Having a small business does not necessarily mean it cannot...Read More
December 24th, 2020 by Loyalty Sense Inc.
Having a small business does not mean it cannot adapt to new technology (e.g., credit card processing) and upgrade the way you run your business to standardize the underlying operations. All that differs, is that a small business should be more mindful of the ways it can reduce their cost and expand on opportunities that are as simple as getting paid.
Having a payment method besides receiving cash at hand can be essential because it helps your business, no matter how big or small, get paid. Accepting card cards will help you streamline the payments, allow better customer service, and make accounting easier. That’s just the tip of the iceberg as when we explore into numbers and data, we will understand the importance of credit card payments (AMEX, MasterCard, VISA, etc.), why it has almost become a necessity in conducting business in today’s era where almost everything is being influenced by technology itself. Running a business of any scale has become a daunting task, and in order to survive in a world where the customer is always right, we must highlight the importance of satisfying our customers from various touch points.
In today’s day and age, not all customers would have cash on hand (especially during COVID-19), and therefore having an alternative of paying via debit or credit card would ensure a sale, instead of losing a sale due to not supporting the customer’s preferred payment method.
One of the benefits of having a payment processor is that payment processing companies have set features to ensure that fraud and theft are avoided, and that merchants are protected by such. These features include but are not limited to, chip activated terminals, password protection that will be verified by the card’s network, and one of the most important features; chargeback insurance.
Cashless payments will enable you to get paid, avoid bottlenecks, and improve the speed of your operations. It would reduce high accounts receivable balances as large volumes of transactions can be processed in real time round the clock. You won’t have to worry about keeping track of cash at hand, and it makes managing records so much easier and faster!
In most cases, credit card transactions are electronically processed and are likely to be settled quickly. Then the proceeds are immediately deposited in your business bank account by the processor within a matter of days. This will not only increase and improve your cash flow but will discard issues revolving around checks, billing, and invoice collection from your customers. This helps seamless flow of cash in matter of seconds. It’s quick, simple and convenient.
Giving customers the option of different payment methods is going to improve your customer’s journey with you. A lot of people don’t carry cash at hand and find it easy to pay through credit cards instead. Not having their mode of transaction can cost you losing customers to your competitors. It is true that a business may lag behind competition if it does not accept credit card payments, especially when competitors are already offering credit card payments. To survive, a business should accept credit card payments, which will obviously bring it to a level playing field with other competitors in the market.
According to the 2018 Canadian Payment Methods and Trends report, Canadians are opting for faster and more convenient methods of payment such as electronic and contactless payments. Online bill payments, online shopping, and app purchases are also key drivers in the growth of credit card usage. Offering your customers, a variety of payment options makes your products and services available to a broader client base because those customers who may not have cash on hand will be still be able to make purchases they may otherwise have passed up. According to a recent survey, around 70% of consumers prefer credit or debit card over any other payment method. This fact alone shows us the importance of having a payment processing system in place to ensure a business’ success; if your business is not set up to allow your customers to pay by card, you risk losing their business. Having card payments is also highly preferable by most businesses as instead of invoicing clients and waiting two to four weeks for them to pay, you are assured of the payment, so you do not need to worry about your clients defaulting on their debt entirely. Card payments are secure, reliable, and instant!