Canada is the global leader in credit use with credit cards accounting for more than 462 billion dollars in sales in 2016 alone. Yet, there are still businesses that are apprehensive about accepting credit cards. Some business owners chose not to accept credit card payments because they feel that accepting credit cards will not be worth the hassle or cost. However, when looking at the common reasons that prevent business owners from signing up for a credit card merchant account, many of the reasons turn out to be unfounded. Below are some common fallacies about credit card payments that we hope to dismiss.
- The process is very complex: Some might think that adding another form of payment will complicate their business and force them into a complex accounting and payment system . However in reality utilizing credit card payments including online payment portals can offer business owners new tools for billing, invoices and general accounting.
- It’s costly: While there is a processing fee for accepting credit cards, this fee is generally a small percentage of the sale which many business owners recoup by adjusting their product or service price. Also, business owners that have a merchant credit card account can accept credit cards and get the payment within two business days instead of waiting for checks or large cash payments which helps them run their business more efficiently.
- Payment method does not matter to customers that much: Research shows that 78% of people surveyed prefer using credit cards over other forms of payment. Credit Cards are a preferred form of payment because not only are credit cards more convenient for customers, they offer rewards programs and leave a digital trail which helps users keep better track of their finances.
- Too risky: With major data breaches being announced more regularly and advertising for identity theft protection at an all-time high, many businesses may feel like accepting credit cards opens them to too much risk. However, by complying with simple credit card security tips including by using terminals with enhanced security features, business owners minimize the risk that their data will be stolen.
Do not let misconceptions or lack of knowledge prevent you from an opportunity to grow your business by adding credit card payments. While it is natural to have questions about trying something knew for your business, talking with a knowledgeable merchant account agent can help you answer any