Credit card acceptance is essential to consumer satisfaction
May 10, 2013

Most small- and medium-sized businesses understand the importance of accepting plastic at the point of sale for customer satisfaction and retention. In fact, a recent study found not accepting credit card payments can lead one in five customers to walk out the door without purchasing anything. Electronic payment solutions that allow companies to accept credit card payments are vital in a recovering economy to drive sales and retain business.

Credit card acceptance is vital to business
A new study from the United Kingdom found retailers that did not accept plastic at the point of sale lost 21 percent of their customers within the previous six months. According to International Supermarket News, 19 percent refused to enter the business' store again because they were unable to pay for products using their preferred payment method.

The study reviewed annual revenue losses caused by the retailer not taking credit cards and found retailers would see an additional 120 million transactions annually if they accepted plastic at the point of sale.

In addition, 61 percent of U.K. shoppers reported they would have spent more at a retailer if they had been able to utilize their preferred purchasing option: credit cards. The study estimated 98.8 million opportunities to increase sales were passed up because companies did not have electronic payment solutions.

The majority of consumers, or about 70 percent, also reported they would rather pay with a card than cash for daily items.

In London alone, the study projects a shopper walks out of a business around 8.6 times a year because it doesn't accept cards.

Prevent lost sales with electronic payment processing
Companies that accept cards tend to see an increase in sales after implementing the purchasing option. Integrating payment processing software allows small businesses to satisfy customer purchasing preferences. Many consumers carry cards for financial security and are more likely to purchase larger quantities of items from a store that allows them to pay with plastic.

Employing credit card purchasing software can help SMBs drive profits and reduce the likelihood of customers walking out of their stores without purchasing anything. Companies may also want to consider ensuring all consumers are aware the business accepts credit cards to prevent misconceptions. Customers will likely reach the point of sale rather than just browse if they understand they have several payment options.

Nexus: G-WEBCD2