Businesses Lose Out by Not Accepting Card Payments
A RECENT ARTICLE from the Telegraph’s Business segment has revealed some worrying numbers for small business owners across the UK. As many as 44% of SMEs across the nation believe they are not losing out on any revenue by not accepting card payments. Let’s just think about what this number stands for. This means more than 2 out of every 5 small business owners are convinced adding the flexibility of accepting customer card payments does not help improve their business.
In the same time the study, conducted by Square, 3 out of every 5 shoppers say they would spend more money in their areas if more establishments accepted credit- and debit card payments. 1 in 4 shoppers say they’ve even decided to walk away from a product for the sole reason of not being able to pay by card.
What These Numbers Mean For Your Small Business
As a small business owner, we at SimplyPayMe App respect the traditional view of avoiding having to deal with complex card payment providers, paying high card fees and having to deal with accounting for several different payment types.
However, this is no longer the case. Between Square, The UK Cards Association and Barclays, their studies have all shown that we are heading in one direction; increased popularity of paying by card. We will be spending a larger proportion of our money using our plastic cards, and as more businesses realise this and add to their ways of accepting payments, consumers will be less patient with the businesses who have yet to convert to accepting debit- and credit cards.
5 Reasons to Give Consumers The Chance To Choose How They Pay
Offering multiple payment options to your customers is really convenient for them, but it does require a bit of work on your part (though getting set up with SmartTrade is remarkably easy). Is it really worth it? Or would you just be better off taking cash?
Obviously, we say “yes, it’s worth it!” But why? What difference does it really make? Here are five good reasons you should give your customers freedom in their payment options.
It Improves the Customer Experience When Paying
More than anything else, offering multiple payment options provides a better experience for your customer. If they’re planning on paying with a credit card and you tell them they have to pay in cash, they’re not going to be very happy, and that’s a bad experience. And, as we’ve discussed previously, creating a positive customer experience is crucial for retaining your clientele.
Of course, there are a lot of other things that go into customer experiences, but never having to say “No, I can’t take a card, sorry” is a big help.
You Won’t Get Left Behind by Competitors Who Are Trying New Payment Options
If you’re competing with someone else in the market, and they start taking credit cards before you do, where do you think potential customers are going to go? Accepting card payments helps lend an air of professionalism to your business, and that can be very attractive to customers.
You can also get ahead of the others in your market who aren’t yet accepting cards, giving you a head start on recruiting and retaining new clients while they’re trying to catch up.
It’s Easier to Spend Money Using a Card
If you run a retail location, accepting credit cards should be a no-brainer, and a big reason is that it’s a lot easier for customers to spend more money with a credit card. They’re more likely to make impulse purchases, they don’t feel the pain of letting cash go, and there’s less friction for making frequent purchases.
And if you ever plan on taking your business online, you’re going to need to accept credit cards. It’s possible to have people mail in checks, but if you ask someone to do that, you might as well tell them that they need to pay in old Roman coins. If there’s even a slim chance that you’ll want to take payments online some day, you need to accept cards.
It Can Improve Your Cashflow
If your business is dependent on invoicing, you probably already know how long it can take someone to send in a check once they receive their bill. It takes time, it’s easy to forget about, and people aren’t used to it anymore. If you’re asking for checks, you could be waiting a long time to get paid for any job.
Cards, on the other hand, are easy and fast, and the payments go through in a few days. No more obsessively checking the mailbox for checks from customers! You don’t need to worry about bad checks, either.
It’s Really Not Expensive
The price of accepting credit cards makes a lot of small business owners nervous, but with SmartTrade, you get to skip a lot of the expensive parts. We have no contract fees, no setup fees, and you don’t need an expensive merchant account at a bank. Just sign up with your business information and you’re ready to get started.
Our transaction fees are some of the lowest in the business, too, so you can be confident that you’re not losing a lot of the extra money that you’ll bring in because you decided to accept cards!
An Easy Decision
Convinced yet? In an age where few people use cash and almost no one writes checks, it’s an easy decision whether to take credit cards or not. You just need to make sure that you’re taking them with a service that gives you as many features as possible and doesn’t charge a fortune for it.
Businesses need to accept debit- and credit card payments from customers. This is not to say you can’t encourage anyone to pay by bank transfers or cash, but having the added flexibility does you nothing but good. From the get-go, there is a consumer pool of 25% who walk away if cards are not accepted, which you can swoop up locally.
The SimplyPayMe App makes this experience as easy and seamless as possible by allowing you to take payments using only your smartphone. You just need 10 minutes to register and you’re all set to go take customer payments. Nothing to lose, everything to gain!