The Pros and Cons of Accepting Credit Card Transactions

Filed under: Credit Card Processing

Tagged with: · ·

Most business owners will agree that “cash is king!” When a customer walks through the door with cash for the transaction, it can keep things clean and simple for everyone involved. But, we live in a digital world, and most of the transactions are done using credit cards. As a business owner, it is essential that you accept digital payments, or you could lose out on potential sales.

Here are a few pros and cons of accepting credit card payments in your business:

Pros of Credit Cards

  • Flexibility: Consumers prefer the flexibility of paying with a card. So, you will cater to the needs of your customers by accepting these types of payments.
  • Legitimacy: By accepting credit cards, you add legitimacy to your company. Your customers will see that you are serious about catering to their needs and payment preferences.
  • Spending Amount: Did you know that customers tend to spend more money when they are using a card? A cash line makes it possible for people to impulse-buy products and make larger purchases. As a result, the average sale will increase.
  • Streamline Payments: When a credit card is swiped, the transaction can be completed in mere seconds. There is no need to count out change or have the customer spend time writing a check.

Cons of Credit Cards

  • Risk: Even though security measures are in place, the risk goes up with digital transactions. You might be facing problems if you encounter situations of identity theft or fraud.
  • Fees: When a credit card transaction goes through, fees will need to be paid on the amount. But, these fees are usually offset by an increase in average sales. Plus, you can find a credit card processing company that offers competitive prices to decrease your costs.
  • Complicated: It can be complicated to know the best ways to accept credit card payments. Instead of trying to reinvent the wheel, make sure that you are working with an experienced credit card processing company.

Do you need help comparing your options for credit card transactions? Call Rick Johnson with National Merchant Services to learn about setting up a merchant account: 888-891-0811