What are the Advantages of a Small Business Accepting Card Payments?
As we fast approach 2018, you may be considering accepting card payments. Maybe you are currently putting together an extensive business plan, or you’re already running your own business and you’re weighing up the benefits of how card payments could help you?
The vast array of technology available to businesses means it’s possible to accept debit and credit card payments however and wherever you trade. There are four main types of credit card machine – Mobile GPRS, Wi-Fi, Countertop and Portable.
Each card terminal has its advantages/disadvantages, for example a countertop terminal is fixed to one location, so if your business operates an “on the go” model or you are a market trader it wouldn’t be beneficial. Choosing the correct handset is imperative to maximising every sales opportunity.
What types of payments, can a card machine accept?
The two main types of payments a card machine can accept are: The traditional Chip & PIN method where a customer inserts their card and enters their pin number. Extremely reliable and popular, all credit card machines should offer this.
The second main type of payment a card machine can accept is a contactless payment. The popularity in contactless payments is growing every year. They not only support you during peak periods, but they deliver convenience to customers who wish to pay for goods quickly. The contactless limit is currently set to £30. Contactless is often referred to as “pay and wave.”
Easier for the customer
One of the main advantages of a small business accepting card payments is the ease it provides a customer. If a business accepts card payments it will reflect well on your business image and enhance the service you already offer. It will also help your business run more smoothly.
Safe for the Business
Accepting card payments from customers means your business will invariably have less cash on its premises meaning you’re not putting yourself at risk, nor will it mean more time consuming trips to the bank to pay lump sums of cash.
Accept payments over the phone
If you have a website, a customer may wish to pay for an item over the phone. By not offering this service you potentially risk the customer going elsewhere and losing the sale altogether.
Offering payment by debit and credit card encourages spontaneity. Sometimes customers are restricted as to how much cash they have on them, and by not having a card machine you’re potentially missing out customers investing in impulse purchases. Extensive research into this showed customers are inclined to spend more when they’re paying with debit and credit cards, particularly in the aspect of impulse purchases.
Cleared funds quickly
With cash you are responsible for your own banking and during peak periods it can be tough. With a card machine once you’ve processed a car payment it normally takes a couple of days to have cleared funds.
What advantages have you found by accepting card payments? We’d love to hear the changes it has brought your business. Please comment below.