Accepting credits is an essential part of running a successful business, whether you run a small business or own a retail store. Retail stores that have credit card facility for their customers helps promote their business and benefit the retailers. By accepting credit cards, you can improve your cash flow, and reduce your business overhead expenses.
There are many advantages of having credit card facility to the entrepreneurs. Some of the reasons why business owners must accept credit cards are discussed below:
When you are running a business – small or big, you have ensured customer convenience. Customers find it easy to shop at the stores that offer credit cards facility. Also, it shows you are a serious entrepreneur and helps build your professional image.
2. Increased average number of shopping:
We can see that the customers who use credit cards tend to shop more than the average customer (who uses cash instead). The main reason for the frequent shopping on credit cards is the ease of giving back the payment. So, it can help businesses make greater profits, especially during holiday or sale season.
- Impulse Buying:
Accepting credit cards encourages the customer to purchase more things. Retails stores that accept credit cards, gifts cards, debit/ATM cards, encourage impulse buying and increased customer satisfaction. It also helps grow business.
- Consider the competitive aspect :
All businesses face some competition. If the competing company is providing credit cards facility or accepts Master/Visa card, then you should also provide such services. Doing this will enable you to reach the masses and effectively grow your business. Customers find it convenient to shop from a store that offers such flexible and convenient payment methods.
5. Faster payment:
Credit cards help in fast payments. In just fraction of a minute, your transaction is completed and authorized. You leave the shop in no time, and the retailer receives the money within 48 hours.
- Easy online shopping:
With the trend of online shopping, customers love to shop in their comfort, while sitting at home. Find hassles in cash on delivery method? Try using credit cards! They provide instant authorization and convenience. Being the owner of a retail store, you should provide such facilities to your customers. Moreover, it will also help promote your business.
- Helps acquire international customers:
When you promote credit card facility online, it accelerates your business sales in the international market too. It helps attract orders from all over the world. The currency exchanged in the transaction, helps increase your business profits.
8. Reduces the costs:
Usually, it is less expensive to process debit and card cards than to accept cheques. When you accept credit cards, it makes the operating costs more efficient and reduces the overhead expenses by eliminating the need to manage account receivables, and send bills. The retailers are often worried about how the discount rate or transaction fees of each payment is made to their account.
The credibility of your business is increased instantly in the eyes of the customers or the potential customers when you provide the option to use credit cards. Also, it increases customer loyalty.
10. Increases productivity:
Acceptance and settlement of transactions are done automatically through credit cards, which enables retailer’s funds to deposit directly to their bank account. Doing this makes the payments less time-consuming and more efficient. Also, it helps the retailer to focus on other aspects of the business.
From the above points, we can conclude, the retail stores that have credit cards facility for their customers are making a lot of business profits. Always remember, the cost of providing credit card facility is minimal if you look at the benefits you incur.