Credit Cards Can Increase Your Business

increase business

If you don’t already accept credit cards at your business, you are missing out. There are many advantages to accepting payments via credit card, but the most notable of them have a positive effect on your bottom line. Here’s how:

1) Increase Sales Overall

The simple act of accepting credit card payments can give a significant boost to your business.

Research shows that sales can double or even triple versus current sales. One survey, sponsored by Intuit, found that 83% of small businesses that accepted credit cards saw increased sales. Fifty-two percent of those surveyed made at least $1,000 more a month and 18% made at least $20,000 more a month.

2) People Spend More with Cards

This is probably not a new concept to you: there is seemingly endless research that shows it’s easier to spend money with a credit card than with cash. The pain of paying is greatly diminished when handing over plastic instead of cash or a check, so customers spend more. Credit cards also increase impulse purchases (and tips for those in the service sector, such as cab drivers, waiters and other). Why? Simple: consumers are not tied to what is in their wallets at that moment.

3) It’s Just Good Customer Service

Cash payments are decreasing. Almost one of every three purchases is made with a credit card, according to Visa. Providing the option to pay with a credit card is becoming less a courtesy and more an expectation. Customers are more likely to do business with you if you accept the form of payment that offers them the most convenience and flexibility. Especially when dealing with big-ticket items, consumers appreciate the ability to pay up front with a credit card and pay off their purchase over time.

4) Broaden Your Customer Base

Credit cards are like a global currency. Because purchases are automatically converted to the appropriate currency, selling internationally with credit cards is easy for both the buyer and you, the seller. If your business has an online presence, the world is your market, not just your city or town.

5) Give Your Business an Instant Facelift

Accepting credit cards gives your business a better image with greater credibility. In the eyes of the customer, it means your business is established and trustworthy.

6) Increase Cash Flow

Credit card payments take the waiting out of getting paid. No more waiting weeks for checks to clear, and no more waiting weeks or even months for a payment after sending a bill. Instead, your funds are deposited automatically and directly to your bank, usually within a few days, giving you faster payment cycles and better cash flow for your business.

7) Time is Money Too

Credit card payments are more efficient and less time consuming. The payment process is automated: automatic approvals and automatic deposits into your bank account. That means fewer trips to the bank, no invoices to print and mail and no more dealing with bounced checks. With the time you save, you can focus on other important aspects of your business—like making even more sales.

Sometimes, getting the process started to get your business ready to accept credit and debit cards can be complicated. To make it easier, Community Merchants USA has put together free tools and resources on everything you need to know about credit and debit card acceptance. Check them out and add more value to your business!

Credit Card Photo via Shutterstock

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Anita Campbell Anita Campbell is the Founder, CEO and Publisher of Small Business Trends and has been following trends in small businesses since 2003. She is the owner of BizSugar, a social media site for small businesses.