Why Accept Credit Cards

Increased Profits
Profits are the bottom line for every business. Almost any type of business will benefit from taking credit cards. Assume the merchant is selling a product or service to small businesses or individuals. Their profits can increase an average of 30% to 80% according to accepted industry standards. If they are selling by mail order, their sales will be substantially higher. If their product or service includes what people want or need on short notice, their sales can be much higher. Some mail order items are sold exclusively over the phone or on the Internet. Merchants can easily see how vitally important accepting credit cards can be to this type of business.

Instant Credibility
Check out any of the larger corporations that advertise on television or in the national magazines. These corporations make it clear that major credit cards are welcomed with open arms. Any merchant who displays that option in his ads will be perceived as a major player as well. People assume that only established firms accept credit cards. They also know credit card purchases offer them protection from “scam artists” and falsely advertised products.

Close Impulse Sales
We’ve all seen those clever infomercials on television. And almost everyone has bought something on impulse. In the home, you’ll find many items like woks, steamers, fishing tackle, and many other gadgets and items that have been purchased to make life “more convenient.” Millions of people buy all sorts of things every day after seeing them advertised on TV or because they are “ON SALE” or offered for “a limited time only.” Credit cards drive those sales. Any advertising expert will tell you that the motivation they create to ACT RIGHT NOW would be a lot less effective without credit cards.

The use of major credit cards is the easiest, fastest, and best way to make a purchase. Today’s consumers have come to rely — and expect — credit card acceptance. “Shopping around” is a way of life! Any company, big or small, would be wasting money promoting their products and services without the convenience of credit card purchases. Without credit card acceptance, sales can be lost to the competition. Companies need to consider all of their customer’s needs and preferences in order to make more sales. Credit card acceptance makes it easy for any and all customers to make purchases!!!

Reduce Expenses
The cost of accepting credit cards actually pays for itself. Especially when the costs are offset in no time with increased revenue and profit. The merchant also saves by reducing paperwork and order- rocessing time. This is why the majority of Internet businesses promote payment by credit card. Some even charge an extra fee if they have to send the customer a statement via the mail.

Working Capital
In most cases, businesses receive their funds from credit card purchases much sooner than they have to pay their suppliers for goods, thus giving them better cash flow. This means that credit card receipts will contribute to their working capital while costing them nothing in interest. With credit card transactions, merchants can receive their money in about 2 days. The merchant is not extending credit to their customers or waiting for out-of- state checks to clear. Many merchants use the customer’s money to purchase product before shipping it out to them. In this way, credit cards enable the merchant to grow without “tying up” large amounts of cash in inventory.

Security
When most credit cards are processed and approved, a merchant can be almost 100% assured that the funds will be good. If the user can no longer pay his bill, the credit card provider takes all the risk, not them! Remember, they already have their money in the bank. (Please note, however, any cardholder may question a charge on his card statement).