Build Your Customer Base with Merchant Services
Businesses everywhere have been severely affected by the recent economic slowdown. But did you know you can actually grow your customer base, even during a recession? If your company still doesn’t accept credit cards as a form of payment for your goods or services, you could be throwing away hundreds and even thousands of dollars, or more.
Especially in the past decade, credit cards have been on the increase, and consumers are turning to them more and more often to make purchases both online and in person. By signing up with a merchant services provider, your company can begin to cash in on all the benefits credit cards have to offer for businesses that accept them as payment.
Credit cards offer numerous advantages to consumers. One of the primary benefits of using credit cards from a consumer’s standpoint is their convenience over carrying large sums of money from store to store. Credit cards allow you access to ready cash, while allowing your money to stay safely in the bank, rather than in an easily stolen wallet or purse. And, unlike cash, if a credit card is stolen, consumers can cancel the card and avoid being charged for any transactions that were made after the card was stolen. Once cash is stolen, it’s gone for good. These aspects make credit cards especially popular with travelers and tourists, as well.
Credit cards also offer security in other ways. Many credit card companies and issuers offer buyer protection policies, as well as warranties or other guarantees that extend beyond the warranty offered by a product manufacturer or seller. These options are especially important to consumers making purchases of electronic goods, as well as other large purchases for which the buyer wants some added protection and peace of mind.
Because they are overseen by large financial institutions, credit cards also protect buyers against the potential for fraud, when unscrupulous merchants may try to pad charges or make charges that were not agreed to during a transaction. Studies have shown that consumers tend to trust companies and businesses that accept credit cards more than those that do a cash-only business, and that companies displaying the logos of the cards they accept are viewed as being more legitimate than cash businesses.
Of course, credit cards are valuable to any individual who wants to make a large purchase but can’t pay for the entire face value at one time. By allowing consumers to spread payments over time, credit cards have risen to the head of the class among many consumers considering alternative payment options. As a result, consumers are more likely to purchase more expensive items, knowing they can still comfortably afford them within the confines of their monthly budgets.
And thanks to today’s rewards programs, many cards actually pay their customers for using them. From frequent flyer miles to bonus bucks and points that can be redeemed for goods, gift cards or services, credit cards often reward their users by paying them back a portion of the costs they charge. Reward programs have become especially popular in recent years, as competition among cards began to grow in order to attract customers from a limited market of consumers. Some cards even offer cash rewards for customers who use their cards. These cash rewards can be paid back once a year, or even applied to the outstanding balance of the card. Still other cards put rewards directly into a savings account or other bank account. All of these reward programs make credit cards even more attractive to consumers, who are looking to stretch their budgets even farther today.
Many credit cards also offer additional ways to save, with coupons and codes on their websites and included in monthly statement mailers. These discounts are available only to cardholders, and have a distinct advantage to the merchants who accept these cards: the credit card issuer absorbs any discount from these coupons, while the merchant continues to receive the full value of any sale made with the coupon.
And if your business is online, or if you accept any portion of sales through the Internet, accepting credit cards as a form of payment is essential for the growth of your company. Studies show more than 90 percent of online shoppers use credit cards when paying for purchases, meaning you could be turning away 90 percent of your potential customers. While you’re still undecided about whether or not to open a merchant services account, your competitor may already be accepting credit cards, turning your loyal customers into their loyal customers. Even f you plan on expanding to the Internet in the future, now is the time to open a merchant services account to ensure you are ready to compete online.
By opening a merchant services account and accepting credit cards in your business, you can expand your customer base dramatically, and grow your business to levels you’ve never dreamed of. Today’s merchant accounts are easy to set up and very affordable – what are you waiting for?
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Karen Zabel is a freelance writer who writes about businesses and merchant services.
