Check, please! Why a credit card merchant sees higher tickets
Perhaps you’ve been hesitant to begin accepting credit cards because you know there are fees associated with credit card processing. While this is true, the benefits of accepting cards far outweigh the costs. The major benefit of taking credit cards at your business is increased revenue, as well as ensuring you're not losing customers. Let’s look at a few of the ways accepting credit card payments can improve your business.
Boost your sales with credit card acceptance
You might be surprised to learn that accepting credit and debit cards at your business can double or even triple your sales. One Intuit-sponsored survey found that 83 percent of small businesses that began accepting credit cards saw a boost in sales. In fact, 52 percent of those businesses surveyed brought in an additional $1,000 each month, while 18 percent made over $2,000 more per month. Accepting credit cards is almost a surefire way to increase your sales and keep your customers happy, since today’s consumers expect to be able to use payment cards wherever they shop.
People spend more when they use a card
Countless research studies have shown that consumers spend more when they’re using a credit card versus cash. Handing over a plastic card to pay for goods or services at your store can feel far less painful than physically counting out paper bills that total the same amount. A study by Dun & Bradstreet found that people spend 12-18 percent more when they use credit cards instead of cash. For example, McDonald’s reports its average ticket is $7 when people use credit cards versus $4.50 for cash. (Source: NerdWallet).
Similarly, impulse buys also increase when shoppers are using a credit card. Grabbing an extra $5 item close to your checkout line, for example, becomes easier and less painful when the shopper is already planning to charge the purchase and therefore doesn’t have to worry about having enough cash in his or her wallet.
Offer the options your customers want (and expect)
Accepting credit cards keeps your customers happy and, therefore, just makes good business sense these days. As Anita Campbell of Small Business Trends writes, “Providing the option to pay with a credit card is becoming less a courtesy and more an expectation.” Don’t risk losing your customers to your competitor who is willing to accept credit card payments while your business is still operating on a cash-only basis. Accepting credit card payments can be especially helpful (and profitable) if you sell big-ticket items because some consumers like to charge such purchases and pay them off over time, rather than having to have the cash upfront for the pricey item.
Accepting credit cards at your small business is a great way to see higher tickets and an overall boost to your bottom line. You can attract new customers, keep your current customers happy and grow your business by implementing an electronic payments system. See how Vantiv's merchant services can help your business grow.