If you run a small business, you may feel powerless to increase its revenue as you compete with big name companies. However, implementing the right merchant accounts—particularly credit card accounts—can change that feeling. Today, merchants are leveraging the power of processing credit cards via merchant accounts. If your business does not accept credit cards—or accepts them in a limited capacity—increasing its credit payment options could be critical to boosting its revenue.
Small business credit card processing can offer the following benefits, among others: lower than normal account fees, a dramatic increase in sales, the ability to sell online, and improved payment security.
Lower than Normal Account Fees
Depending on a business’ monthly revenue, the fees for some merchant accounts can be unaffordable. Small business accounts eliminate this problem by offering lower than normal account fees that help businesses to post higher profits.
Merchant services profit from this arrangement by adding a new segment to their customer base: small businesses, many of which are at a pivotal point of growth.
Dramatic Increase in Sales
Considering U.S. consumers hold 609.8 million charge cards, not accepting credit cards amounts to rejecting thousands of sales annually. Though some consumers are canceling their credit cards to avoid debt, statistics show that, overall, credit purchases are increasing.
According to First Data Corp’s SpendTrend report for July 2011, the dollar volume for credit card purchases grew 10.7% between June 2010 and June 2011, and the number of credit transactions increased 6.8%.
For many businesses, these statistics mean the difference between mediocre and marvelous monthly revenue. Further underlining the importance of credit payment is that the average cash purchase is $9, while the average credit purchase is $40.
Ability to Sell Online
According to the Electronic Transfer Association (ETA), 75% of credit card holders use their credit cards online.
Furthermore, research shows that roughly one-third of physically active shoppers in the U.S. and the U.K. would rather shop online than in store. Once considered a strategy for reaching remote customers and not local ones, accepting payment online is now critical for reaching locals who prefer the convenience of online shopping.
Selling online is an excellent way for businesses to increase their customer base without opening new locations or engaging in expensive advertising.
Increased Payment Security
Merchants who only accept payment in cash and checks can cause security risks for themselves and their customers. From a merchant perspective, collecting cash and making large bank drops invites internal theft, and paper checks—unless processed with a check scanner—increase the risk of fraudulent purchases. From a customer perspective, carrying cash and checks can result in financial loss due to pick pocketing and lost or stolen checks
While cash and checks are valuable payment options, they should not be a merchant’s only payment options.
AVPS Offers Small Business Credit Card Processing
At AVPS, we have over twenty-five years of experience servicing Small Business Merchant Accounts and merchants. If your business needs help competing with big companies in its market space, small business accounts can help in more ways than one. For more information, call us today.