November 7, 2010
The benefits of accepting credit cards?
naomi asked:
Ok, so we have got an increase in takings or cashflow, but what other reasons could you put to someone as a reason to accept credit cards on their website?
Ok, so we have got an increase in takings or cashflow, but what other reasons could you put to someone as a reason to accept credit cards on their website?
Filed under ecommerce by on Nov 7th, 2010. Comment. 
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The first benefit that comes with credit cards is absence of cash. No need to carry wallets stuffed up with cash, carry plastic instead. It is possible to shop with them, buy services, pay for dinner, buy things online or even withdraw cash from banks ATM’s. The modern day security methods implemented with credit cards make them one of the most secure methods of carrying financial transaction. Coupled with fraud protection, insurance benefits and various other value adds they offer better service. The reward programs and tie-ups with specialty stores provide lots of savings while you spend with your credit card. Some companies even offer cashback. It means you can get some percentage of cash back when you spend a certain amount with the credit card.
Judicious use of credit card helps in building the credit history of a person. The way you repay your credit card debt, is reflected in your credit report and will help you get good loans at better terms in future. Read more from:
It’s not clear whether your point of view is customer or merchant. But, either way, credit card processing is really the only practical option for ecommerce. In the “old days” mail order used to work with checks and money orders. But modern ecommerce works on convenience and instant gratification. 95% of my website customers use credit cards for purchasing.
If you’re just starting out or if your business is small you can use a 3rd party processor such as Paypal. A very flexible new option is a service called Accept-by-Phone that lets you process credit cards from any touch tone phone, including cell phones. This adds a whole new mobile dimension to ecommerce.
There’s a are oodles of reasons to accept credit cards. For merchants and customers, both would benefit from speedy check out times.
How?
Imagine you have a physical store and you have 10 customers inside and only one cashier – if in the event you have no spare change, you’d have to run off to break your money (coins, smaller bills) – an appalling behavior for merchants, and customers are likely to get irate. This wouldn’t happen if you accepted credit cards though. Credit card approvals/authorizations are done in seconds so checking out is a breeze!