Oh, the dreaded credit card payment. You see, several advantages come with accepting credit cards. It’s hard to say no to accepting credit cards, from increasing your sales to offering flexibility to your customers. The only problem is figuring out which processor works best for you. Thankfully, I’ve compiled a list of reasons your business should use a credit card processor.
What is a credit card processor
When people think about credit card processing, they often imagine a big, expensive system that only the biggest companies in the world can afford. However, several different credit card processors are much more affordable for small businesses. The first step is finding the best small business payment processor for your company’s needs.
Credit card processing can be as simple as using an online merchant account to accept payments from your customers. These types of accounts are typically free and can be set up quickly. They’re also easy to use — all you have to enter your customer’s information and then approve or reject the payment request.
Some businesses may prefer the added security of using a point-of-sale (POS) terminal instead of accepting online payments through their website. This type of terminal allows you to swipe your customer’s payment cards right at your business location, so you don’t have to worry about them getting lost in the mail or being stolen by hackers online.
You also can use an eCommerce platform like Shopify or Bigcommerce if you want to sell products directly on your website rather than through an online marketplace like Amazon or Etsy. These platforms allow you to accept payments from customers directly through their website without paying any fees upfront.
Increases your revenue
The average person spends about $1,500 per year on their credit card. If you’re not taking payments from customers with a credit card, you’re missing out on a large portion of your potential revenue.
Credit card processors help you get paid faster, which means more money sooner. They also allow you to take multiple forms of payment — debit cards and prepaid cards are just as common as credit cards these days.
On top of that, accepting all forms of payment will increase your customer base and make it easier for people who don’t have access to traditional banking services to buy from you.
Lets you reach new customers
Credit card processing is one of the most affordable ways to get paid by the customer. With a merchant account, you can accept all major credit cards and debit cards, allowing you to reach more people who want to buy from you! Some businesses choose to accept only cash, limiting their potential customer base.
You also don’t need to worry about accepting checks or other forms of payment other than cash because you can reject those transactions if they don’t meet your requirements. If someone wants to pay with cash only, they may not be able to do so with your business because of how much security is in place with accepting credit cards online or over the phone.
Increase customer satisfaction
When accepting payments, your customers must have a seamless experience. You want your customers to be able to pay quickly and efficiently to get back on their way with whatever it is they came into your store to buy in the first place! The last thing they want is to wait in line at the register while their payment goes through or fill out lengthy paper forms requiring them to write their information out by hand.
Using a credit card processor also helps reduce fraud within your company. By keeping track of each transaction that happens within your store, you’ll be able to see who has been using certain cards and whether they’ve made purchases in other locations. This can help prevent theft within your store by wisely using this information when deciding whether or not someone should be allowed access.
You can improve security
A credit card processor has sophisticated fraud prevention tools. The processor uses these tools to ensure that the information entered into the system is valid and hasn’t been used somewhere else already. This helps prevent fraudsters from stealing your customers’ information and using it elsewhere.
Credit card processors also have more security features than most small businesses can afford on their own. This includes things like data encryption, firewalls, and anti-virus software — all things that most small businesses don’t have in place because they’re expensive and complicated to install and maintain on their own.
It helps you build business credit
It can be challenging to get approved for a credit card when you start a business. If your small business is starting, you may not have enough track record to get approved for a conventional bank loan.
However, there are other ways to build your business credit. One way is by using a payment processing service that handles electronic transactions on behalf of your company. The payment processors will report your payments and other transactions to the major credit bureaus, Experian, TransUnion, and Equifax, who use this information to determine your company’s creditworthiness.
If you have used the same processor for several years, these reports will show positive information on your credit report. This can help improve your credit score and make it easier for you to qualify for other types of loans or financing.
An easy way to manage your expenses
Using a credit card processor allows you to track your sales and costs more efficiently. The company takes care of processing all of the transactions so that you don’t have to worry about it. However, some companies may charge fees for this service. For example, if you’ve been using Square Register and want access to more features like inventory management tools, you’ll need to upgrade your account and pay additional fees each month.
Greater speed of payment
It’s easy to get paid when you use a credit card processor. Your customers don’t have to worry about sending checks or money orders. They enter their credit card information, and the charge goes through automatically.
This saves time for both you and your customer. You don’t have to wait for checks or money orders to come in, and your customers don’t have to worry about making sure their check was received before they send another one out. It’s all handled automatically through the credit card network, so all you need to do is authorize the transaction and mark it as paid on your end.
That also means that there’s less work on your end when it comes time to reconcile your accounts and pay your bills each month. Instead of having dozens or hundreds of checks coming in every month, you only have one or two payments coming in each month through an automated system. That makes it much easier for you to track what needs paying and when it needs paying.
While there are currently many reasons businesses should use a credit card processor, staying ahead of the competition is pretty high up. Since many other businesses are using credit card processors, if you don’t take advantage of it, you’re at a disadvantage with some of your business competitors.