1. Convenience - You probably
already know that accepting alternative forms of payment
like credit and debit cards helps make it more convenient
for people to pay you. This will increase your sales and
profits. Some studies say by 30 -100% or more (Visa International).
2. Increases Your Credibility - Did you also know
that advertising your acceptance of credit and debit cards
increases your credibility? It's true. The public knows
that a Merchant Account status is not always easy to get
and will look at you as more of a solid company - here
to stay. "Hmmm ... doesn't accept credit cards? Is there
some kind of credit problem I should know about this company?"
3. Increases Your Average Sales Order - Were you
aware that your AVERAGE SALE AMOUNT GOES UP when you accept
credit cards? Studies prove (and I am sure it's true of
most of us) that when we are ready to make a purchase
and we are paying with a credit card we are more inclined
to purchase the "upgrade" product or service. Human nature
seems to cause most of us to be inclined to purchase the
"better model or service upgrade" when we can finance
the purchase with a credit card.
4. Impulse Purchases Go Up - Did you also know
that your willingness to accept credit cards also causes
impulse purchases to go up? Customers are more likely
to purchase when they can use a credit card versus paying
with cash or a check. For some reason human nature - especially
in the US - causes us to think paying on credit is easier.
5. Increases Cash Sales - I bet you didn't know that
the mere presence of credit card logos at your business
location increases CASH sales. A fascinating study was
explained in the book Influence by Robert Cialdini.
This scientific experiment documented that the mere presence
of Master Card/ Visa logos will increase cash sales by
as much as 29% in controlled studies - even though credit
cards were not used! If your business accepts cash, this
is an extra bonus of accepting credit cards and advertising
that you do.
6. Cuts Back on Bad Checks and Collection Costs. -
By accepting credit and debit cards through a reputable
Merchant Account Provider, credit cards orders will be
screened for fraudulent transactions. Some providers,
like Cardservice International, will take extra steps
on address verification, verifying the extra four digits
on credit card, and blocking selected credit card numbers,
internet protocols, names or addresses. These are extra
safety measures you can take to find peace of mind that
the orders you are receiving - particularly on the internet
- are legitimate. When a customer is a "slow pay", a common
collection technique is to call the customer and suggest
they give you their credit card information over the phone
right then to clear up the default. Without this option
you would typically have to wait to see if the customer
sends you a check like they said they would.