But if you’re a small business that doesn’t yet accept them, why is accepting credit cards worth it? There are some definite advantages to accepting credit cards, but there are also some disadvantages you should know about before making a decision. Overall, the pros outweigh the cons of accepting credit cards. And for the majority of business owners, it is worth it. Here’s why:
Accepting credit cards can also allow you to expand your product or service offerings. If you want to sell online, it’s difficult for consumers to pay for things with cash, especially if they don’t have a bank account. When you accept more forms of payment, you can increase your customer base both in-person and virtually. You also no longer have to create a merchant account to provide processing and credit card terminals. Business owners can use payment service providers like PayPal or Stripe to accept credit card payments. This is another way to accept more forms of payment, which adds convenience and can improve your customer base. Not only will you get more sales when you accept credit cards, but it can also improve safety for the consumer and business. It can be dangerous to walk around with large amounts of cash. If they see your customer counting dollar bills at the register, they could follow them out or wait around to take it from the register. Thieves are always looking for a distracted person or someone heading to the bank to make a deposit so they can make their move. When you accept credit cards, the transaction is processed and settled quickly. Within a day or two, you can have your funds in your account. The invoicing process can usually be integrated into your payment processing software, requiring you to click a few buttons to send it off in seconds. You’ll get a notification that the payment has been made by credit card, and you won’t have to worry about a late payment or a check lost in the mail. Setting up a merchant account is easier than it used to be. Once you’ve selected a payment process and negotiated your fees and terms, you’re ready to set up your point-of-sale system or payment gateway. For small businesses, a credit card reader may be the right move until you have enough volume to justify the additional cost of a terminal. For consumers, high fees and interest can add up quickly, causing them to pay much more than the original cost of products or services. Using a credit card can also makes consumers more likely to spend increased amounts of money. It also gives retailers a larger demographic of people who use credit cards for everyday purchases, especially those whose cards wrack up rewards
