In our last blog, we highlighted some of the biggest benefits of accepting debit cards in your store. But credit cards are not to be outdone. All across Canada, consumers use their credit cards to pay for their purchases knowing that there are additional benefits to using them. Collecting rewards points, receiving cash back and getting extra time to pay off balances are among the main reasons shoppers love using credit cards.
However, there are numerous benefits that merchants can enjoy when they begin accepting credit cards. Similarly to debit card acceptance, fraud can be easily avoided and sales are bound to increase. And there are several more advantages to add to the list!
Here are three big benefits of accepting credit cards:
Let’s be honest. A cash-only business appears small time. By today’s standards, a company that doesn’t accept credit cards isn’t considered one of the major players in the industry. When you display the logos of Visa and MasterCard in your front window and/or at your cash registers, you communicate to shoppers that you are no different than the big-named businesses that are all known to be plastic-friendly. Your acceptance of credit cards showcases your professionalism.
“By accepting credit cards, you and your company gain valuable credibility in the eyes of both current and potential customers,” says Kathy Farley in an article posted to LinkedIn, “When you, as a merchant displays, the logos of the credit cards you accept at your business location or on your website you create a certain level or trust between your business and your customer.”
When you change your approach and accept different methods of payment, you automatically open yourself up to a larger customer base. There are people who simply don’t walk with cash on their persons anymore. If you’re looking to grow your customer base, credit card acceptance is practically a must.
“Prospective clients may not have the up-front cash to pay your fees, but would appreciate being able to pay with a credit card (which they can later pay off with their refund),” notes Kristen Gramigna on TaxAct.com, “Accepting credit cards expands your potential client base.”
When you give your customers no choice but to only pay with cash, you limit the amounts they can spend. Debit cards enable customers to spend as much as they have in their bank accounts. A credit card allows a consumer to spend up to the amount of his/her credit limit. This is generally higher than the amount of cash they would normally have either on hand or in the bank. Credit card acceptance, therefore, helps you to increase your average transaction size.
“Shoppers feel in control when they use credit and debit cards,” writes Farley, “They like being able to complete transactions quickly and easily without having to run to the ATM for cash. Giving your customers another way to pay for their purchases helps boost the average sale. In fact, customers paying with credit cards typically spend about 20 percent more than when paying with cash or check. Consumers generally feel greater financial freedom with their credit card.”
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