Accepting credit card payments is now easier than ever for small businesses, and with competitive merchant credit card processing available, it is no longer a big overhead, or difficult to keep compliant. However, many small businesses in the retail sector are losing out because they still aren’t aware of how easy it would be to begin taking card transactions.
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Here are just three of the times when you may be losing a sale or selling less products to a customer, simply by not offering them the option to pay using their favorite credit card:
The Customer Hasn’t Got Enough Cash On Them
One of the times you will find customers walk away from buying something they otherwise would buy is if you only accept cash and they don’t have enough money on them. While if a customer is really committed to buying something they will head off in search of an ATM and come back to make the payment, often they aren’t prepared to do this, and leaving to come back also gives them more time to think about whether they really want to go to the effort of returning to your stall or shop. Whether the items you sell are small, low ticket items or expensive ones, accepting credit cards will mean nobody has to walk away or go to any trouble to get cash to buy from you.
The Customer is Low on Funds
We’ve all had the odd cashflow problem, perhaps at the end of the month waiting for your pay to come in, or when you run a business and are waiting for a big payment from a client. Normally, these periods aren’t really a problem, as you can just use a credit card and repay it when the money arrives, however if the items you want to buy come from a seller who only accepts cash, you are not going to be able to make the purchase and will have to go elsewhere. By accepting cards, businesses can allow customers to spend and manage their money as they choose, regardless of the amount in their account available to withdraw that day.
It’s an Impulse Buy
Studies have repeatedly shown that people buy more items and spend more money when they are shopping using a credit card. It is likely this is psychological – they feel more free to spend when they don’t have to hand over physical money for the things they take home with them. If you sell a lot of the kind of products people may buy on impulse, or want your customers to buy more items in their transactions, then accepting credit card payments could very much help you achieve this.
As you can see, there are lots of occasions when you may lose a customer, or they may spend less, just because your business doesn’t have the facility to allow them to make their payment on a credit card. If you want more sales, card processing is definitely something to look into.