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CREDIT_CARD_INFOGRAPHICIf your business doesn’t accept credit cards, or even if you do but prefer customers to use cash to avoid transaction fees, you’re cutting your own profits. Encouraging customers to use credit cards can greatly increase your profits.

Learn why your business will profit if customers use credit cards to pay for their purchases:

  • Increase Customer Spending

If your business only accepts cash, not only will you turn plastic-loving customers away, you’ll also limit the spending of those who do shop at your store. When customers use a credit card to pay for their purchases, they can spend as much as they like. However, if you only accept cash, they’re limited to spending only the amount of money in their pockets. In fact, researchers conducting a study on customer spending at Massachusetts Institute of Technology (MIT), discovered that shoppers were willing to spend up to 100% more when business owners encouraged credit card use instead of cash. When a business doesn’t accept credit cards, it can lose up to 80% of customer impulse purchases, which is a significant amount of profits!

  • Improve Customer Service

When customers pay with credit cards, it allows the transaction to go much more quickly. People hate standing in line behind a customer writing out a check or searching through their wallet for exact change. Promoting credit card use helps speed up the lines at your businesses, so customers can get what they need and get going in a timely manner.

  • Decrease Late Payments

If your business accepts checks or sends invoices after services have been rendered, there’s a good chance you’re not getting all the money you’re owed. If a person writes a bad check, you’re probably not going to know they don’t have sufficient funds in their account until days later when the bank returns it. Similarly, if a customer doesn’t pay an invoice, it could take quite awhile to track them down and demand payment. Not only are you not getting paid in a timely manner, you’re also spending time tracking down these payments when you have plenty of other things to do. This problem can easily be resolved by encouraging credit card use.

  • Security

If your business doesn’t accept credit cards, your cash register is probably going to be filled with money. This makes you a prime target for crime. All a thief has to do is catch on to this, rob your store, and then take off with all your profits for the day. Encouraging credit card use makes your business much more secure, as your credit card profits cannot be stolen. Not only will your profits be safer with a higher volume of credit card payments, your business will also appear more secure to customers. People like to see the familiar American Express, Visa, MasterCard, and Discover logos displayed in your window. It helps them to be much more confident about their purchase decision.

Encouraging customers to use credit cards to pay for purchases at your business is a winning decision for everyone. If credit cards aren’t already the preferred method of payment at your company, now is the time to make the transition.

Infographic provided by http://www.collectivepos.com/

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