Electronic payments have overtaken cash as the most popular payment method in the United States.  Sixty percent of retail purchases are now completed with a debit or credit card.  By comparison, only about thirty percent involve cash. What this means to modern business owners should be patently clear.  They must be able to process credit cards in order to compete in marketplace where customers hold all of the cards

Yes, the modern customer is finally, undeniably, always right. Businesses must work hard to keep them loyal. One easy and affordable way to improve customer loyalty is to offer shoppers multiple payment options.  Survey after survey has confirmed that shoppers appreciate when businesses accept plastic. On the flip side, when their preferred method of payment is refused at register, they almost never return.

The Pros
Shoppers spend an average of twenty dollars more when they use a credit card instead of cash. They are also far more likely to fall prey to impulse buys. If this sounds a bit shady, well, it just may be. But it is also what it takes to make it in business today. Customers prefer plastic to cash because it gives them the option of enjoying something today and paying for it later. Business owners who ignore this simple fact often go the way of the dodo, or at least their companies do.

The Cons
Processing plastic costs money. Every time a credit card is swiped, a merchant service provider must be on the other end to either approve or decline the transaction. The provider is also responsible for collecting electronic funds and depositing them in the merchant’s bank account. For these vital services, the provider charges a number of variable service fees. The costs of these fees depend on the risk of the industry the merchant competes in and the way the seller accepts payments.  As a general rule, if the merchant accepts payments in person, he will receive much lower service fees than if he processes plastic online or over the phone.

For traditional brick and mortar business owners, accepting electronic payments couldn’t be any easier. The merchants need only apply for an account at a bank or authorized financial institution. Just as they are with a regular bank loan, rates and fees are based on the applicant’s credit and business history. A business owner with an unblemished history should have no problem securing rock-bottom rates. However, prices are typically a bit higher for online sellers.

Because credit card fraud and theft are much bigger problems on the internet, virtual merchants often have to pay more, especially if they work in risky industries. The threat of returns and disputed charges are ever-present online, and merchants must continually update the security on their websites.

When searching for an online service provider, it is always a good idea to find one that can help with website development. Accepting payments on the internet is more complicated than it is in person, for obvious reasons, and a payment gateway is generally required. Fortunately, many of the top providers now offer this service completely free of charge.

Merchant services accounts can help sellers of sizes grow their customer base and improve monthly sales volumes. Start accepting credit cards today and provide your customers with the convenience they deserve.

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