Three Reasons Why your Company Has to Accept Credit Cards for Business

October 13, 2008

Is yours one of the few companies out there that still doesnt accept credit cards for business? If it is, you might be shooting yourself in the foot without even realizing it. Credit cards can make or break a business, and thats no exaggeration. Here are four reasons why your company needs to accept credit cards for business -- no ifs, ands or buts about it.

1. Almost 90-Percent of Online Transactions Are Paid For With a Credit Card

If you have any hopes of taking your business online, youd better accept credit cards for business. If you dont, youre only going to get about 10-percent of the online transactions you possibly could be getting. No two ways around it -- thats a sad, sad number.

2. Customers Want Convenience

I cant count the number of times Ive been out of the house with nothing by my wallet and a few credit cards. No cash, no checkbook. The only way I could purchase a product or service is with a credit card. If an establishment doesnt accept credit cards for business, I wont be buying from them.

Think about how many customers youre excluding if you dont accept credit cards for business. How many people wont shop with you -- not because they dont want to, but just because its not convenient for them.

When it comes to making money, you need to offer your customers convenience. Credit card acceptance is a big part of that.

3. You Can Charge More

If you offer a valuable product or service, you might not be getting as much as you could for what youre offering. Because cash-only consumers are much more price-conscious than credit card consumers, you have to lower your pricing when dealing on a cash-only basis.

If, on the other hand, you accept credit cards for business you may actually be able to raise prices without losing any volume. In fact, chances are your volume will increase now that youve opened yourself up to an entirely new segment of the consumer market.

4. Those Who Dont Ebb and Flow Will Eventually Die

The business world is in a constant state of evolution. Historically, the companies that dont ebb and flow with the changes eventually die out. Credit cards are a part of that change. If you dont accept credit cards for business, you may be heading in the way of the dinosaurs -- which means facing extinction.

If your company isnt yet accepting credit cards, consider the above facts. Yes, merchant accounts cost money. Processing credit card transactions isnt free. However, keeping the above in mind, can your company really afford to not accept credit cards for business?

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