Both Traditional and Online Businesses Need Merchant Services

Merchant accounts that allow business owners to accept a variety of customer preferred payment methods have become commonplace in traditional business settings. Even small businesses, such as fast food providers, convenience stores and kiosk sized retailers have accepted the fact that allowing for multiple popular payment options is a wise decision. Far few consumers are carrying cash these days, and even those who are often prefer the safety and security of paying via credit card or check, if for no other reason than to have an accurate, detailed account of each purchase. Slowly but surely, online vendors are realizing this as well.

The popularity of Paypal, a service which requires consumers to set up accounts similar to an online banking institution, kept many online businesses from opening merchant services for the benefit of their customers. Disadvantages to using the Paypal system were soon evident, however, as bad experiences with the system were publicized by both merchants and consumers. The stigma of a flawed system was not the only consideration for Internet shoppers and online businesses, however. Many consumers were unwilling to use a system that required setting up an account, memorizing yet another password and using a third party to transmit credit card or bank account information.

The level of convenience available to consumers declined sharply as a result of having to navigate a completely new and often confusing separate web site in order to make a simple transaction. On the merchant side of the equation, the realization that Paypal offered no additional fraud protection and charged rates very similar to and often higher than merchant services providers has caused many to second guess it’s usefulness. Of particular concern is that there is simply no way to determine the amount of lost sales due to consumer hesitation aimed at opening a Paypal account.

Consumers generally feel more comfortable using payment formats that mirror those used by their neighborhood retailers. When purchasing small items especially, many will not go through the trouble of spending an additional five to ten minutes online in order to purchase an item that only costs a few dollars. While the prices of these items may be small, the losses incurred by business owners who don’t offer a tried and true merchant account system can be substantial.


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The Top 10 Benefits of Accepting Credit Cards

1. Accepting credit cards will often double… even triple your current sales. Studies show businesses that accept credit cards can see a huge increase in volume… almost overnight.

2. It will legitimize your business. Studies show that when you display credit card logos as forms of payment you accept, these logos create a sense of ‘trust’ in your customers mind, and if they trust you, your customers will buy from you.

3. A merchant account improves cash flow. Accepting cards has a huge positive effect on business cash flow. Even if sales don’t increase (and they almost always do) your business will benefit by having the money from the credit card sale instantly delivered to your bank account. No more waiting for check to clear, or sending out time consuming invoices, waiting for payment. With credit cards you get your money from your customers quickly and easily.

4. Over 90% of web purchases are made using credit cards. If you are selling ANYTHING on the web and you are not accepting credit cards, you are eliminating 90% of your potential buyers.

5. Grabs Impulse buyers. Credit card holders buy more on impulse, are more affluent, and buy 2.5 times more merchandise than non-card holders.

6. Convenience. Let your customer decide the most convenient way to buy from you. Many customers want to use credit cards because of reward points or reward miles associated with their credit card. Customers are more likely to buy from a business that accepts credit cards than one who does not. Don’t lose a customer to a competitor just because you don’t accept credit cards.

7. Larger orders. The average order size of someone paying via credit card tends to be larger than someone paying by cash or check. And larger orders = more profit. In addition, customers paying by credit card tend to place extra orders and order more often.

8. Competition. Your competition is already accepting credit cards. You need to accept cards in order to survive.

9. A merchant account is inexpensive. Gone are the days of high rates and fees. Today’s credit card processing rates are so low even the smallest mom and pop outfit can easily accept credit cards. In fact, usually the increase in sales a business receives when they do accept credit cards more than covers the small costs involved. As a result, by accepting credit cards many businesses make more money!

10. Quick and easy setup. Many businesses think getting setup to accept credit cards is a long and tedious process. No more! Most of the time you can be up and running within 24 – 48 hours. If a provider tells you otherwise, go somewhere else!

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