How credit card capability can help your business

by | Aug 1, 2019 | Bookkeeping

When your customers make a purchase, do they pay with cash or plastic? But when they’re buying an inexpensive item, many of your customers probably use cash. When they decide to buy something a bit pricier, they probably expect to pay with a credit card.

What does this mean for your business? It’s simple. When you have credit card capability, you encourage your highest spenders to consider buying from you. But when you accept cash only, your best customers may take their credit cards and their business somewhere else.

Credit card capability drives E-commerce

Credit card capability encourages your brick and mortar store customers to buy more. With an online marketing presence, you can also give them new shopping alternatives. Whatever type of business you operate, you can generate new customers by opening up new markets. The opportunities are endless.

  • Local businesses can reach national and international customers and generate sales worldwide.
  • E-commerce can give customers shopping options: online ordering, home delivery, store pickup.
  • Hungry diners can order meals from your restaurant and accept delivery at home or in the office.
  • Grocery shoppers can order online for in-home or in-store delivery.

Credit isn’t as painful as cash

Behavioral Professor, Dan Ariely, believes that shoppers pay an emotional price when they use cash. In his video, “The Pain of Paying,” he explains that when a customer pays with cash, they feel the financial loss immediately. Debit card transactions cause a similar sense of discomfort because they instantly take money out of your account.

When a customer uses a credit card, buying isn’t as painful as they can keep their cash until the bill arrives. With a credit transaction, there’s no immediate experience of financial loss.

Lots of people still pay with cash, but…

We haven’t yet become a cashless society. That’s mostly because cash is still convenient, available, and easy to use. An Experian.com article, “Cash Vs Credit Cards: Which do Americans Use Most,” concludes that cash is still the most popular payment method for day-to-day transactions. In fact, 24% of American consumers use only cash when they make a purchase. As the cost of goods increases, that dynamic changes.

When a shopper decides to spend more money, they pull out a credit card. While the average cash-only transaction is 22 dollars, the average credit card transaction is $112.

Can your business thrive without credit card capability?

Your business doesn’t have to have credit card capability but you might sell more if you do. It’s not an issue if you market only small ticket items. If you sell items that cost 50, 75, 100 dollars or more, you can’t afford to remain cash-only.

Contact Goode Bookkeeping & Consulting

We understand how important it is to give your customers purchasing options. Call us at (860) 659-6543 to learn more about upgrading your potential with professional merchant services through our trusted partners.

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