You’ve got to look at it from the customer’s perspective. A company that accepts credit cards is one that provides an expected convenience to its customers. Cash-only businesses are quickly becoming things of the past. If you’re still concerned about the rates and other factors that go into accepting plastic, you may also want to consider the benefits that you’ll be receiving in return.
On Investopedia.com, Amy Fontinelle writes that as long as shoppers are using their credit cards responsibly, they are better off paying for their purchases with them. There are a number of benefits to credit card use that she goes on to list. So let’s take a look at this list from the customer’s perspective. It just may change your mind about keeping your business in the cash-only column.
1. Points. Rewards programs generally go at the top of the list as to reasons why people use their credit cards. Paying with credit offers customers more value as they are getting something in return for using their cards. Unlike with cash, a purchase becomes something that can reward a credit card user. Generally, these points are used for travel rewards but there are many other benefits to the various point programs out there.
2. Cash Back. Some people aren’t necessarily interested in rewards points. At least, they’re not as interested in them as they are in cold hard cash. Many credit cards offer cash back programs that essentially allow for shoppers to earn money back on their purchases. Fontinelle writes that some credit cards help shoppers to earn anywhere from one and five per cent back on their purchases.
3. Safety. People love to know that they are protected. With so much identity theft and fraud going on these days, the use of credit cards ensures that shoppers won’t have to pay for purchases that they don’t make. While avoiding fraud altogether may not always be possible, credit card companies are known for setting up investigations for fraudulent charges so that their card members aren’t held responsible for them.
4. Grace Period. Credit cards provide customers with flexibility. They are not required to make their payments right away. Instead, they are given the option to pay for their purchases over time. This doesn’t affect you though. You get paid within a day or two of the transaction being made. So while you enjoy increased sales, the customer enjoys extra time to pay the purchases off.
5. Insurance. As Fontinelle points out, “most credit cards automatically come with a plethora of consumer protections that people don\’t even realize they have, such as rental car insurance, travel insurance and product warranties that may exceed the manufacturer\’s warranty.” Again, people like to be protected. Can cash provide customers with the same type of security? Of course not.
6. Building Credit. Our most important purchases in life – homes, cars etc. – require that you have a good credit score. Using credit cards allow for people to build their credit. Writes Fontinelle: “If you have no credit or are trying to improve your credit score, using a credit card responsibly will help your credit score because credit card companies will report your payment activity to the credit bureaus.”
Now that you see things from the customer’s perspective, can you think of any reason to not accept credit cards? We can’t either. Call Canadian POS Corporation at 1-877-748-2884 to start doing so today!