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Make Your Business Life Easier with Credit Cards

Angie Mansfield

April 02, 2013

Are you burning money? If your small business doesn't accept credit cards, you just might be.

As of 2010, 78% of consumers owned a credit card, with 60% owning a rewards credit card. Those customers want to use their cards to pay for goods and services; if you're not accepting cards, you may be turning away alot of business.

Why You Should Accept Credit Cards

A leading reason why many small business owners resist setting up credit card processing is the cost.

However, when you consider the risk of returned checks (and the cost of recovering those fees from customers), along with the increased sales you're likely to see, it's worth the cost.

Here are some important factors to consider:

*Businesses that accept credit cards tend to make more money -- you may see sales increases of 30% or more. Credit card orders, on average, are three to four times larger than orders paid for by cash or check.

* Some customers will not make big-ticket purchases if they have to use a check or cash. The ability to make payments on the card balance, coupled with consumer protection offered by credit card companies, makes your customers much more inclined to spend larger dollar amounts on your goods or services.

* For the same reason, it's much easier to upsell customers when they're able to pay with a card.

* If you're planning to take your business to the internet, this issue becomes even more important. You have to accept credit cards online in order to make sales online.

* Accepting credit cards makes sales tracking much easier, since you'll have an automatic record of every transaction you your customers make with their cards.

* Particularly for small or home-based businesses, accepting cards can give you a more professional and legitimate image.

How to Let Your Customers Know You Now Accept Cards

So, you've decided that the benefits outweigh the costs, and you're ready to start accepting cards. But how do you let your customers know about this important change?

There are several ways to get the word out.

First, you can place decals and signs in your shop window and near the cash register, advertising the fact that your customers can pay with their credit cards. If your business has a social media presence, that's a great way to spread the news. Finally, you can add a blurb to your next sale ad or coupon in the local paper: "Credit cards now accepted."

Accepting credit cards does bring some fees and other costs. Some merchant partners will require you to lease or buy the equipment, and you'll have to pay them a small percentage of each transaction.

But by shopping around and looking at all of the associated fees and costs, you can find a plan that meets your business needs -- while reaping the benefits of accepting cards.

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