Its a given that running an online business means that you need to accept credit cards. If you dont then you are losing as much as 70% of your sales to competitors who do accept credit cards according to an article published by Forbes Magazine. But its not just online businesses that suffer lost sales by not accepting credit cards. That same 70% figure, and higher in some cases, is applicable for off-line businesses as well.
Most People Do Not Carry Much Cash
Thanks to direct payroll deposit and debit cards, 50% of Americans carry a few singles and may a five or ten and 40% carry around $5 or less including coins according to an opinion poll conducted by one company recently.
This means that even if you are selling low-priced items you will be chasing away as much as 90% of your potential customers if your product or service costs more than they are carrying with them at the moment and you dont accept credit and debit cards.
Even Starbucks, which has an average sales transaction amount of $4, does the bulk of their business with credit card and debit card transactions.
Statistics indicate that the average American carries at least four credit cards and nearly all Americans carry a debit card. Youre missing a lot of purchase opportunities if those cards arent welcome at your business.
Most Consumers Prefer Paying By Credit Card
Not only do consumers avoid the inconvenience of carry cash, which includes the threat of loss or theft, but they also enjoy the security of knowing that their bank is willing to back them up should they end up in a dispute with your business over the quality of your products or services.
Then There Are The Rewards Programs
A lot of credit card programs offer cash-back or other incentives for every dollar that a consumer charges to their card. People who are enrolled in rewards programs will go out of their way to pay by credit card and avoid using cash at all costs. If your business doesnt want to help them earn their rewards, theyll simply find another business that does.
Credit Cards Are More Convenient For Big-Ticket Purchases
Customers who are spending hundreds or even thousands of dollars on a product simply expect to be able to pay by credit card. This is especially true for those customers who cannot afford to pay for their purchase all at once and who are planning to pay the balance off over a period of time.
Some Customers Are Forced To Use Credit Cards
Employees who are making purchases on the behalf of their employers, or employees who travel on company business, are often issued company credit cards which they are expected to use for all purchases. Accounting for cash expenditures, and the subsequent process of reimbursing the employee for their out-of-pocket expenses, is a nightmare for businesses. If you dont accept credit cards, these employees are shopping elsewhere.
Youre Losing Out On B2B Purchases
Many companies that are making purchases of products or services for their own internal use or for resale prefer to pay with a credit card for accounting reasons. Not accepting credit cards means that you are losing out on the opportunity to serve repeat customers who are being forced to take their business elsewhere.
Hopefully youve found one or more good reasons to start accepting debit and credit cards at your business. And if the reason youre not accepting them is because you think you cant afford to, think again. The truth is: You cant afford not to!