3 Reasons Why Retailers Love Credit Cards (And you should, too!)
Some retailers sell on a cash only basis to avoid the expenses of credit card processing. Those who do offer credit cards know that it’s worth every penny.
Each year more consumers are choosing to use plastic options instead of cash, because they want a more convenient and safer way to shop. And as you probably know, successful retailers become successful by giving customers what they want.
An article at Forbes.com explained that over 55% of small businesses don’t give customers a plastic option and they went on to ask, why? The article further explained how just about every American has a debit or credit card and 60% of all point of sale transactions are completed with plastic. Those are two good reasons why retailers love credit cards (and you should, too!)
Here is some additional credit card information to consider.
- Credit/debit card use is increasing
A December 2013 study conducted by the Federal Reserve System found that “…credit card transactions grew at an annual rate of 7.6 percent…” from 2009 to 2012. Plastic transactions–debit and credit card–have increased more than any other form of payment.
- E-Commerce sales are up
The U.S. Commerce Department’s report on “Quarterly Retail E-Commerce Sales 2nd Quarter 2014” showed that second quarter e-commerce sales totaled 75 billion. That’s a 15.7 percent increase over e-commerce sales for the same period in 2013. If your business doesn’t have credit card capability to capture online sales, you’re missing out on a growing stream of revenue.
- Non-Cash POS transactions exceed cash transactions
An infographic sponsored by Communitymerchantsusa.com explains “The Benefits of Small Business Card Acceptance.”
Here are a few key points:
- 69 percent of consumers age 18 to 34 and 58 percent of consumers 35 to 44 say they will only shop at retailers with multiple methods of payment.
- By 2017 total cash POS purchases are projected to drop to 23 percent while total credit card POS purchases are expected to increase to 33 percent.
- Credit cards offer a number of consumer benefits: secure access to funds, safety, help with budgeting, accepted worldwide
- Merchants also benefit from offering credit cards: increased likelihood of impulse purchases, contributes to increased average sales, faster checkout
Why do retailers love credit cards?
Retailers love credit cards because there’s a long list of benefits that come with offering the option to small business customers. If you believe that expense avoidance is a valid reason for not offering the service, perhaps it’s time you took another look at the facts.