Americans have always had a can-do attitude. It was what drove them to create the world’s oldest current democracy. Of course, their faith has been tested many times along the way. The country has survived a Civil War, a Great Depression, and the murders of four presidents. And when it comes to politics, Americans are often divided. Liberals and conservative can’t seem to agree on anything at all. What keeps this ‘Great American Experiment’ intact? Why, it’s the American Dream, of course.
What defines us as Americans is the belief that any person can succeed if he or she just works hard enough. We know this for a fact when we examine the small business statistics. Did you know, for instance, that 99.7 percent of U.S. firms are small businesses?
Even when the economy stumbles, Americans invest in small businesses. During the so-called recent Great Recession, 627,000 small businesses opened their doors, while 595,600 closed up shop in 2008.
Hard work is probably the single most important factor when it comes to opening a new business. There is also, however, market research. Every new business owner must get to know his market and his customers. By accepting credit cards, small businesses are able to make it much easier for their customers to pay for goods or services. A merchant services account makes this possible for any size business and their customers will be more loyal to the business they shop at. Another benefit of a merchant services account is that it provides the ability to accept checks and gift cards along with credit cards. These can be processed quickly allowing the customer to complete their transaction without wasting too much time.
Debit and credit cards replaced cash and checks as the most popular payment method in 2003. At last count, six out of every ten retail transactions are completed with plastic. The numbers are even more uneven online, where nine out of every ten purchases involve electronic payments. There is absolutely no reason to suspect that this trend will ever reverse itself and that cash will once again be king. If anything, we appear to be headed for a truly cashless society sometime in the not-too-distant future. What does this mean for business owners?
In short, they have to change their ways. The days when businesses could remain cash only have long since passed. The consumer of the present expects a variety of payment options at the register, and if you do not provide them, he will take his business elsewhere. There is both good news and bad news for new owners.
The bad news is that accepting credit and debit cards costs money. Business owners must obtain something called a merchant service account, often at a bank or other authorized financial institution. These providers perform several vital services. First and most importantly, they either approve or decline each and every electronic transaction. If the purchase is approved, they will send a copy of the bill to the customer’s credit or debit card company and collect the balance. Once the funds are received, the provider will deduct a certain amount for services rendered before they deposit the remainder in the merchant’s bank account.
Now for the good news. The cost of accepting plastic has become more affordable in recent years as the number of service providers has grown. A business that processes credit/debit card payments in the flesh can receive rock-bottom rates from reputable service providers. Then there are the positive benefits of accepting plastic.
Survey after survey has confirmed that consumers have a more positive view of businesses that accept credit/debit cards than those that do not. Shoppers tend to see them as more reputable and they are far more likely return. As a result, the number one benefit most merchants report when they start accepting plastic is an increase in repeat business.
We should also mention that customers spend an average of twenty dollars more when they use a credit card rather than cash. Instant gratification is indeed a powerful thing, and studies shows that shoppers are far more likely to fall prey to it when they are paying with a credit card.
In the end, the benefits of accepting credit cards far outweigh the costs. Finding the right merchant services account can really help your small business.
Similar Posts:
- Credit Card Processing and its Place in a Start-Up Business
- How to Begin Setting Up a Merchant Account
- A Quick Guide to Accepting Credit Cards
- Some Essential Tips Regarding Business Credit Card Processing
- What Credit Card Processing Services can do for a Brand New Business
