Why and How a Merchant Can Accept Credit and Debit Cards
Many businesses, especially when they are new or relatively small in size, will pay little or no attention to increasing the number of ST0-085options by which customers can pay. This is particularly true of credit and debit cards, as many merchants believe that the costs regarding initial set up may not be quickly recovered.
There are four primary reasons to accept credit and debit cards in a business:
1. Increase sales or revenue
2. Bring in new customers
3. Lessen trips to the bank (or having to deal with bounced checks)
4. Lower administrative costs
Let's look at each of these in turn:
Increase sales or revenue
Many studies over recent years have shown that the average size of credit card orders or payments is anywhere from 20% to 50% larger than cash and check orders or payments. In other words, just by adding this choice to existing customers they increase the amount of money that people are prepared to pay for goods and services. Many merchants, small and large attest to this and reap the benefits accordingly.
Bring in New Customers
Many customers want to pay by credit or debit card but need to be given the opportunity to do so. Studies show that credit and debit card payments (in combination) have already overtaken cash and cheque payments. Customers often get benefits for paying with credit or debit cards such as frequent flier miles or other "affinity"132-S-709.2 type points. Paying with a credit card also gives customers more flexibility to manage their personal cash flow.
Lessen trips to the bank
By making credit cards an additional method of payment, you decrease the time it takes to process orders by waiting for cheques or other slower payment methods. In addition, you also reduce or even eliminate bounced cheques, and the costs of having to deal with this problem administratively.
Lower administration fees/costs
Because credit and debit cards can be accepted on the Internet or at a terminal (by swiping the card) the transaction is an electronic one and can readily create an on-line record that is easy to record and/or transfer to an accounting or other administrative system without further keying. Administration time (and particularly reconciliation effort) is therefore reduced or simplified or both.
By taking credit and debit card payments, merchants will also typically improve their relationships with customers. In addition, the more difficult it is for customers to make purchases, the more likely your business is to lose customers. Meanwhile, your business will be132-S-713.4 able to increase retention by offering customers with recurring charges or fees the opportunity to pay automatically.
There are four primary reasons to accept credit and debit cards in a business:
1. Increase sales or revenue
2. Bring in new customers
3. Lessen trips to the bank (or having to deal with bounced checks)
4. Lower administrative costs
Let's look at each of these in turn:
Increase sales or revenue
Many studies over recent years have shown that the average size of credit card orders or payments is anywhere from 20% to 50% larger than cash and check orders or payments. In other words, just by adding this choice to existing customers they increase the amount of money that people are prepared to pay for goods and services. Many merchants, small and large attest to this and reap the benefits accordingly.
Bring in New Customers
Many customers want to pay by credit or debit card but need to be given the opportunity to do so. Studies show that credit and debit card payments (in combination) have already overtaken cash and cheque payments. Customers often get benefits for paying with credit or debit cards such as frequent flier miles or other "affinity"132-S-709.2 type points. Paying with a credit card also gives customers more flexibility to manage their personal cash flow.
Lessen trips to the bank
By making credit cards an additional method of payment, you decrease the time it takes to process orders by waiting for cheques or other slower payment methods. In addition, you also reduce or even eliminate bounced cheques, and the costs of having to deal with this problem administratively.
Lower administration fees/costs
Because credit and debit cards can be accepted on the Internet or at a terminal (by swiping the card) the transaction is an electronic one and can readily create an on-line record that is easy to record and/or transfer to an accounting or other administrative system without further keying. Administration time (and particularly reconciliation effort) is therefore reduced or simplified or both.
By taking credit and debit card payments, merchants will also typically improve their relationships with customers. In addition, the more difficult it is for customers to make purchases, the more likely your business is to lose customers. Meanwhile, your business will be132-S-713.4 able to increase retention by offering customers with recurring charges or fees the opportunity to pay automatically.
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