4 Secret Benefits of Accepting Credit Cards
We all have those daunting tasks that somehow keep getting put on the back burner. Whether they’re the most time consuming, the most expensive, or the most mentally draining, we find a way to avoid them. As Mark Twain would suggest, wake up every morning and swallow that frog. Get the hardest task of the day over with first, especially if that task is finally accepting credit cards! If you’ve been avoiding it because you think accepting cash and checks are good enough, then think again! Read carefully how the 4 secret benefits of accepting credit cards can boost your business.
Your Sales Will Increase
Businesses who accept credit cards see their average sale amount increase. Financial guru Dave Ramsey says,
“You will spend more if you use credit cards. When you pay cash, you can feel the money leaving your hand. This is not true with credit cards. Flipping a credit card up on a counter does nothing to you emotionally.”
Do you want your customers to feel emotional pain when paying you by requiring them to pay with cash or checks? Or would you rather them have an easy and happy experience playing with a card so they come back again? This lack of emotional pain associated with credit cards results in consumers spending 12% to 18% more when paying with a card instead of cash. Some industries see their average ticket size increase by 40%.
A survey found that when businesses started accepting credit cards, over half of the companies increased their sales by at least $1,000 every month. 18% of companies increased sales by over $20,000 per month!
You, Will, Lose Customers if You Don’t
Could one of the benefits of accepting credit cards be in the customers you don’t lose? A 2017 TSYS survey found that only 12% of customers prefer cash to debit or credit cards, according to creditcards.com. People like seeing the brand of their trusted credit card in the window or on the website of a possible purchase location. Because the majority of people use their credit cards for financing, they see cards as a lifeline. If you don’t accept that method of keeping their heads above water, they might not even consider you for a purchase. The worst part is you may never even know it.
It Establishes Credibility
What sort of business comes to mind when you think of a “cash only” sign? Probably something similar to a street vendor or a business ran out of a basement. This isn’t associated with credibility by any means. There’s a reason Google finishes your “is cash only business” search with “legal?”. In fact, according to another research study, 90% of shoppers say they require that clothing stores, restaurants, grocery stores, and hotels accept the card in order to shop there. Shouldn’t you aspire for the same credibility as these everyday shopping locations?
It’s Actually Cheaper
This is one of the benefits of accepting credit cards you probably haven’t heard of before. That’s because most surveys and skeptics don’t consider soft costs. Consider the time and gas costs like driving to and from the bank to make deposits, employee cash theft, robberies, simple miscalculations, and bounced checks. Accepting cash and paper checks is actually more costly than processing credit card payments. Credit card payments are securely deposited directly into your business checking account typically within 1 business day by your payment processor. This saves you time and boosts business cash flow.
The Benefits of Accepting Credit Cards Outweigh the Cons
You may be tight on money, time, or motivation. However, an informative phone call with a PayFrog sales rep could change all that. Your business deserves the ten minutes you’ll spend on the phone learning more about accepting cards, so take a PayFrog leap of faith and call today.