In 2023, we live in a very fast-paced economy. As a result, it is essential for businesses to be able to accept credit card payments. Not only is it convenient for customers, but credit card acceptance can also significantly increase revenue for business owners.
How does credit card acceptance generate greater revenue for merchants?
It encourages impulse buys.
Customers are more likely to make a purchase on a whim when they know they can easily pay with their credit cards. By accepting credit cards, merchants can capture these impulse buys, leading to increased revenue.
“Credit cards encourage impulse buying and improve your cash flow,” writes Elie Y. Katz on Forbes.com, “Shoppers like being able to check out quickly and easily without having to write a check or make an extra trip to the ATM (which limits their purchasing to only their available funds). An MIT study indicated that customers tend to spend an average of 83% more when they’re paying with credit cards. This includes a high rate of impulse purchases.”
It enables bigger purchases.
Customers are more likely to make larger purchases when they know they can spread the cost over time by paying with their credit cards. This can lead to increased revenue for merchants, as customers are more likely to make bigger purchases than they would if they were limited to cash or debit.
It increases customer satisfaction.
Customers expect to be able to pay with their credit cards. If a merchant doesn’t accept credit cards, it can create many negative experiences. By accepting credit cards, merchants can meet customer expectations and create positive shopping experiences that can lead to repeat business.
It simplifies payment processing.
Processing cash can be time-consuming and expensive, with the need for security measures such as cash registers and bank deposits. Credit card acceptance simplifies payment processing by allowing merchants to accept payments electronically. It reduces the need for cash or cheques.
“Credit card transactions are processed and verified electronically, and settled quickly,” notes Katz, “Proceeds are typically deposited the next business day, or sometimes even same day, into your bank account. You won’t have to handle as much cash, reducing theft and security concerns in your store.”
It boosts online sales.
In today’s digital age, more and more customers are shopping online. By accepting credit cards, merchants can tap into this growing market and boost online sales. Credit cards are the preferred method of payment for online shoppers. By accepting credit cards, merchants can reach a wider audience and generate more revenue from their online stores.
It reduces fraud.
Credit card companies have sophisticated fraud detection systems in place, which can help to prevent fraudulent transactions. By accepting credit cards, merchants can benefit from this added layer of protection, reducing the risk of chargebacks and fraud.
Do you accept credit cards at your place of business?
At Canadian POS, we believe there is no easier way to do so than with the revolutionary Poynt Smart Terminal. This Android-based terminal has a suite of business management tools that allow you to keep track of all your orders, reports and inventory in one place. For more information, please don’t hesitate to call us at 1-877-748-2884 or send us a message on our Contact Us page!