Top 3 Reasons Businesses Need to Accept Credit Cards
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It’s 2016, and for businesses to be successful in today’s marketplace they need to accept credit cards. In fact, some may argue that with Apple (Apple Pay™), Google (Google Wallet) and others driving new payment methods, businesses should look beyond traditional acceptance to mobile wallets. But credit card acceptance is definitely the critical starting point.
Here’s the top 3 reasons businesses today need to accept credit cards.
Customers Expect It: Today’s customer expects options. They want to be able to choose whether to pay with cash, plastic or even their phone. Businesses that only accept cash will lose repeat business and they are likely losing customers they don’t even know about.
Cash is Dying: According to Javelin Strategy & Research, 27% of sales were made with cash in 2011 and that number is predicted to drop to 23% by 2017. In fact, purchases made with plastic comprised 66% of all in-person sales. And, according to a 2014 survey from Bankrate.com, Americans today aren’t carrying much cash, if any at all: 80% of Americans carry less than $50 of cash in their wallet, with 50% of the total carrying less than $20 and 9% carrying no cash at all.
Customers Spend More with Credit: While credit cards cost the business owner money, those costs are often offset by incremental revenues from both new customers and the average spend amount by customer. A Dunn & Bradstreet study found that customers spend 12 to 18% more when using credit cards than when using cash. And, McDonald’s reports its average ticket is $7 when people use credit cards versus $4.50 for cash.
If you’re one of the 55 million (27% of the total) small businesses not accepting credit cards, now is the time to start. Businesses who choose to accept credit cards see a boost in revenue of up to 23 percent, far outweighing the associated costs. Gain a competitive advantage, meet customers’ expectations and drive incremental revenues to your bottom line – start accepting credit cards today.