There are a lot of benefits to accepting credit cards. So, what is stopping your business from doing the same? Research shows us that there are several benefits to accepting credit cards. You could see an increase in customers and their average spend. Accepting credit cards decreases theft and can even improve how potential customers perceive your business. Here are five reasons your business should accept credit cards in Kansas: 1. More customers shop with you 2. Customers spend more 3. Improves credibility of your business 4. Speeds up collections 5. Decreases theft There are so many benefits when you decide to accept credit cards at your business! Keep reading to learn more.
Increase in customers because you do not constrain them on payment options
Most people do not carry cash on hand, or at least, not a lot of cash on them. In one survey, 50% of respondents said they carry cash less than 50% of the time. Most said that when they do carry cash, they carry less than $20. Customers that do not carry cash will not be able to make a purchase at your store. Customers that do not carry a lot of cash might not want to spend all of it at your store, even if they can afford to do so.
Limiting customers to only paying with cash at your store is a real inconvenience. No one wants to feel constrained. People use credit cards for a number a of reasons. It might be because they do not carry cash, or they just want to use the perks of their cards. They may not have the funds at this moment but will have it with tomorrow’s paycheck. Overall, people like using credit cards. They are convenient. Seeing that a store only accepts cash turns away every single potential customer that does not have twenty dollars in their pocket.
Customers spend more when using a credit card
There is a bunch of research that shows customers spend more when they use credit cards. One study shows that credit card shoppers spend a lot more than cash shoppers. Credit card shoppers are likely to spend up to 100% more than cash shoppers!
There is a reason budget blogs always recommend people shop with cash to save money. There is something in the human brain that tells us to spend less when we can visually see our cash. When we use cash, we see that we have a finite amount of money. People do not like to see themselves departing from their cash. People are more comfortable using a plastic card because they cannot see its exactbalance. Consumers are programmed to use their card more freely at your store, rather than cold hard cash.
Do you not want customers to spend more while at your store?
Improves credibility of your business
Two years ago, a friend told me to, “avoid restaurants that have ‘cash only’ signs because it means that they have issues with the health department and close a lot”. Of course, I told her that was nonsense, and explained why many stores do not accept cash. We talked it out, but the issue still remains. Unfortunately, there is a stigma towards businesses that only accept cash. Sometimes stores that do not accept credit cards are not taken seriously. We see this with farmers markets, food trucks, and artists. Of course, these businesses are all legitimate. We just see that sometimes there is a stigma towards these businesses because they are commonly cash only.
Potential customers worry that the owner is just doing this business as a hobby or will close soon. Customers may perceive the store as old-fashioned or unprofessional. Credit card terminals are so common, that when a store is missing one, customers notice. It is not just the absence of a credit card machine that affects perception. There is something about handwritten “cash only” signs that is not appealing. When they are written in red, or taped in multiple locations, they can feel aggressive. Not having a credit card machine sends a message about the company to potential customers. Unfortunately, it is usually a message of concern or worry. Having a credit card machine can instantly boost customer perception. Think of accepting credit card payments as a strategy for small business.
Speeds up the collections process
You send the bill to your client with a return envelope, and then the wait begins. You have to wait for the mail to send your letter. You have to wait for the client to open it and read it. You have to wait for them to write the check. You then have to wait for their return envelope to arrive at your business via the mail system. You then have to pray that the check is a good check.
Who on earth wants to wait a week, or more, on payment from your clients? Accepting credit cards can cut this time down immensely! Imagine this: you send your client their bill and call them. They provide their credit card information over the phone, you process their credit card, and then the funds are in your bank account within one or two business days. Accepting credit cards makes the collections process much faster.
You would no longer have to wait on customers to remember to send a check. Neither you nor your customer would have to worry about losing the check in the mail. You would no longer have to worry about if a check is good or not. Best of all, you can save a lot of money on postage!
Decreases internal and external theft
We already know that criminals are less likely to rob a place that does not have a lot of cash. Criminals want easy money that they can take and flee with quickly. If your store only accepts cash, they can bet that your cash register is full. If a store accepts cards, criminals are less likely to want to rob that store. They take the chance that there is less cash in the register.
Credit cards also decrease internal theft. Have you had money mysteriously vanish at your store? It is pretty easy to slip $20 into your pocket. No one wants to admit it, but sometimes when cash goes missing, the thief is someone that works there. Whether you are asking, or you already know who it was, it can be a difficult conversation to have with an employee.
Decreasing the amount of cash can decrease the amount of external and internal theft your company faces. It removes the temptation to pocket a few dollars here and there.
Of course, there are other reasons for accepting credit cards. Many businesses choose to accept credit cards because they want to compete with other stores, do business online, or decrease the chances of getting a bad check. If your competition accepts credit cards, you definitely want to start too. You would not want to lose your current customers to your competition. If your competition does not accept credit cards, there is opportunity. You could get a leg up on your competition by accepting credit cards. Have you ever dreamed of selling to customers outside of your town? You might be wondering how to accept credit card payments online. If you set up an online store, you could find customers across your state, country, or even the world. If you are tired of getting bad checks from customers, you could start accepting credit cards instead. This will greatly decrease the chance of getting a bad check. These are all valid reasons to start accepting credit cards.
If you would like to start accepting credit cards, then you would need to work with a payment processor. Payment processors are companies that can set you up with a credit card machine. They can also process payments made via card at your store. For more information, check out this helpful article: https://acumenconnections.com/2020/06/08/what-are-payment-processors/. There is a helpful graphic and a ton of information on credit card processing.
A lot of people talk about the cheapest ways to accept credit card payments. The good news is that it can be surprisingly affordable to start accepting credit cards in Kansas. Merchant processing is easy to set up for your local business