subject: Accepting Credit Cards - What Is The Benefit For Your Business? [print this page] Businesses are sure to experience a significant improvement in income once they start accepting credit card payments. Credit cards are used by two types of clients - those who use them to acquire goods they cannot pay for immediately, and those who charge all their monthly expenses to their credit card so they have a lump sum to settle on the due date. By opening the doors to credit cards, you extend your customer base, reduce overheads, increase income, and enjoy a number of other benefits.
Benefits of accepting credit card payments
All businesses can profit by accepting credit card payments. Getting a merchant account and paying credit card processing fees is undoubtedly not expensive today; small and large businesses can hire a credit card processing company and get going.
Online businesses, that earlier accepted payments as check through post, can benefit from the quickness of credit card transactions. Payments can be accepted on the e-commerce website and products can be sent to customers without the delay of waiting for check clearance.
Offering clients flexible payment options
Getting a merchant account is a must for accepting credit cards. A merchant account allows the business to accept credit cards, debit cards, ATM cards, checks, and cash - offering clients a whole range of payment modes. Besides the convenience and flexibility to customers, you extend your business' methods of invoicing and collecting payments.
Reduce bad debts and maximize cash flow with credit card payments
Assume you have a pricey product or service that a buyer needs but cannot pay for immediately. To help her out and make the sale, you extend credit and decide on a payback schedule. However, this doesn't work as expected, and payment reminders get you nowhere. You are now stuck with an outstanding receivable. If you have managed bad debts before, you realize how challenging and arduous it is to collect from unresponsive debtors. Rather than extending credit, you should allow them to use credit cards, thus limiting the danger of unpaid receivables. You receive the complete payment from the client through the credit card. The credit card company will collect the amount from the customer through regular monthly payments.
Reduce costs with credit card payments
Credit card payments bring down the expenses incurred in traditional invoicing. For example, the discount rate levied by a credit card processor to process an $80 transaction will be lesser than the cost of printing and mailing a bill to the buyer. The difference becomes even more important if you add the expense of sending reminders.
Recent years have seen credit card processing fees drop significantly and can now be easily afforded by businesses of all sizes. It is no longer necessary to have a high monthly volume of credit card transactions to meet the expense of the service. Irrespective of whether you work out of an office, your house or manage an ecommerce business, you can set up a merchant account without trouble and at a reasonable rate. In fact, credit card processing companies offer all-inclusive solutions that cover merchant account set up, monthly statement delivery, fraud protection, and other services to safely and efficiently accept payments.
by: Daljeet Sidhu
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