1. Accepting credit cards captures the impulse customer – there are many people who buy on impulse. They see something, they like and before they think of the pros and cons of buying it, they have already charged it to their card.
The businesses that don’t accept credit cards, will accept payment by either check or cash or electronic transfer, which takes much more time. During this time (as is often the case), the customer might realize that they actually can do without the product – and the sale is ultimately lost.
2. Accepting credit cards can help acquire international customers – If you sell products online, or if you use EBay(R) to sell items, then accepting credit cards from your customers makes it easier for overseas customers to pay you more promptly – especially when compared to check payments or wire transfers (for large-ticket items).
3. Accepting credit cards makes it drastically safer and easier to get paid – businesses that accept credit cards bank on the high security system the credit card providers have established the world over. Though “headaches” can still occur from time to time, the risks are far more reduced when accepting payment by credit cards than any other form of payment.
Businesses that do not accept credit cards leave themselves open to several hassles through false checks, bounced checks, rejection of COD and so on.
4. Accepting credit cards can often cause the customer to buy more, and more often – businesses that accept payments by credit cards can often profit from a higher average order size due to the ease and flexibility of paying for something on credit. Hence, they allow their customers to stretch their limits of purchase while the businesses that do not accept credit cards cannot benefit from this aspect. People cannot buy more on fixed amounts of cash.
5. Accepting credit cards encourages the buyer to buy now and pay later – as well as benefiting from seasons discounts and rewards that the credit cards providers announce from time to time. This aspect is not available for those who buy on cash or by check, and hence these customers are not tempted to make more purchases.
In most cases, sales volume will increase for the business that accepts credit cards, simply because of the extra motivation they get.
6. Accepting credit cards is very convenient for the customer – if a customer has to choose between paying by credit card or cash, they will often choose to pay by credit card. This is because this payment method is extremely easy.
The business that does not accept payment by credit card will risk losing out on the sale. And consumers are becoming more and more “lenient” with smaller price points – make no mistake. It’s becoming increasingly common for purchases like a .50 sandwhich to be paid for with a credit card.
7. Accepting credit cards makes the sales process faster – the shopper will always opt to get the things they paid for as fast as possible. Since the credit card payment is instantly credited to the seller, the processing of the purchase is done much faster than through any other type of payment (except for cash).
Hence, customers will prefer to do whatever it takes to get what they want faster. Again, the business that doesn’t accept CC payments loses out.