Avoid Loss with Merchant Services

As the world’s marketplace becomes more and more global, business owners everywhere must look for new ways to remain profitable and competitive. Accepting credit cards is a simple – and profitable – way to attract new customers and grow both your bottom line and your customer base. But instead of looking at the myriad ways merchant services can help your business grow, consider the ways in which NOT having merchant services can cause your business to become stale and stagnant:


Loss of customers


No matter what the economy is like, consumers love their credit cards. Credit cards offer consumers broad advantages, including flexibility, convenience, and security. Unlike cash, credit cards allow consumers to make purchases of large items and to fit those purchases into their monthly budgets by paying off the balance over time. As the balances are paid off, consumers know that credit will become available to them again for future purchases, making them an ideal solution for customers of all income levels.


Credit cards also eliminate the need for careful, to-the-penny budgeting when shopping. Unlike cash purchases, which are limited to the amount of money in your pocket or purse, credit cards allow consumers to make decisions as they shop, and can replace large amounts of cash needed for major shopping trips.


In addition to being more convenient, this last factor also helps consumers feel more secure. While cash can be easily lost or stolen – gone for good – credit cards can be replaced if stolen or lost, and consumers will not be held responsible in most cases for charges made by someone who has stolen the card.


Today’s consumers also know the value of a healthy credit report and score, which can be used to approve or deny future credit, including home and auto loans, as well as insurance and even job opportunities. They also know that reliable use of credit is one of the surest ways to quickly build a robust credit history.


And finally, today’s cards can offer attractive advantages to those who use them in the form of rewards. As a result of increased competition among cards, many issuers offer cash rewards, free hotel stays, airline miles, or merchandise to card users who make regular purchases on their cards, meaning consumers are using their cards for all types of purchases, from large to small, to earn these valuable rewards.


Loss of profits


In addition to the profits your business will see as the result of attracting – and retaining – larger numbers of customers, credit card users also make many more impulse purchases than cash buyers, and those impulse purchases are of a much higher value than those made by customers using cash.


In addition, spending studies show that consumers who use credit cards shop more frequently and make more expensive purchases than those who use cash. They also tend to buy more big ticket items, which can help you accrue profits and also help keep inventory moving.


Loss of Credibility


Studies show that customers actually have a significantly higher level of trust in businesses that accept credit cards over those that do a cash-only business. In fact, when interviewed, consumers indicated they believe businesses that accept credit cards are more established and reliable than those that accept only cash.


Businesses that display the logos of the cards they accept receive an instant level of credibility and trust, even when those businesses are new. Studies also show consumers believe that businesses that accept credit cards have undergone more rigorous financial scrutiny by card issuers and other financial institutions, and hence believe them to be more credible and dependable. Especially if your brand is relatively unknown, accepting credit cards is a great way to gain instant credibility among current and potential customers.


Loss of cash flow


Establishing a merchant account and accepting credit cards means the proceeds from those sales are deposited into your account each day, which means your business has more cash to draw from. Unlike checks which can take many days to clear – and sometimes fail to clear – credit card transactions are processed and approved when the sale is finalized.


And unlike cash and checks that can be lost or stolen, credit card proceeds are securely transferred automatically by your merchant account provider directly into your business bank account. That kind of regular and secure cash flow can help your business thrive and grow substantially.


These are just a few of the ways your business could lose out if you neglect to accept credit cards as a form of payment for your company’s goods or services. Merchant account providers today offer attractive terms and fees and a simple online application process that can have your business accepting credit cards in no time at all. Take some time today to explore the advantages of merchant services, and take the next step toward helping your business become more competitive and profitable.