Using Credit Cards—A Necessity
If your e-commerce doesn’t accept credit cards, it might just be time to reconsider your decision. Credit cards increasingly popular as a safe mode of payment; it’s time that you start accepting these unless you want to lose out on sales. While it’s true that accepting credit cards costs you some money, the benefits you’ll reap far outweigh these costs.
A majority of payments online are made through credit cards, as customers consider this to be the safest option. No e-commerce merchant can afford not to accept plastic. Even e-commerce store builders like Shopify, Magento, BigCommerce offer in-built POS systems with their stores, to make selling easier for you.
Accepting credit cards opens up a host of benefits for the ECommerce store owner. We take a look at 7 of these here.
It’s the end of the month, and a customer browsing through your website finds a product that she really likes. However, due to a lack of cash in hand, she thinks of using her credit card, so that she can pay during the next month.
You’ll lose customers like this unless your store accepts credit cards.
Your customer base broadens significantly once you start accepting credit cards. You’re also able to cater to those customers who want to make a purchase on EMI. Both these facts ensure higher sales and better revenues.
2. Credit Cards Encourage Impulsive Buying
Payment through credit cards allow customers to pay later; they still get to buy the product then and there. This means that, even when a customer has a cash crunch, they are able to make the purchase using a credit card.
Customers are also comfortable with plastic transactions, as they can avoid the hassle of drawing money from the ATM. Numerous studies have established that customers tend to spend more when they use credit cards than they do paying cash. This because a credit card provides a credit line, letting customers shop when they have no money.
3.Credit Cards Are A Great Way To Legitimize Your Business
Though the e-commerce space is flourishing, there are people who are simply uncomfortable with the idea of shopping online. However, by accepting credit cards, you’ll be able to establish a status in your industry.
You’ll get to display the logos of the credit cards you accept on your site; these are known to grab a customer’s attention, developing a sense of trust in them. Customers trust the credit cards they carry in their wallet; that trust gets transferred to your store when it accepts these cards.
And when they trust you, they’re likelier to buy from you.
4.Eliminates The Risk Of Non-Acceptance Of Products
A major problem that e-commerce store owners offering cash-on-delivery (COD) services face is that their products can get refused at delivery without any reason. When this happens, you take up the hassle and costs that go into securing the product from the warehouse, packing it, and shipping.
When you start accepting credit cards, you avoid this. When a customer has already paid, their money is already with you; you can use it for the logistics of returning the product. Also, customers are less likely to return products they’ve already paid for.
5.Improve Cash Flow
When a customer pays through their credit card, the transaction is typically settled quickly. You get the money in your account within a couple of days. This means you don’t have to wait for the cash sent by your customers, or for the courier agency to collect the money and deposit it to your account.
6.Credit Cards Are Inexpensive
Many small entrepreneurs think that accepting credit card is expensive. However, the credit card field is highly competitive; there are numerous merchant services offering credit cards.
You always have the option to compare the fees charged by the various merchants with the benefits they offer. Credit card processing rates are quite low; even the smallest e-commerce entrepreneurs can afford to accept credit card payments. You’re most likely to experience an increase in sales when you start accepting credit cards; this will compensate the processing fee you pay for every transaction.
These are only some of the benefits of accepting credit cards. This is a great way to boost your sales, even if you ignore the other benefits.
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