Canadian business owners who have been in business for a long time generally believe that they have the experience necessary to determine what is right and what is wrong for their businesses. For example, many of them still decide to close their doors on Sundays. It’s an old tradition that some still hold true to. Whether or not it’s a good business move to not be open on Sundays is a debatable discussion. At Canadian POS Corporation, however, we would err on the side of being as accessible to the public as possible.
Other “old school” traditions involve accepting cash only. Many veteran business owners feel that the fees involved with accepting credit cards and debit cards are too high to justify accepting them as methods of payment from their customers. It is, however, 2016. And Canadians practically demand to be given the option of paying with the pieces of plastic of their choice.
Are you still holding on to the “cash only” title for your business? If so, here are three reasons to drop it:
1. You get paid faster when you accept plastic. How many trips to the bank do you make in a week? In order to truly profit from the sales you make, you need to deposit your cash into your business bank accounts. Accepting credit cards and debit cards does that for you. Without having to visit your local branch, the money spent in your store is deposited within days of the transactions you make. Being plastic-friendly gives you quicker access to money in the bank.
“73% of businesses say that taking credit cards has improved their cash flow because payments are made immediately,” writes Carmela Samonte on Payfirma.com, “With credit cards, you ensure you get paid on the spot as soon as the sale is made. No more waiting in bank lines or dealing with bounced checks. Seeing your money faster means improved cash flow for your business.”
2. Being plastic-friendly results in increased sales. What business owner wouldn’t want to boost the sales in his/her store? Running a “cash only” business forces customers to spend only up to the amount of cash that they have on their persons – either that or they have to visit bank machines in order to take out more cash. When you accept credit cards and debit cards, visitors to your store are more to free to spend to their hearts’ content.
“Did you know that 66% of in-store transactions are made with a credit card?” asks Samonte, “That (is) a lot of potential revenue you could be missing! By accepting payments by credit cards, you’re giving your customers another way to pay. This can help build your business, strengthen existing relationships and attract new customers.”
3. You can sell your products online by accepting credit cards. It’s no secret that online shopping is rapidly growing in Canada. Earlier this month, we blogged about how Canadian business owners need to become more web-savvy in order to meet the growing demands of Canadian shoppers. And Canadian shoppers want to be able to make purchases directly from your website. If you only accept cash, you don’t make this possible.
“By taking credit cards, you’re not just limited to what you can see using a traditional terminal,” says Samonte, “New payment options are available to you which can increase your sales even more. Studies have shown that when people are given more payment options (beyond cash), they are more likely to make a purchase, join a loyalty program, and spend more per purchase.” She notes that e-commerce payments are among the new payment solutions you open yourself up to by accepting credit cards.