In our last blog, we highlighted some of the most severe impacts of running a cash-only business. We pointed out that not accepting credit cards and debit cards presents a major inconvenience to most shoppers. People don’t like having to leave stores in order to locate ATMs to withdraw cash from. Most shoppers who are forced to leave cash-only stores, because they don’t have any cash on them, locate other stores instead.
Our last blog also noted that not accepting plastic leads to lost sales. In today’s blog, we’ll look at the same theme from the reverse angle. What happens when you do accept credit cards at your place of business? It should come as no surprise to you that it significantly boosts your sales!
Credit cards legitimize your business.
In 2019, a business that doesn’t accept credit cards and debit cards comes off as looking “small time”. The very display of the Visa and MasterCard logos at the front of a store or by the cashier is a sign of prestige. It’s a sign of professionalism. It’s a sign of keeping up with the times. Without that display and without a POS terminal, your company will have a harder time generating a sterling reputation.
“When your business displays credit card logos that you accept either in-person or on your website, not only do you grab the attention of the cardholder, but you also give them peace of mind,” agrees John Rampton on Due.com, “Customers trust the credit card brands that they use. So, if you accept those cards that are in their wallets, then you must be a legitimate business.”
Many consumers don’t use cash.
Cash-only shoppers are a dying breed. All throughout Canada, consumers much prefer to carry either credit cards or debit cards instead of cash. So, to put it plainly, not accepting credit cards ensures that you’re losing customers.
“Cash-only operations will hinder business sales and potentially make the business lose hundreds of prospective customers,” affirms Marco Carbajo on TheBalanceSMB.com, “However, when a business accepts credit card payments, its potential customer base expands massively as more customers are attracted, thereby likely to boost sales. Keep in mind that most people prefer using credit cards because it is safe, legal, and convenient.”
Credit cards encourage impulse buying.
One of the best ways to boost sales is to encourage shoppers to spend money on items they had no intention of buying before the visited your store. Placing particular products in certain positions (by the register, for example) is a great method of generating impulse buys. However, when a shopper is made to only pay with cash, he/she will be a lot less likely to be able to afford such impulse buys.
“According to one study conducted by Dun & Bradstreet, people spend 12-18 percent more when they use credit cards instead of cash,” reveals Rampton, “Additionally, a McDonald’s study has found that its average ticket sale is $7 when people use credit cards, while it’s $4.50 when people use cash.”
Are you ready to accept credit cards at your store? At Canadian POS, we believe there’s no better way to accept credit cards and debit cards than with the revolutionary Poynt Smart Terminal. Call us at 1-877-748-2884 or email us at info@localhost to learn more!