Why Credit Card Fees are a Positive Investment
Depending on your industry and credit card processor, accepting credit cards can cost you two to five percent of every card sale. Many business owners see this number, realize it can add up to thousands of dollars per month, and decide to not take credit cards. The truth is that credit cards have benefits that far outweigh this cost.
Avoiding Lost Sales
About 66 percent of consumers use debit or credit cards when paying for merchandise or services. Many people carry only a small amount of cash, and 16 percent don’t carry cash at all. If they know a business is cash-only, they may decide to skip it instead of heading to an ATM. Taking cards ensures you don’t lose customers because they perceive shopping with you as inconvenient.
Consumers paying with credit cards spend an average of 12 to 18 percent more than those paying with cash. This is due to a number of reasons including the psychological impact of having to hand over physical cash as well as consumers not having to worry about if they have enough cash on them.
In short, you aren’t choosing between getting $100 cash or $97 after credit card fees. You’re choosing between $100 cash or $115 with a credit card.
Swiping a credit card takes less time than a customer counting their pennies and a cashier making change. This helps you get customers through the line faster increasing their satisfaction and reducing the chance of people leaving because the wait is too long.
Make Your Accounting Easier
Accept Payment Plans Without Risk
If you sell more expensive items or services, your customers may ask about payment plans. If you choose to offer a payment plan on your own, you will spend time and money trying to collect and likely still end up with people defaulting.
By taking credit cards, your customers get more time to pay, and you still get paid in full within a day or two. Even if someone doesn’t pay their credit card bill, you still get paid in full because the credit card company takes on all the risk.