If you own a business, perhaps you’re considering the possibility of accepting credit card payments from your customers. Should you take that step forward and implement credit card processing with your business? Or should you just stick to the traditional methods of payment which are cash and check payments?
In this article, let us discuss the pros and cons of credit card merchant processing to help you decide whether or not it’s the right time for you to accept credit card payment.
The Cons of Credit Card Payment
Let’s start with the consequences. What can you expect from credit card merchant processing?
Processing Fees. When customers pay in cash, the seller does not have to worry about extra fees at all. However, accepting credit card payments would mean paying the processing fees.
The specific cost may vary depending on your chosen merchant account provider or credit card processing company. On the other hand, if you’re going to use a third-party credit card processing service like PayPal, the fees may prove to be even more costly for each credit card transaction.
Accounting Issues. Since you will be accepting two different methods of payment, you will need to monitor two types of accounts as well. At first, this can be demanding especially if you’re not familiar with credit card processing but as you learn the ins and outs, you should be able to monitor your accounts more easily.
The Pros of Credit Card Payment
What about the positive aspect of credit card processing? What are the advantages of offering credit card payment to customers? Consider the following points:
Flexibility. By accepting credit card payments, you are offering customers more than one way to purchase. If they like to purchase your product but do not have cash to do so, they can simply charge the bill to their credit card and pay it at a later time.
Safer. For safety reasons, many consumers today prefer to shop with their credit cards rather than bring cash. Meanwhile, the risk of losses is greatly reduced for business establishments or shop owners that hold less cash in their premises.
Convenience. A lot of people who don’t have the time to go out may prefer to purchase online. If you have a business website, customers will have the option to purchase online if you accept credit card payments.
Do you have a tip you want to add to the list? Please feel free to share by leaving a comment.
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About the Author:
Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.