8 Reasons Your Business Needs To Accept Credit
Credit cards became popular with consumers in the 1980s and 1990s, but businesses were initially hesitant to accept credit. Over 20 years later, things have changed dramatically, with roughly 200 million credit card users around the world. Now’s not the time for your business to sit on the sidelines when it comes to payment options.
Why Should You Accept Credit Payments?
Credit cards haven’t just increased in popularity with everyday consumers; they’ve also become more widespread with business owners. Modern payment options offer advantages to a variety of companies, from small businesses to B2B industries. They help retail stores, restaurants, general contractors, e-commerce companies and countless other businesses.
1. Today’s Consumers Want Payment Flexibility
These days, shoppers demand options. They want to be in control of the decision-making process. That’s why so many businesses offer a wide variety of goods and services at different price points.
By offering the same flexibility to your clients when it comes to payments, you empower your customers. They can choose whether to pay the entire balance at once or break it up into more accessible monthly payments.
2. Payment Options Are Part of Offering the Best Customer Service
When you accept credit, you increase your business’s reputation for putting the customer first. Credit cards, mobile payments and online payments are far more convenient for many people than paying by cash or check. You make their lives easier by offering options for credit.
This goes for B2B companies just as much as retailers. Your corporate clients also appreciate the accounting simplicity of paying with credit cards. There’s no confusion over lost checks or late billing. Every transaction can happen practically instantaneously.
3. Your Sales of High-Value Products Increases With Credit Payments
Implementing credit solutions for your business can have a positive effect on sales, especially where big-ticket items are concerned. If you require clients to pay the full purchase price with cash or check, many families may decide not to buy expensive products. By breaking those prices into smaller monthly payments, those items are within reach of many more households.
4. Credit Generates Trust
Believe it or not, modern consumers trust payment providers more than they trust independent businesses. If you allow customers to pay by credit, part of that feeling of trust extends to your business as well. New clients feel more comfortable buying from you without questions because they can use their preferred card.
5. Credit Cards Are Good for Your Company’s Cash Flow
Some business owners are confused by the whole premise of breaking down lump sums into smaller monthly payments. It’s important to understand that installment plans are only from the point of view of your customers. When you accept credit, your business receives the full payment amount a short time after the transaction gets approved, usually within a few days.
If you’re a small business owner, this speed can be a huge help for your monthly finances. Instead of worrying about bounced checks or collection agencies, you get your funds quickly. That way, you have money to pay off your suppliers and cover other operating expenses.
6. Credit Options Help You Avoid Losing Customers
Now that many people use the internet to search for products, the playing field for business competition has increased. Your business needs to keep up with trends so you can stay ahead of competitors. Payment options play an important role in commerce, both in physical store locations and online.
Put simply, if you don’t accept credit, you’re going to lose potential customers. Those clients will simply find a competitor that provides the options they want.
The opposite is also true: If your business offers more attractive payment programs than the competition, there’s a good chance you can draw in clients you wouldn’t normally have gotten. That’s why many retail stores choose to offer special credit-oriented offers, such as 0%-interest programs and options to buy now and pay next year.
7. Credit-Based Payments Are Key for Gen Z Shoppers
If your target market includes members of Gen Z or Millennials, you should implement high-tech credit options ASAP. These age groups have a strong affinity with technology and mobile payments.
Bringing your business into the 21st century when it comes to credit can help you appeal to younger shoppers effectively. You can still offer the same high-quality products and brand values that set your business apart but with the power of modern payments to revolutionize your services.
8. Credit Encourages Impulse Buying
As a business owner, encouraging impulse purchases is a good thing. Being able to make a sale in person and online often depends on reaching your customers’ emotions as much as providing information.
Your role is to show clients the solutions to their problems and the products that help them. When it’s time for a gentle nudge toward a purchase, you don’t want payment issues to make the excitement fade.
When you accept credit, clients can complete purchases quickly. They can enjoy the feeling of finding exactly what they need, whether your business sells bespoke clothing or performs home remodeling.
How Much Does It Cost To Accept Credit?
There’s no reason to hold back from all the opportunities modern payments provide because of apprehension over transaction costs. Today’s credit card rates for business owners are typically low. The benefits your company receives far outweigh the minor expense associated.
What Payment Options Should You Offer?
There are many credit-based payment methods available to consumers these days. Here are some of the most popular:
- Credit cards (Visa, American Express, Discover, etc.)
- Store cards and rewards cards
- Co-branded credit cards (American Airlines, Hilton, etc.)
- Online payments
- Mobile payment apps
- Third-party customer financing
The right payment platform for your business depends on your needs. For example, coffee shops benefit immensely from point-of-sale terminals, mobile payments and credit card readers. Any company looking to sell products via its website needs to use card-not-present (CNP) systems or other online payment options for credit card payments.
How Can Your Business Accept Credit?
At PaymentClub, we can help you get started. Now’s the perfect time to accept credit. Take advantage of the amazing benefits of modern payment technology. Contact us to learn more.