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Old 26th June 2007, 04:24 PM   #1
sannwood
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Default Why Every Business Should Accept Credit Cards

Recently, on the Small Business Trends Radio Show, we had a very informative guest on. Our featured guest was Samuel Peery, Vice President of Marketing at ProPay, Inc.

Samuel discussed the inís and outís of merchant credit card services. Merchant accounts are simply an account that allows you to accept credit card payments - online or off.

Samuel explains how some services differ from other services offered online today and the benefits of accepting credit card payments. His insights were very helpful in understanding the process and discovering what your personal needs are.

Two that really struck home are referenced below:

Quote:
Retail businesses can increase their sales by accepting credit cards. Statistics show that the average credit card order is 3 to 4 times larger than the average check or cash order. Accepting credit cards as a form of payment can increase sales anywhere from 40% to 400%.

Service oriented businesses can benefit by simplifying collections and increasing their cash flow. Statistics show that 24% of accounts receivables are 90 days old. This number can be as high as 75% at times. By accepting credit cards, service businesses can get paid much faster.
As well, ProPay is offering Small Business Trends Radio listeners 50% off until June 30th.

To take advantage of this special offer, please visit the Small Business Trends website and listen to Samuel's interview.

And share your experiences regarding merchant accounts here with us. Do you currently have one? Are you satisfied with it? Are you using, or have you used, ProPay's services?

Let us hear from you - Thanks!

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Old 26th June 2007, 11:12 PM   #2
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Thanks for the info on ProPay. I certainly will be looking into it.

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Old 27th June 2007, 08:57 AM   #3
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Staci, while what you show in the quote is true, they have been tossed out by card providers and processors for years. Again, not arguing with them, but there is a much larger reason for accepting plastic in the 21st century. Much larger!

That is debit / check cards. When you see the fast food chains and other "under $10 average ticket" retailers promoting swiped transactions, it is because they have been driven to it by the lack of cash in peoples' pockets.

Any retailer will tell you that checks are becoming more and more uncommon. Those that are written are generally written by "gray haired old ladies". Everybody has plastic.

If you don't take plastic, you could be losing even more, as gift cards become more and more popular. Not just branded, store specific cards, but "use them anywhere" cards, as well.

The few remaining holdouts - "I been in business 40 years and never took no cards, never will." types simply have no idea how much refusing to pay that 2 percent or so has cost them over the years, nor how much more it is costing them now.

Frankly, Samuel and his buddies need to update their spiel. What they say is true, but it's far from the whole picture.

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Old 27th June 2007, 09:10 AM   #4
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As a current ProPay customer I can highly recommend their services. Easy to set up & use. No need to purchase high cost equipment either.

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Old 27th June 2007, 10:34 AM   #5
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Hi Pete,
And thanks for your contribution. The items quoted are only a small sampling of many reasons discussed during the show itself. During the interview, Samuel touches on a variety of additional reasons that businesses should accept credit cards - even the reason you've stated here.

I agree, many business owners do not realize how many sales dollars they are actually loosing by not accepting plastic as a form of payment. During the interview, Samuel actually points to a particular customer who lost an $800 transaction due to the fact that they did not accept credit cards as a form of payment. The next day, they signed up for an account.

The fees are minimal in comparison to the sales that are generated.

Additionally, convenience, speed, and electronic records are yet more benefits that provide increased customer service.

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Old 27th June 2007, 10:43 AM   #6
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Not to mention it's a whole lot easier to initiate a chargeback than to go through the hassle of trying to get a cash refund.

Of course, that's a downside for the merchant.

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Old 27th June 2007, 11:12 AM   #7
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I haven't listened to the show, so not sure if mentioned there - but one 'force at work' here to me also is those who want to purchase on credit card to build mileage/bonus points. I have customers who prefer to pay me regularly by credit card as it helps them get to hawaii on vacation (or other reward incentives) a lot quicker. These people become power users of the credit card - and also your business to an extent because of the incentives provided.

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Old 27th June 2007, 03:35 PM   #8
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Amen! I sell custom barcode labels to a lot of giftware salesrooms / sales reps to the tune of $ 1,000 + per order. Virtually every one has an AMEX card and wants the mileage. At my expense, naturally.

For those not aware. even with the VISA / MC premium rewards cards the merchant's rate is about a point higher. You are sending those folks to Hawaii!

And you've got no choice - if you take any of their cards, you have to honor them all.

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