Credit cards are increasingly becoming popular modes of payment for businesses in the current digital era. With the increasing popularity of online shopping and cashless purchases, 41% of shoppers have cut down on their use of cash, and 97% of them resort to credit and debit payments.
Accepting credit cards costs money for a business somewhere between 2% and 5%. Due to high payment gateway charges, businesses may not want to accept credit cards. However, if you partner with a good payment processor, you can keep this cost as low as possible.
Here are the significant benefits a business can get when it accepts credit card payments.
Once a business starts accepting credit cards, it opens its gate to a whole new demographic of customers that preferably use credit cards to make purchases. If a business limits itself to one or two modes of payment, such as cash, it may lose out on thousands of potential customers who may want to transact using cards. With more customers pouring in, you can witness a considerable increase in your sales volumes.
Zaakpay offers India’s best integrated payment gateway to boost your conversion rates with quick onboarding and no extra fees.
- Eliminates the Risk of Bad Cheques
Till before card payments became popular, most businesses dealt with cheque payments. Such payments often posed the risk of bad cheques when cheques would bounce due to the unavailability of funds in the banks. This resulted in a loss of time and funds for the seller.
You can eliminate any risk of receiving a bounced check with credit card payments. Now, there is no need to chase customers or clients for bounced cheques and re-payments for your products or services.
- Improve Business Cash Flow
Having a consistent cash flow for your business is crucial for its smooth functioning at all times. Accepting credit cards can indeed improve your business cash flow. This especially holds true if you accept a lot of check payments. Instead of spending a lot of time waiting for checks to clear, you can access your funds a lot faster.
This is because credit card payments are processed electronically, making the entire procedure quick and easy. There is no need for any clearance as in cheques, so various aspects of the business payment cycle like invoice collection, bill sorting, counting, and transferring money are quick and enhance cash flow.
For businesses operating out of brick and mortar stores, accepting credit card payments becomes imperative if they want to build an online presence in the form of e-stores. This is because plastic money in the form of credit cards is the most commonly used payment option by online shoppers. So, if you offer your products or services online, you should take the services of a reliable payment gateway like Zaakpay and get ready to accept credit card payments.
Your business competitors will use all strategies to grow their business in the market arena. If they accept credit card payments from customers and you don’t do that, you are likely to lose out on several customers. This is because card payments offer ease and security of payments and are fast replacing cash payments. Therefore, you also need to offer credit card payments to your customers if your competitors are doing that.
Credit cards, no wonder, are a convenient and easy-to-use way of accepting and making payments. You just need to swipe or tap on your smartphone screen to complete a transaction. Moreover, there are no risks associated related to loss of cash.
Moreover, consumers can avail themselves of several perks on using credit cards for online transactions, such as cashback, reward points, airline miles, etc. This also makes credit cards popular among consumers. On the other hand, you may miss out on several customers if your business does not accept credit cards.
Many SMBs avoid accepting credit card payments because they find them expensive and reduce their profits because of high payment gateway charges. This fact is far from reality because today, your business can avail of credit card processing packages at competitive rates that do not eat into your profits.
For instance, Zaakpay offers some of the most competitive rates and payment gateway charges in the industry. There are two modes of pricing: Standard and Enterprise plans based upon the business volumes. While the standard package is ideal for small businesses and start-ups, the enterprise plan provides enhanced customized pricing plans according to your business needs.
When you are ready to take credit card payments for your business, you take one step in the direction of establishing your business in the industry as legitimate. You can display the logos of various credit cards you accept for payments on your website, which will help you get the attention as well as the trust of the customers, who are also the cardholders.
Also, providing your customers and clients with more payment options in terms of credit card payments will help improve their business satisfaction levels. This, in turn, will improve your market placement and boost sales.
Credit cards are a convenient, reliable, and quick mode of payment for customers and businesses alike. With credit cards, you can keep a digital footprint of your business transactions. This can be very helpful for being eligible for securing any business loans in the future. Choosing plastic money over paper comes with many benefits that are hard to ignore. Get started to grow your business by offering credit cards as one of the multiple payment options to your customers.