The Benefits of a Credit Card Facility for Your Business

Some business owners worry that credit card transactions produce too much paperwork. But if you keep good records this may not be the case. Any increase in administrative work could be more than offset by a substantial growth in revenue. Of course, to make up for the credit card issuer’s fee and make some additional profit you need to increase your sales.

A lot of people buy on impulse. This is particularly so with clothes and shoes. If they see something they like to want to buy it there and then. They may not have enough cash with them, and do not want to go the bank, in case the dress or jacket they want to buy is gone when they get back. This could also be true of buying antiques.  Or they may not have enough money in their account and want to pay by credit card.

A credit card facility gives a much wider pool of customers through mail, email, fax or phone, as well as in person. Many people now shop online and may not even need to see or touch the physical object you are selling. They can pay via your website and have the goods delivered for an additional fee. It saves the customer time, money and stress. They do not have to go out into the traffic, pay for petrol and parking or be squashed in a train or bus. And if there is an accident when you making the delivery and the goods are damaged the customer is not liable.

A credit card facility, when used wisely and effectively, can make the difference between your business succeeding and failing. To succeed in business you need to form a relationship with your customers. It is well-known that established customers provide far more revenue than new ones. They may also enable you to find new customers if they like your product, service and price, by telling their friends, family and workmates.

Once you have a person’s credit card details, including address, these can be entered into a database for direct mail or email marketing to inform them of new products and services. You can ask them if they wish to be excluded from marketing, but most people who have already bought from you will not mind if asked. Because the marketing is targeted it is not junk mail or spamming.

You can use this marketing to offer special deals such as discounts or loyalty programs. But you should be careful not to let these deals affect your income too much.

Summary

• There is a fee associated with having a credit card facility for business.
• Benefits included finding more customers than from cash and cheque alone.
• A credit card facility is especially useful for online businesses.
• It enables you to conduct direct mail marketing, to inform your established customers of discounts and loyalty programs.
• Paying online by credit card with delivery provides convenience for many customers.

Article correct at its author date: Jan 2007. Copyright Virtual Office Space, Any unauthorised reproduction of this article will be prosecuted to the full extent of the law. Credit Cards Australia.

If you would like to display this article on your web site please email us.