AOL Business Article: Accepting Plastic “Outweighs the Cons”

The Dilemma of a Cash-Only Business

We were struck by a long and thoughtful article recently posted on AOL Business, with the headline “Can You Afford to Run a Cash-Only Business?”
The first section highlighted the acknowledged benefits of the “cash on the barrelhead” method of accepting credit cards. This approach ensures every incoming penny remains with the business and relieves you of concerns about security breaches, hacks, and increasing bank fees.

Embracing the Benefits of Plastic

But the second section talked about the benefits accruing from taking plastic. The article quotes colorful, Florida-based publisher Mike Arman, who says  “My number-one rule of business is ‘always make it easy for people to give you money. I’ve been running businesses for 40 years, and you never know how someone is going to want to pay you. Credit cards, debit cards, checks, letters of credit, cash — I don’t care. I’ll take it all.”

Why Rejecting Credit Cards is a Mistake

“Rejecting credit cards is sheer folly,” Arman asserts. “Customers sometimes don’t have cash and will invariably buy more on plastic than they will for cash. Would you rather have 100 percent of nothing, or 97 percent of $1,000 because you took a credit card?”

The Risks of a Cash-Only Approach and Online Business Potential

And business owners are likewise absolved of any worries that come from word getting out that large batches — or bags! — of cash are laying about, as is the case with a cash-only business.

And of course, there’s virtually no way to have an online business, or one keeping up with customers’ mobility, if you’re cash only.

Impulse Purchases and Increased Sales

The Small Business Administration has an essay on its website weighing in on the same thing, and they note that only are “ Card payments are evolving into the most common method of customer payment,” but more to the point “The convenience of using credit cards generally increases the likelihood of consumer ‘impulse purchases,’  which ultimately contributes to an increase in a business’s average sale. Customers are more likely to make these purchases if they have access to credit or their available bank account funds.”

AVP Solutions: Expanding Your Payment Options

You know how we feel about it here at AVP Solutions! If you’re looking to expand payment options for your customers — whether in offering gift cards, taking eChecks, becoming more mobile or whatever you seek to do — get in touch today.

Maximizing Cash Flow with Payment Variety

As the AOL article says, “ having a variety of ways for customers to pay maximizes cash flow.”

And isn’t that something you’d like to make as “maximum” as possible?