Benefits of Accepting Card Payments as a Small Business
Right now, when the pandemic is raging around the globe, sparking fears and compelling people to maintain social distancing, a lot of small businesses have turned towards accepting credit and debit cards payments. To make the entire process smooth and hassle-free we present here a guide that could help you get to grips with the basics, and help you successfully run your business.
Benefits of accepting card payments as a small business
Few important reasons why taking credit and debit card payments could be great for a small business are enumerated as following:
With more and more consumers preferring to pay through credit or debit card, it’s important for your business to possess the ability to accept these modes of payment. Data reveals that more than 75% of all high street spending is done through credit and debit cards, and with the new contagion striking, this figure is only going to grow at a tremendous pace in coming years.
- The use of cash on the high street has been steadily declining
New contactless technologies have made smaller purchases easier, which is the prime reason for their soaring popularity. With new technology making shopping easier and hassle free, it’s projected that customers will turn toward cards in droves.
- Make Payment Simple
With more and more consumers preferring to make payments through debit and credit cards, its important for businesses to meet the expectations of their customers. Today, most of the people make payments using cards and the number is likely to grow significantly over next 10 years.
- Faster payment cycle
The payment is made at the time of the sale, and the money is immediately transferred in your bank account. You are spared the hassle of taking the cheque to a bank and waiting for days for it to clear.
- More saving for the business
Doing away with cash transactions saves you from a lot of hassles. There are no risks in card payments and you have an indelible record of all your transactions.
- You’re more likely to make a sale.
A customer is unlikely to make a purchase if there is ‘cash only’ option. In contrast, if you accept card payments, you are offering customers an attractive payment option and certainly more reasons to shop at your store.
- It is time saving
Accepting card payments is much faster and convenient than dealing in cash. The customer, as well as the business, is spared the trouble of tendering exact change. Also, elimination of cheque saves a lot of time. With a card machine, your customer simply enters their PIN or taps the terminal with their Contactless card.
- Payment is guaranteed
When a customer makes payment through a debit or credit card, you’re guaranteed to receive payment without any disputes.
- It leads to an increase in sales
Card payments bring human psychology into play. Customers are likely to spend more money if they see that they are not handing out cash directly from their wallet.
- You can plan ahead
When businesses accept payments through cards, they know accurately the transaction processing cost and through this they can plan ahead.
- Less bank fees
Setting up a card machine for accepting card payments means less deposits of cheques and cash, which means less bank fees.
- Improved cashflow
Your business cashflow will improve significantly as by accepting card payments, you will rely less on loans and over drafts.
How can small businesses accept payments through cards?
Accepting payments through debit and credit cards is quite simple for small businesses. You just need to set up a card machine for your business. The process will take as less as 3 days to set up a card machine with a terminal or a day for an online payment gateway.
Based on the system you choose for your business; you will need a few things like-
- You will need to set up a merchant account. It will allow you to accept payments through cards. For this, you will need to provide details to the machine setting company about your business accounts, transactions and income.
- If you wish to accept card payments through your website, you will need to implement a payment gateway on your business website. It will help in processing payments swiftly and securely.
- If you wish to accept card payments through calls, you will need a virtual terminal. It will process the payment by entering the customer’s details.
Type of Card Machines Small Businesses Use
Based on how you like to take the card payments online, in-store, over the phone, or on the move, there are different card payments machines available. These include-
Countertop Card Machine
These kind of card machines are used for processing in-store card payments. Most retailers use this kind of machine for fast payment processing and these are fixed positioned and simple to use.
Portable Card Machine
These machines use Bluetooth to process payments from anywhere in the premises. These are generally used in restaurants, pubs and cafes as they can be carried to the customers for payments.
Mobile Card Machine
These machines are used by on move businesses like taxis, courier services and retailers. These machines can process transactions from anywhere through innovative GPRS technology.
What is cost of accepting card payments?
The cost of setting up a card payment machine depends on various factors, like the nature of your business, revenue, and terminal like counter top, mobile or portable. Further, you will need to consider your transaction processing fees as most of the cost of accepting payment through cards will depend on processing fees.