“Cash is king.” In today’s business environment, the saying is just about as dated as “let me check my pager,” or “fax it to me.” Plastic is king today when it comes to payments, and its reign is expected to last. The Nilson Report predicts that credit and debit transactions will more than triple by 2019 compared with 2009 numbers.
Businesses that don’t accept credit and debit are losing business as a result, to the tune of $100 billion in potential lost sales. And they may also be losing out on bigger sales as well, with a recent study showing that consumers spend 12 to 18 percent more on average when they use plastic.
Acceptance of plastic is expected today for just about any retail or service industry, even the smallest of small businesses. If your business does not accept credit and debit, there is little questioning that your sales are suffering as a result.
Most consumers today carry one if not multiple credit cards, and prefer using them over cash for a variety of reasons, such as:
- Tracking of expenses
- Security of cards versus cash in a wallet or purse
- Reward and loyalty programs
- Flexibility for larger purchases
- Easier returns of merchandise
Credit and Debit Transactions Offer Benefits
The truth of the matter is, smart business owners can benefit from many of these features just as much as their customers. Credit and debit transactions provide business owners with more detailed accounting and tracking capabilities, faster payment than older invoice systems or checks, the option to accept international orders, and the ability to reward loyal customers.
Weigh the Options
There are many options for businesses seeking to accept credit and debit payments. For small businesses, it can be tempting to simply go with the lowest-cost solution, but that route can result in missed opportunities to realize benefits like those mentioned above.
It’s important to consider the range of potential benefits that a modern point-of-sale (POS) system can provide. Which of these capabilities would make a difference in your operations? The answers are often different for every business. It is important for merchants to connect their business with pre-authorized, local experts to help identify the perfect solution for their needs and budget.
Accepting plastic is the right call for just about any small business today, purely from a bottom-line perspective. But the benefits multiply when business owners combine credit and debit sales with the broad business intelligence that a POS system can provide.