Credit Cards: Are They Good For Small Businesses?

“Times change so quickly that if you and I don’t keep up with the times, we’ll find ourselves with an umbrella in our hand, over our head, when the sun is out.” — Malcolm X

As time continues to pass, our technology becomes more and more advanced. It’s crazy to think that a little over 20 years ago we were just beginning to explore the internet. But now in 2018 with payment systems becoming more digitalized, a concern of information and identity safety must be addressed.

Even as we are constantly embracing the future and its ever-changing technology, many small businesses still denote card payments of any type. Although it seems a bit daunting, converting from a cash-based payment system to one that accepts card payments is a quick and easy transition.

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If as a small business owner this transition seems too excruciating, you can even set a minimum card purchase amount per transaction to avoid accumulating merchant fees per purchase. For example, some storefronts place signs that say ‘NO CARD PURCHASES UNDER $2.50’ to avoid these fees. Because managing a small business is often times more stressful than a corporation, the ultimate goal of this transition is to increase business traffic and save money collectively as a small business.

Online Sales

Many small business stay small in stature because of their lacking online presence. You as a small business owner can streamline your company’s business by adding an online component.

No matter where you shop…

  • Cash cannot be accepted online and so with brick and mortar stores, lost sales are inevitable.
  • A lack of an online presence also adds to less customer trust because not all customers have access to get to a store.
  • Online presences open doors for consumer awareness and more opportunities for advertising.

Having a credit card is a great privilege: it grants the owner purchasing power of money not readily available. With just a piece of plastic that basically has no limits, a customer has a buying power that many “cash only” customers do not.

When a small business accepts credit, they are then able to encourage their customers to make bigger or more impulsive purchases, since the consequence is not immediately affecting their pockets.

When professional businesses accept credit and card payments, they are able to proudly display the accepted credit card companies on windows and doors to create a sense of trust within their customers. These displays of major credit card companies validate the small business as a legitimate entity in a market that is consumer-driven because demand and satisfaction are high ranking factors to customer satisfaction.

Logistics

Many small business owners find themselves drowning in paperwork by the time tax season rolls around. With a card payment system, these business owners can save time by spending less time preparing invoices and dropping deposits off at banks. You don’t even need to wait for checks to clear — payment is instant. Instead the accounting and reporting processes are all online and can be completed in a few easy clicks.

Accepting card payments: Comes with an online payment system, too. When every transaction is processed online it makes the accounting processes much simpler. The “books” are always up to date, which comes especially in handy during tax season. Instead of scrambling through receipts at last minute, the reports are only a few clicks away.

Cash flow: Is extremely important to the success of small businesses.

  • With more time being saved at payment, there’s more time to tend to customers’ needs.
  • When transactions are electronically processed, customers are spending less time at the register.
  • Plus, nowadays many people don’t carry cash and accepting card payments makes cash flow more easily.

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Competition

Keeping a steady stream of business traffic: It can be very difficult at times. In a small business environment, every sale is crucial. Too many small businesses miss out on easy sales by limiting their customers to cash only.

So, to boost traffic and keep from losing sales to competition, a small business needs to be on the cutting edge of technology.

Remember, competition is key — stay updated.

 Offering credit payment options for customers:

  • Makes your business more accessible and improves your customers’ experience.
  • When credit options are made available, it opens the opportunity for customers to come back to the business and even set up recurring payments.
  • Offering incentives like rewards or punch cards shows your loyalty as a business owner to your customers, and leaves them wanting more.

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Business Travel

When you’re attending meetings and conferences while deciding if switching to a card-based payment system is right for you, let A1A Limo service take you to wherever you’re going.

With a luxury limousine service like A1A Limo, you can trust that you will arrive to your destination safely and comfortably in transportation from trained professionals in a mode that’s:

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Alternatively, some credit card companies even offer incentives for account openings with small businesses. Some of the advantages associated with opening a business credit card are higher credit limits, credit rating boosts, tighter control on employee spending and additional business perks.

A very common and useful business perk is the accumulation of airline miles associated with purchases. With A1A Limo Airport Transportation, you can make use of these miles to expand your business and never have to worry about being on time or missing a meeting.

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