9 Advantages of Accepting Card Payments

These days consumers are relying more and more on carrying out purchases using credit or debit cards rather than the cheques and cash that were traditionally used. Due to this it has virtually become a necessity for businesses to accept card based payments, this is particularly true in the online space where increasing numbers of financial transactions are taking place. This article will outline 9 advantages to your business of accepting card payments.



1) Customers now prefer to, and expect to be able to, pay by credit card. Businesses should always aim to make the purchasing process as simple and streamlined for customers as possible; allowing them to pay using methods convenient to them can help this.


2) Avoiding lost sales. If customers are forced to pay using cash, they will often have to leave the store to withdraw that money. There is always a chance that after they leave, they will not return.


3) Improved cashflow. Although it is dependent on the way that the merchant account is set up, typically card based payments will clear considerably faster than cheques.


4) International market. Credit cards make international purchases/sales a breeze. Currency conversions can be done automatically and the majority of credit cards are accepted worldwide.


5) Expanded customer base. Unlike cheques, or cash, credit card payments are able to be processed instantly without the two parties being in the same location. This opens up possibilities for phone, online and mail orders to be accepted.


6) Tightened security. For a business owner it is safer to primarily deal with card transactions as it means having less cash in store. For purchases card details are highly encrypted meaning there personal information is safe.


7) Fund availability is checked. Unlike with cheques, which can on occasion bounce, card based payments are able to carry out checks on the account before processing the transaction. This means that it can be insured that the card is not lost or stolen and that the requested funds are available before the transaction is carried out.


8) Impulse purchases are encouraged. Again, the more streamlined the process the more customers are likely to make a purchase. If they see an item that they are interested in but not desperate for, being able to pay for it instantly on a card can often make the difference between making a purchase or deciding against it.


9) Simplified admin processes. As card transactions are automated statements are far easier to create and process than they would be if dealing with a lot of cash transactions.



I recently moved my business online and decided to use a payment service provider to handle make the process of setting up my merchant account as well as providing me with a payment gateway.



Although there are a lot of advantages to credit card transactions there are a few disadvantages: Card companies will generally charge, often agreements need to be negotiated with multiple card providers and staff will need to be trained in new processes. Despite this the advantages are far greater and businesses should always try and accept as many payment types as possible.