4 Reasons Why Accepting Credit Cards is Worth the Fee

With nearly 60 percent of US customers using credit cards over cash, many merchants have welcomed the payment method with open arms. However, according to a GoPayment Survey, 55 percent of US small businesses only accept cash or checks. While it may seem like a no-brainer for merchants to support credit card payments given their popularity, the fee associated with credit card payments has deterred many small businesses from adopting the technology.
 
On average, transaction fees range from 2 to 3 percent. Additional charges for setup, implementation, chargeback and fraud accountability vary depending on each card provider. These fees have a larger impact on small businesses than on chains or superstores that process millions of transactions. Still, small businesses should calculate the ROI of accepting credit card payments. Although transactions fees may seem steep, there are a number of benefits that may boost sales and make up for the coast of implementation.
 
Here’s why you may want to consider accepting credit cards:

1. Accepting credit card payments can lead to an increase in sales.

Credit cards can increase your sales in a number of ways. For starters, accepting the popular payment method opens your business up to a broader customer base and helps you compete with larger merchants who accept a variety of payments. Additionally, customers are more likely to make “impulse” buys when they use credit cards.

2. Credit cards can greatly improve customer experience.

Credit cards are a quick and easy payment method for customers. Swiping a card instead of doling out cash cuts down on time at the register, trips to the bank and, for many, time spent managing finances. In today’s fast-paced world, convenience is key. According to a study by Bankrate.com, 8 in 10 people carry less than $50 in cash on a given day. That means your customers will need to make a trip to the ATM if they plan on making a big purchase. Accepting payment methods that make life easier for your customers improves the shopping experience and gives you a competitive edge.

3. Credit card payments increase security.

Customers won’t be held responsible for fraudulent charges and neither will you as long as you have the proper equipment in place. Thanks to new EMV technology, credit card payments are becoming more secure than ever. Just make sure your terminal is EMV-compliant. Additionally, accepting credit card payments cuts down on the amount of cash you and your sales associates must handle and store on premise.

4. Accepting credit cards opens opportunities for an omnichannel approach.

Accepting credit card payments allows merchants to start building an omnichannel approach in which customers can interact with a brand through several different outlets. If you accept credit card payments in-store, you’re one step closer to accepting payments online or from mobile devices. While this isn’t a direct benefit of accepting credit cards, it’s worth noting because engaging with customers on multiple channels has become an increasingly important tactic for building brand loyalty and creating the ultimate shopping experience.
 
Does your small business accept credit card payments? Tell us why or why not in the comment section below or send us a tweet @Cayan and let us know!
 
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