With the number of blogs that we’ve posted championing the acceptance of credit and debit cards, you would think that all businesses would do so. Many owners of small businesses, however, are concerned about the fees associated with accepting plastic. Naturally, there are fees involved. But the question that needs to be answered is “Do the benefits of accepting credit and debit cards outweigh the costs?”
On Forbes.com, T.J. McCue insists that the benefits “far” outweigh the costs. In fact, there have been numerous studies that have shown that when customers are given payment options, they tend to enjoy their shopping experiences a whole lot more. As McCue writes, customers “are more likely to make impulse purchases, join loyalty programs, and spend more per purchase – and that can only help your business to grow.”
Impulse Purchases. BusinessDictionary.com defines an impulse purchase as a “spur of the moment, unplanned decision to buy, made just before a purchase. Research findings suggest that emotions and feelings play a decisive role in purchasing, triggered by seeing the product or upon exposure to a well crafted promotional message.” In most cases, customers are unable to make such purchases when they have limited cash on them.
Your business’ acceptance of credit cards will allow your customers the freedom to buy those last minute items that they may not have the cash for. Placing purchases on a credit card provides consumers the ability to pay for them at a later date. When your store accepts cash only, it loses out on many opportunities to sell items that customers may buy on impulse.
Loyalty Programs. According to Ackroo.com, “loyalty programs offer one of the fastest routes to building close ties with your best customers. Over time, cardholders develop strong, lasting relationships with your business. The more they visit, the more they feel connected to you—and the more profitable your relationship becomes.” Credit card companies often offer loyalty programs.
Of course, this gives customers greater incentives to spend money using their credit cards. The more purchases they make, the more points they accrue that can be put towards such things as airline tickets, hotel stays and car rentals. Travel rewards aren’t all that is offered. Depending on the credit card, a customer can earn points towards just about anything. Help your customers earn more points by spending with you!
Increased Spending. When customers are given the option to pay with their credit cards, it encourages them to spend more money. With cash, your shoppers are limited to the amount that they have on them. Who wants to run to the automated teller to get more cash while shopping? Allow your customers to swipe their cards in your store. This will allow them to buy just about anything they want without worry.
If you’re a business owner who is still concerned about the fees associated with accepting credit and debit cards, call Canadian POS Corporation at 1-877-748-2884. We offer top-notch POS terminals at the most affordable rates in our industry! Allow us the opportunity to show you just how much the benefits of accepting plastic outweigh the costs.