When you are just getting started with your business, it can be a lengthy and complicated affair to sort out all the financial and legal aspects involved. These matters can be frustrating and feel as though they are taking you away from what you love – and need – to do in order to make your company take off and grow. Therefore, the whole idea of undertaking extra tasks can be a tempting one to ignore. But opting to be a cash-only business can hurt you in several ways.
These days, fewer people carry cash, preferring the security of having trackable and stoppable credit or debit cards. If there is no card payment processing machine available, they will often seek out another business that can meet their needs: one that has a credit payment facility. Sometimes, they might agree to go off in search of an ATM to withdraw cash, but having left your premises, they may then decide that they do not need your products or services so urgently after all. Or worse, they may find a similar company that already takes card payments and decide to give that business their money.
Card payments will comprise anything from 50% to 80% of your income, with as much as 75% of all customers now preferring to pay by card at all times – can you really afford to lose the chance to target that demographic?
Importantly, when choosing your credit payment system, make sure that you opt in for contactless card payments too. More and more people, having already abandoned cash, are now abandoning carrying their cards altogether, instead making use of the new smartphone technology that allows them to make payments using their mobile phone or their smartwatch.
No matter how you lose the sale, it will always sting. Don’t lose business from people who actively want to buy your product. When you consider it like that, investing in a credit card payment system suddenly does not seem time-consuming or frustrating. Instead, it becomes almost a matter of urgency.
A final reason for opting in to a card payment plan is to appear professional – cash-only businesses traditionally have a rather seedy air to them, which is not a desirable association for any fledgling company.
Investing in a card payment system is unlikely to be too expensive and the benefits will definitely outweigh the slight cost. In fact, most companies ask for between 1% and 2% for credit card payments, and between 0.5% and 1% on debit cards. No matter how many other tasks you have ahead of you, make sure to include this high on the to-do list.
August 28, 2018