How processing credit cards online can grow your business
The following is a guest post by John Rampton, founder and CEO, Due.
Processing credit cards online can grow your business. It has opened up a whole new world of opportunity for all types of businesses. These business can now attract customers that prefer to use this method of payment for their purchases.
First, here are some statistics that illustrate why you should be processing credit cards online:
A. The Federal Reserve Payments Study 2016 noted “The number of credit card payments reached 33.8 billion in 2015 with a value of $3.16 trillion. This number is up 6.9 billion or $0.61 trillion since 2012.
Credit card payments grew at an annual rate of 8.0 percent by number or 7.4 percent by value from 2012 to 2015, the largest growth rates among the payment types considered.”
In the third quarter of 2016, “total digital commerce accounted for more than one in every seven discretionary dollars spent by consumers.”
“Online revenue was up 9.2 percent in the third quarter of 2016 compared to the previous year.”
C. Credit cards are the preferred method for online payments, while using mobile, and even at retail outlets. Of those surveyed, the belief is that the credit card is still the safest method to use when shopping online.
Similarly, the credit card is most trusted when using mobile, and especially with credit card in hand for retail commerce.
Second, here are some ideas about how processing credit cards online can specifically grow your business:
A. Many small business owners in various service industries still rely on paper invoicing, though this is quickly becoming a process of the past.
In reality, businesses can now migrate to an online system where their customers greatly appreciate getting their monthly freelancing bills. This includes any bill; gardening, housecleaning bills, (and other bills), repair costs, etc. through their email.
Most customers would prefer that they click on a payment link right while it is at the top of their mind, and go ahead and take care of the payment with their credit card.
Additionally, these customers may want to buy other things from you like a pool cleaner but they may need to use their credit card to finance the purchase.
By not accepting credit cards online, these are missed revenue opportunities.
B. If you have a physical store location, you can expand your business with an e-commerce operation for those customers that may want to buy from you but cannot make it into your retail operation.
This includes both domestic and international customers, providing you with a seemingly endless supply of revenue.
C. Another option that processing credit cards can offer is to leverage the growing trend among consumers for on-demand shopping where a customer or client can order online.
This ordering can be as simple as an order from your restaurant or from your retail operation.
D. New purchase power or shopping by mobile does not have to take place in another country. Becoming a standard procedure is ordering by mobile and paying for a purchase. The customer then arrives to pick up what they purchased from your physical location.
Convenient for the customer is the time savings from a restaurant, your retail outlet, and even the dry cleaners.
This process can be an excellent way to get the attention of those consumers that like the convenience of shopping in their own way and in their own time.
Third, there are other significant benefits for accepting online credit card payments that will indirectly help grow your business.
These benefits involve the ability to improve the overall customer experience wherein your customers can pay more quickly on their terms so they willingly come back to purchase. Plus they tell others about what a great customer experience they have had.
Additionally, you will be able to save the time and money that you can put toward other aspects of your business. Marketing, individual customer care, and technology investment or product development can all benefit from time savings. All of these activities are designed to grow your business.
Being able to streamline the payment process aspect of your business and make it more efficient is possible because the online payment process is integrated with other parts of your business.
The ability to integrate and even automate more processes means that you can complete multiple tasks faster while removing any repetitive work that goes into accounting, billing, marketing, and more.
Lastly, you’ll be able to increase your cash flow because online payment processing for credit cards speeds the settlement process.
In this way the funds arrive in your bank and you can then use that money toward expanding your business or conducting any of the aforementioned activities that stimulate growth.
On all accounts, processing credit cards online contributes to your business growth goals, which every business owner wants to achieve.
As you grow the volume of online credit card transactions, you’ll be able to lower any processing fees for an even greater of profitability that you can put right back into growing your business.
Remember that your competition is already accepting credit cards online so you don’t want to be left behind. If they aren’t accepting cards online, this is your chance to gain an advantage.
About the Author
John Rampton is an entrepreneur, investor, online marketing guru, and startup enthusiast. He is the founder of the online invoicing company Due. John is best-known as an entrepreneur and connector. He was recently named #2 on Top 50 Online Influencers in the World by Entrepreneur Magazine and a Blogging Expert by Time. He currently advises several companies in the San Francisco Bay area.