Most consumers of today shop with plastic. They use either a credit or debit card on a routine basis. This is true whether shopping in a brick-and-mortar shop or shopping online. The acceptance of credit card transactions is an expectation. Any business that does not accept plastic is missing out on sales.
Why Consumers Like Credit Cards
There are lots of advantages to using credit cards when making purchases. Some cards offer reward programs such as cash back or frequent flier miles. Other cards offer low interest rates. But going beyond rewards, credit card transactions are convenient. When a consumer carries a credit card, there is no need to hurriedly write checks or make quick trips to the bank in order to make purchases.
Shoppers appreciate the fact that credit card transactions are fast and easy. In a brick-and-mortar store, all that is required is a quick swipe of the card and the PIN code. With online transactions, the consumer simply enters the basic card information and hits the “submit” button. Either way, the process is quick and simple. In addition, it’s safe and secure.
The sensitive data is encrypted to ensure the security of the information. Safety checks are in place for consumers and merchants alike. The information is checked against the original data on file.
Consumers’ monthly statements provide an itemized listing of items purchased, which makes it easy to keep track of finances. Some consumers make credit card purchases as a way to build and improve their credit score.
Another reason consumers like credit cards is the protection they provide.
If the card is lost or stolen, consumers are protected against fraudulent purchases that may be made with the card.
A study by J.D. Power and Associates indicates that consumers feel positive connections with their credit cards. In fact, consumer credit card satisfaction seems to be on the increase. This suggests that shoppers’ preference for using credit card payments will also continue to increase. Merchants that do not take the necessary steps to accept online payments will lose out!
Benefits to Merchants
Just as credit card transactions offer benefits to consumers, merchants also enjoy some benefits from accepting online credit card payments. Obviously, the benefits begin with making more sales. Since credit card purchases are the preferred method of payment for many shoppers, those merchants that do not accept credit card payments are missing out on lots of sales. When a business makes the decision to accept online payments, sales can potentially double or even triple within days. The increase in profits can be amazing.
This greatly increases the business’s cash flow. There’s no waiting period for a check to clear or worries about sending out invoices. When transactions are made via credit card, they are processed instantly.
It’s been estimated that over 90% of all online purchases are made with the use of a credit card. This means that almost everyone shopping online expects to see a credit card logo as a payment option at whatever website they shop at. That logo helps make the website as well as the business itself appear more reputable and it creates a sense of trust. In simple terms, accepting online payments makes a business seem more legitimate.
Other Considerations
Credit cards make shopping convenient. They are ideal for impulse buying. In general, credit card holders are affluent and spend more freely than consumers who do not use credit cards. In addition, credit cards are usually used for larger purchases. With that in mind, a customer using a credit card may decide to add a few additional items to the shopping cart before checking out.
Accepting online payments is one way to empower shoppers. It puts them in control of choosing how to pay. As mentioned, some consumers may want to use a card that allows them to build reward points, others may prefer to use one that has a low interest rate, and some may just be concerned about building a better credit score.
Merchants that accept online payments make these options convenient for customers. And clearly, businesses that do not accept credit card payments lose money.
About Accepting Online Payments
Accepting online payments is not difficult — and it doesn’t have to be expensive. Merchants have lots of options to choose from. In fact, in order to suit the needs of various businesses, most online payment services offer different plan options. With that in mind, merchants should do some research into what is available to help determine which options are most important and which payment method is best suited for the specific site or purpose.
Things to consider include the expected volume and dollar amount of transactions. Merchants should also consider whether the transaction will be completed or processed at the business website or at the payment provider’s website.
PayPal is a very popular online payment service that offers different service options. Businesses can choose to use PayPal’s free option, which allows merchants to add payment buttons to their websites. The business will be able to accept all major credit cards, debit cards, eChecks, PayPal payments, and more. The free option redirects to PayPal’s site. The Pro option allows merchants to accept payments at the business site. PayPal’s third option is the Payflow Payment Gateway. With this plan, merchants can also accept payments via mail, fax, and phone.
Other online payment processors include Intuit, Authorize.Net, 2Checkout, and PaySimple. To get started with any of the plans is easy. Merchants simply visit the website of the payment service and complete a basic online application.
It’s really easy to set up online payment buttons. Merchants that do not accept online payments are losing money, and as time goes on, their competitors will take over. If you don’t accept credit card payments online yet, it’s certainly time to start!
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Debbie Allen is a content writer, blogger, and Internet marketer who enjoys writing about why processing credit cards online is important. Debbie is interested in topics related to small business management, online marketing strategies, and reputation management. In addition, she likes to write about anything related to lifestyle.