Does your business only accept cash payments? If yes, it’s time to evolve.
In the current digital era, the payment landscape has changed. Credit cards have unequivocally evolved as one of the most popular modes of payment.
If you are already using credit cards to process your business transactions, there are many more benefit you accrue due to your POS machine apart from the convenience it offers.
Here are top 10 ways a credit cards payment system can help your business.
1. Increased Sales
Accepting credit cards automatically expands your client base. Also, thanks to the growing trend of e-commerce, a large number of people shop online and pay with plastic money. Businesses that have the provision of payment via credit cards are more likely to boost their sales.
2. Credit Cards Grab Impulse Buyers
Customers tend to make impulsive purchases and overspend with credit cards. They appreciate the flexibility and prefer swiping the cards as opposed to carrying huge wads of money in their wallets. In such a scenario, cash-only operations can deter potential customers.
3. Improved Cash Flow
Credit card payments are processed electronically and deposited directly into the merchant’s account. The entire procedure is quick and efficient. Since there no hassles of cheque clearance, invoice collection, sorting of bills, counting and transporting money it improves cash flow.
Also Read: The Uprising Benefit Of Digital Payments – Availability Of Microloans
4. Keep Up With Competition
The business landscape is all about challenges, cut-throat competition and staying ahead of the curve. By offering consumers easy payment options, you can meet the competition head-on and turn the tide in your favour.
5. It will Legitimize Your Business
Entrepreneurs strive hard to establish a legitimate image of their business in the industry. Displaying credit cards logos of reputable brands like Visa or MasterCard adds credibility to the establishment and instills a sense of trust in customers.
6. Convenience
Consumers are always looking for fast service and a convenient method of payment. Credit cards do this and more. All it takes is a quick swipe or tap of a phone to complete a transaction. And yes, additional perks like reward points, cash back, airline miles etc. further encourage them to use their credit cards for purchase.
7. Improved Productivity
The rigmarole of processing cheque, managing accounts, and visiting banks involves a lot of time and money. Credit card payments are automated. The customer punches the credit card number and the transaction is approved or rejected within a few seconds. In short, its quick, safe and enhances productivity.
8. Quick and Easy Set-up
Contrary to belief, incorporating credit card payments is easy and uncomplicated. The application for the merchant account is processed quickly and the system becomes operational within 24 to 48 hours.
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9. Reduced Cost
The system of credit card payments is automatic and doesn’t involve the dispatching of invoices. This helps to reduce cost by saving on expenses like postage, paper, printer and extra workforce.
10. Loan Eligibility
Having digital footprints helps the business to get eligible for business loans in future. Digital Lending companies provide instant unsecured loans basis the transactions recorded digitally.
Now that you are aware of the many benefits of choosing plastic over paper, take the plunge and start offering the payment option to your customers. It will definitely give a fillip to sales and help your business grow.
11. EMI Facility
If you’re considering a significant purchase and don’t want to use up your savings, using your credit card allows you to delay the payment. You can opt for equated monthly installments (EMI) to spread the cost over time, preventing a large one-time payment that could impact your bank balance. Choosing EMI on your credit card is a more cost-effective option compared to taking out a personal loan for purchases like a television or an expensive refrigerator.
How to use credit card in a right way?
Using your credit card wisely is essential to avoid accumulating debt.
| Read the Fine Print: Be aware of all charges and conditions associated with your card by reading the fine print. |
| Spend within Your Means: Only spend what you can comfortably pay back to prevent getting into unnecessary debt. |
| Limit Daily Purchases: Avoid using your card for daily expenses to keep track of your spending habits. |
| Monitor Your Credit Limit: Regularly check your credit limit and cut back when you exceed 40% of the available limit. |
| Opt for EMI for Large Purchases: Choose the EMI option for significant purchases to avoid paying interest on outstanding amounts. |
| Keep a Buffer for Emergencies: Always maintain at least 40% of your credit limit for unexpected emergencies. |
| Plan Your Purchases: Use your card for planned purchases and resist impulsive buying. |
| Pay Your Bills in Full: Aim to pay your credit card bills in full each month to avoid accumulating interest charges. |
| Avoid Missing Payments: Missing card payments can lead to higher charges and penalties, so ensure timely payments. |
| Seek Assistance if Needed: If you find yourself overspending, approach your bank for help. They may assist in creating a pay-back plan with a fixed interest rate to prevent further debt. |