4 Ways Accepting Credit Card Payments can Grow Your Business
We get it; the cost of doing business can sometimes feel like something you just can’t get ahead of. But, an important part of continuing to succeed with your customers and setting your business apart from competitors, is keeping up with the times. If you’ve been considering adding credit cards as an option for accepting payments, here are four great reasons to hop on the bandwagon.
Four Great Reasons to Accept Credit Cards
1 – Save Time and Money While Improving Customer Experience
You can save both time and money when you accept credit cards, while improving the experience your customers have with your business, so they come back again and again. It’s a competitive world out there, especially as a business owner, and it’s important that you keep up with the preverbal ‘Joneses’. Allowing your customers to pay the way they want is a huge differentiator.
Think about how you, as a consumer, prefer to pay for everyday items or services you receive. Likely it’s by whipping out your credit or debit card. Not only are you able to earn reward points from your credit card issuer, but it’s also a whole lot easier than remembering your routing and account number, or carrying around cash or checks. Chances are, if your business doesn’t accept credit cards, your customers won’t find it as easy to do business with you and could potentially go elsewhere in the future. Additionally, according to Community Merchants USA, research shows that businesses can increase their sales by more than double when they start accepting credit cards.[i]
2 – Increase Cash Flow while Shortening Funding Times
Increasing cash flow is important for business growth, and adding credit card acceptance is a surefire way to increase cash and speed up the time it takes for your business to get paid. The funding time for most credit card payments is much faster than other payment methods like ACH or check. When you accept a credit card payment on Monday, you can expect to see the funds in your bank account by Wednesday. That means more money in your bank account at any given time, especially compared to ACH which would typically deposit on Friday using the same Monday example.
3 – Avoid Stress by Streamlining Your Payment Processes
Credit card transactions give your business an immediate response that nearly ‘guarantees’ the funds will settle into your account. When your business processes a credit card payment you will receive an automatic response, known as an ‘authorization’ letting you know if the payment is going to be successful or not. Compared to ACH, where you won’t find out if the transaction is going to fund successfully until 5 days later, accepting credit cards provides a lot more cash flow security when you can count on the funds depositing as expected. An added benefit of accepting credit card payments is that your business can swipe credit card transactions, as compared to the manual entry required for processing ACH payments.
4 – Protect Your Business Against Unfair Payment Disputes
We hope that your business never has to deal with a payment dispute, but if you do credit card disputes are much easier to manage and potentially win than ACH or check disputes. If a customer disputes a credit card charge, your business will have the opportunity to provide receipts and authorization documents to the credit card processor so that they can determine if the transaction was properly authorized. The ACH dispute process is much less flexible and generally the only real way to resolve a dispute is between your business and the unhappy customer.
These benefits make accepting credit card payments a solution that your business shouldn’t live without. If you knew there was a solution to a business challenge that would keep your customers happy, improve the cash you have in the bank, and save time and hassle—wouldn’t you jump at it? Activating credit card acceptance can do all that, and more.