Accepting credit cards to grow your small business
When you’re managing a small business, of course cash is a preferred method to receive your payments. After all, it’s simple for the owner to accept, and all the owner has to do is count the cash to complete the transaction without dealing with any kind of third party in the process. But the reality is, in 2016, the world is becoming increasingly dependent on credit cards rather than cash. Credit cards might not be as simple for the seller, but for the buyer, plastic tends to be king because of the convenience factor. If you want to expand your business, accepting credit cards can be a great way to bring in new customers.
In a world where some merchants do not even accept cash, many younger Americans have grown up depending on their cards to make their purchases. As a result, many of them only carry cash in specific situations, and some only do so after a visit to the ATM. When a business chooses not to accept credit cards, it turns off a large segment of its potential market. Millennials will often choose to simply take their business to the next store rather than have to plan ahead if the business in question only accepts cash. For a small business, ignoring a large market can be a devastating decision. These buyers have become a crucial market, and their purchasing decisions are only going to become more important as they enter their higher-earning years of employment. Getting these buyers interested in your product now is vital to expanding your business.
Even in situations when most people have cash, such as a mobile booth at an event, it’s a great idea to offer customers additional payment options beyond cash. Although older generations aren’t as averse to carrying cash as millennials, most people of any age do not feel comfortable carrying large amounts of cash on them in case disaster strikes. In that situation, people give themselves an unofficial spending limit by the amount of cash they have on them, and once they’ve hit that limit, they’re done spending money for the day. As a merchant, however, you can work around that by offering credit card transactions. If you have a way for customers to pay by card when your competitors are only accepting cash, you’ll be the one reaping the benefits of buyers choosing convenience. A buyer with a strict amount of cash is far more likely to break his or her budget to purchase an item of yours he or she really likes if it won’t restrict him or her from enjoying the rest of the day.
By building loyalty early and showing innovation through multiple forms of payments, small businesses can open a door for expansion. Accepting credit card payments is a great way to make those connections early so that you can quickly set your business up for long-term success.