We live in a digital age. Although there are reasons why some businesses adopt a cash-only policy, it’s hard to understand why so many small businesses in the U.S. don’t take credit cards.
Accepting credit cards has many benefits for your business. Here are 5 of them.
1) Makes organization easier. Credit card payments leave a paper trail, which can make it easier for you to reconcile your accounts. An organized accounting record minimizes the likelihood your business will face an IRS audit. Cash-only transactions can raise a red flag that you could be omitting income.
2) Increases average sales. Accepting credit cards increases the chances that a customer will spend more money at your business. Consumers are more comfortable paying for large purchases with a credit card for the protection that a bank provides them, as well as a physical detachment from cash. Impulse buys are easier when they don’t depend on the amount of cash in the wallet.
3) Speeds up transactions. Counting out bills and change can take a lot longer than swiping a card and signing. And if your business accepts mobile payments, the process is even quicker. This means less time standing in line for all customers, and more time to shop.
4) Legitimizes your business. Businesses that display a sign that they accept credit cards, such as VISA and MasterCard, are seen as being more credible. Those logos are familiar to consumers, and it builds trust of both you and your business. If you sell anything online, you should know that 90 percent of online purchases are made with a credit card. Don’t alienate your customers by not accepting one.
5) Lowers your security risk. The more money you keep in your shop, the more likely you are to be targeted by a thief who wants to relieve you of your monetary burden. That cash-only sign in your window not only lets people know that they cannot use their credit card, it lets criminals know that your cash registers are primed.