There are fewer Americans carrying cash today than ever before.
Only about 1 out of every 4 people brings cash along with them when they go out, and 41 percent of millennials believe that being forced to pay with cash for something is “inconvenient.”
That means that, if you run a small business, you should strongly consider accepting credit cards from your customers. Otherwise, you could potentially be missing out on quite a bit of business and lose money on a consistent basis.
There are so many advantages that you will enjoy when you start taking credit card payments from your customers.
Here are 9 reasons why your small business should accept credit cards.
1. It Will Open Your Business Up to More Customers
As a small business owner, you want to reach as many customers as you possibly can and have them shop at your store. You will have a hard time doing that if you don’t accept credit card payments from people.
There will be people who stop by your store to buy a product or obtain a service only to turn right around when they find out that you only accept cash. There will also be people who want to pay for your products or services but don’t have enough cash on them to do it.
Your small business should accept credit cards to avoid running into either of these scenarios. It will open you up to a wider customer base and drive sales to your small business.
2. It Will Prove to Be a Cheaper Option Than Cash
There are some small business owners who mistakenly think that it will cost them too much money to accept credit card payments from customers. This couldn’t be further from the truth.
While there are fees attached to accepting credit card payments, there are also fees associated with accepting cash and check payments, too. In fact, studies have shown that the “cost of cash” in the U.S. is actually much higher than many business owners realize.
Accepting debit and credit card payments from customers is typically much cheaper than accepting cash, even when you take the fees associated with doing it into account. It’s why accepting credit card payments makes perfect financial sense.
3. It Will Make It Easier to Get Access to Revenue
When your small business accepts credit card payments, you won’t have to wait very long to get your hands on your incoming funds. In some cases, you might see credit card payments deposited into your account on the very same day they’re made.
You’ll often have to wait several days for checks to clear before you can access your funds. So by allowing credit card payments, you’ll increase your cash flow dramatically and cut down on the time you have to wait to see profits.
4. It Will Reduce the Risk of Employee Theft
Most small businesses don’t have complex security systems in place. As a result, they’re at risk for employee theft, especially when they have a lot of cash lying around inside of their business.
When you allow customers to make credit card payments, you’ll have less cash inside of your cash register every day. This will cut down on the chances of an employee stealing a significant amount of money from you.
Small business owners don’t like to think about employee theft, but it’s something that clearly affects them. Workplace crime actually costs businesses upwards of $50 billion every year.
5. It Will Prevent You From Having to Deal With Bounced Checks
Bounced checks can be very problematic for small businesses. When a customer writes a check that they can’t cover, businesses have to try and hunt them down later to get things squared away.
Credit card payments can do away with this particular problem. When a customer uses a credit card to make a payment, the transaction will either be accepted or declined on the spot. This eliminates the issues that come along with bounced checks.
It also gives small businesses somewhere to turn if there’s ever a problem with a payment. They can contact a credit card company directly with an issue rather than relying on a customer to get back to them about it.
6. It Will Encourage People to Spend More Money Than They Planned
If someone walks into your small business with $25 in their pocket, that’s as much as they can spend.
It doesn’t matter if they come across an item that they just have to have. They’re limited to $25.
When you accept credit card payments from customers, you will, in essence, encourage them to spend more money in your store. They won’t be limited to just the cash they have on them.
This will lead to more revenue for your small business. It will help your customers get the products and services they want, even if they don’t have enough cash on them to buy them.
7. It Will Allow You to Sell Products and Services Online
If you plan to sell products and services online, your small business pretty much has to accept credit card payments. Just about all online payments are made using debit or credit cards.
Running an online store that only accepts cash isn’t really an option. So if you’re going to get involved in the e-commerce space, you should familiarize yourself with accepting credit card payments.
8. It Will Reduce the Amount of Cash You Keep Around
The less cash you accept from your customers, the less cash you will have on hand at any one time in your business.
This will prevent you from running into a problem if anyone ever tries to come into your store and steal from you.
Even if you are the victim of theft, there will only be so much cash that a person can steal from your store. It’ll prevent a theft from devastating your small business and putting you in a bad place.
9. It Will Make Your Customers Trust You More
When your small business begins accepting credit card payments, it will add a layer of legitimacy to your company. People will start to trust you more without you having to put forth much effort at all.
If you’re just starting out and looking to build positive relationships with your customer base, the least you can do is accept credit cards. It’ll go a long way towards proving your business is trustworthy.
Your Small Business Should Accept Credit Cards Starting Today
Bottom line: Your small business should accept credit cards. If you don’t, you could be missing out on some big opportunities and leaving a lot of potential profits untouched.
It’s easier than ever to obtain the equipment you’ll need to start taking credit card payments from customers right now.
Contact us for more information on how to get started.