How accepting card payments does wonders for small businesses?
If you are having a small business that requires regular payments from its clients then you must think about offering card payments. With the ever increasing value of plastic money more and more people are opting to pay through debit or credit cards. If you keeping an option of card payments open to your customers then it has its own pros and cons. In most cases, the benefits outweigh the drawbacks. Find here, a comparative study of whether you should accept card payments or not, and whether it is good for your business.
Benefits of accepting card payment for small businesses:
Ease of payment for the customer: As maximum people use plastic money to make purchases these days, it will be highly beneficial for businesses if they keep this option open. If not then chances are that the customer may walk away from making the purchase. So, with cards things are easier for the customer which results in more sales and more business.
Increased profits: If you accept card payments then you cater to a huge section of tech savvy individuals, which cannot imagine paying in cash. They are habituated with plastic money and so, pulling them would be easy. This will have a straight effect on the profits as more sales will result in increased profits.
Adding a professional touch: Accepting card gives a certain sense of authenticity and professional touch to your business. The customer also feels more confident about the existence and credibility of the business.
Less cash to manage: As there will be less cash on the premises, it will be much easier to manage things. It reduces chances of loss due to theft and thus serves the security purpose as well.
Crosses geographical barriers: Accepting cards helps you get orders on the phone as well as the internet. Practically, you can send items and receive money to people over a distance and hence maintains a business across geographical barriers.
Search through statements: As you get a detailed statement of the payment made by the customer, you can actually analyse the customer’s spending habits and peak transaction time. This helps in creating new marketing strategies for the future.
Win over the competition: You certainly get an edge over competitors that still use old methods of payment like cash and cheque. And for those who have tech savvy competitors, this method of accepting cards will put you at par with them.
Quick money: When compared to cheques and other modes of payment, cards help you get quick money. You get instant payment on the sales.
Drawbacks of accepting card payments for small businesses:
Cash is cost effective: Depending on the type of your business, you need to check whether cards is more cost effective to you or cash/cheque. No need to get blinded by the techie part of plastic money. You may do much better without it.
Extra charges: To set up card payments, you need to first get an account with a bank and get payment terminals. These extra charges are called Merchant Service Charge (MSC). Moreover, you need to pay different commission rate to the credit card companies. So, calculate all costs before switching to card payment for your business.
With the above mentioned pros and cons, you can weigh things as per your business and see if accepting card payments is the wisest step or not.