Online shopping is convenient and also saves time. Most people shopping online do it while on the go, at the office, or even at home without having to step foot into the retail shop. Credit card payments make this possible, making them an even more popular payment method for online shoppers.
Businesses should identify reliable and reputable merchant account providers to enable them to accept credit card payments online to expand their sales into the online marketplace. There are many reasons why successful entrepreneurs accept online credit card payments. Below are some of the reasons why it is beneficial for every business to accept online credit card payments.
Why your business should accept online credit card payments
1. Cash flow management
Accepting checks for payments means the merchant has to wait for it to clear first to get the funds. The same case applies to billing customers with invoices since most customers will wait till the due date to pay the invoices. Apart from the instant cash payments, merchants appreciate credit card payments since, within 48 hours, they can access the funds. You also have no risk of bad debtors and bounced checks that delay cash flow.
2. Increases sales and encourages consumer spending
To increase the bottom line of your business, you must increase sales. One way to encourage consumer spending is through offering payment options to your customers. Card payments are a convenient means of payment, and people shop more with credit and debit cards than with cash. Online sales are on the rise, and research shows that a high percentage of online shoppers pay with credit cards. Impulse buying is also more common with people who shop with debit and credit cards.
3. Improves customer experience
Giving customers payment options makes it easier for them to pay for goods and services. Competitors build on such aspects of their business to get an edge. Customers find it easy and less risky to carry credit cards compared to cash. Most credit card issuers also offer reward points to their customers and other privileges to encourage them to use their cards. Such perks encourage customers to shop more to gain more reward points, and that increases sales. Small businesses and startups will also benefit from accepting credit card payments as it boosts sales immensely.
4. Reduces security risks for business and the customer
After a customer pays for goods and services by swiping the card, the merchant receives the credit, and there is a debit on the customer account. In cases of fraudulent credit card transactions, streamlined dispute resolution ensures minimal risk of financial loss. Most merchants opt for the online secure payment option and, through the dispute resolution process, any customer dispute resolution is possible. But merchants should encourage customers to shop more with credit cards by assuring them that the payments are secure and confidential.
5. Automation of recurring payments
Recurring subscriptions and payments for services offered monthly can be challenging for businesses because they have to keep track. But through card payments, a merchant can schedule monthly card deductions. It is convenient for the customers and makes it easy for merchants to keep records and track subscription payments.
You may enhance the customer experience in paying for subscriptions by sending them reminders a week before the debit on their credit cards. Some customers may not be willing to renew the subscriptions or may want to upgrade to another package at the end of the month. When you notify them earlier before billing, it becomes easy to offer excellent customer service and avoid customer complaints and negative feedback from the clients.
6. Provides instant gratification
Many customers review products online first before making a decision. Whenever they find products that they like, there is an impulsive need to buy the products then. Capitalizing on that by accepting credit card payments enhances your sales. In your online webpage, you should provide the shipping details and updates on products available and how customers can access them.
With such business details, customers can make decisions to buy immediately after reviewing the product. Having the credit card payment option available can influence the customer’s decision to buy. Because of the natural need for instant gratification, they will make purchases. That will impact your business sales positively.
No business is too small to start accepting credit card payments. It gives your business an edge and legitimacy. Though the processing fees apply to credit card payments, there are affordable packages for small and big business enterprises. In the long run, the sales will increase because it is an all-inclusive payment method for all potential customers. For customers, the convenience of using credit cards is crucial, and it influences their decisions to shop.