Investing in credit card acceptance is part of customer service
July 29, 2013

Small and medium-sized businesses that haven't invested in credit card processing continue to see consumers go to retailers that do accept credit card payments at the point of sale. While some SMBs may not think that investing in electronic check processing and payment integration are valuable sales strategies, not doing so can result in lost customer loyalty and decreased revenues. According to Small Biz Trends and a recent report from RateCreditCardProcessing.com, accepting plastic can make smaller companies more competitive in the retail market by improving their customer service.

Plastic acceptance vital in today's retail environment
RateCreditCardProcessing.com recently released a consumer survey that highlighted the benefits of allowing customers to pay with debit and credit cards. According to the survey, consumers are more likely to make impulse purchases and spend more on goods or services if they use a debit or credit card rather than cash. In fact, the survey found that not only is it more convenient for consumers to use plastic, it is a more gratifying form of payment compared to cash.

"Paying with cash - literally handing over the bills - has been linked in brain scans to cause pain impulses that paying by credit card does not cause," an unidentified spokesperson for RateCreditCardProcessing.com said. "If a customer is forced to withdraw cash instead of using a card as payment, that business will lose sales. Customers who have time to get money also have time to reconsider their purchase, be approached by competitors or simply forget the urgent need for the product or service."

Small Biz Trends suggested retailers get out of the mindset that cash is king and realize that accepting plastic through credit card processing systems can increase overall sales. According to the website, allowing customers to use their preferred payment method is more than just another way to drive sales, but is also a form of strong customer service. Plastic is more convenient for customers than cash and allows consumers to purchase goods immediately rather than having to find an ATM to withdraw money, which results in stronger customer engagement. 

Without investing in credit card processing, SMBs may see consumers go to competitors or larger retailers that offer the payment method. Customers seek out businesses that utilize multiple transaction options, and when smaller retailers invest in integrated payment systems, they are able to increase their customer base, improve sales and see happier customers. 

Nexus: G-WEBCD2