Small companies may take credit card payments using a smartphone app by utilizing an online merchant gateway like New Payment Innovation, by setting up a POS system with a merchant account, or by deploying a mobile card reader. Small companies may benefit from learning how to take credit card payments by increasing sales, improving cash flow, and providing a better customer experience. However, according to a recent research, 55 percent of small companies do not accept credit card payments.
Choose a method for accepting credit card payments
First, figure out how you’ll let your customers pay with a credit card. You may take credit card payments in one of three ways:
- Online credit card payments
- In-person credit card payments (credit card machines)
- Mobile credit card payments
Accepting Credit Card Payments over the Internet
You’ll need to join up for an online payment gateway like New Payment Investment to take credit card payments online. These services function by taking care of your clients’ online payments and charging a charge for each credit card transaction your company accepts. You probably already have access to online credit card payment solutions if you utilize a cloud-based accounting solution with app connections.
With more and more small businesses adopting the cashless payment methodology, the question of whether or not your business should stick to the traditional payment methods is losing its value. Thanks to the pandemic and changes in consumer behavior, the payments through online transactions exceed the cash payments and the trend is here to grow. According to the reports show, the year 2020 alone, witnesses as many as 780 billion online transactions from millions of businesses worldwide. The number was expected to further increase up to 13% in the coming years.
The trends suggest that relying on your traditional payment methods could prove as a slow poison to small businesses as cash payments are only expected to diminish in the future. Understandably, the only category of businesses that will survive and flourish will be the ones that took a timely adaptation to enable parallel face-to-face and online transactions. Added flexibility, business security, and increased sales. Following are the best benefits your business can avail yourself by using NPI card machines for online payments:
The Benefits of Card Machines for Small Businesses
The Benefits of Card Machines for Small Businesses are acknowledged the most by all the customers that show up at small businesses without cash and look for where to swipe their cred cards. If you are a small business thinking of getting your NPI card machine delivered for your card payment. Here are all the benefits you are signing up for:
Establish Your Business’ Legitimacy
Accepting credit cards is no more a show-off. Instead, it is a sign of legitimacy that helps your customer invest their confidence in you before their take out their card from their wallets. When a customer enters your store and looks at the logos of several cards displayed on the counter, it instantly grabs their attention. The more card bands your business accepts, the easier your customers will attach their blind trust with your business. It all starts with purchasing a card machine from NPI.
Quick and Easy Payment Processing
When you provide your customers with extra payment alternatives, the decision to buy your product/service becomes way easier. Your NPI card machines don’t just enhance your customer’s buying experience but also increase your sales by simplifying and optimizing payment processes. For all your target customers who don’t like to carry a lot of cash with them, allowing them to do card payments will make them come to you again and again.
The term impulsive purchasing describes the customers’ behavior of buying more than they opted for. The fact that no customer wishes for searching for an ATM near their buying spot. Adding flexibility in terms of payment methods allows customers to buy extra goods without worrying about cash in hand. All the major brands that sell their product online do the same by accepting all prevailing modes of payments and providing freedom of choice in terms of payment options to their customers.
Add to Business Security
If there is something in common between small and large businesses, it would be security. Though, with the increase in cash flow in a business, companies hire security arrangements to cope with the unprecedented and unfortunate events. Having a cashless business can always keep you out of the vulnerability zone. What is better than having peace of mind that all your business transactions are secure and are running seamlessly?
The best a card machine does for your small business is that it cut down the processing time for the customer and the operator and makes the transactions quicker and easier. Since the customers don’t require to stand in the line at their ATMs to withdraw cash to buy your product/services, card machines and contactless payment terminals make all the time they spend at your business completely worth it.
Accepting Credit Card Payments in Person
A point-of-sale (POS) system is required to take credit card payments in-store using card payment machines. To handle credit card payments in person, a POS system consists of hardware (card swipe machine) and software. Customers may use the credit card machines to enter or swipe their credit or debit card, and the transaction will be authorized or refused instantly. If a transaction is accepted, the monies will be received by your merchant account and sent to your company bank account within a few days.
Accepting Credit Card Payments from Mobile Devices
A mobile card swipe machine is required to take mobile credit card payments. A mobile card swipe machine is a small gadget that connects to your smartphone and works in conjunction with a credit card app to take credit card payments everywhere there is an internet connection.
Why Credit Card Payments Using Credit Card Machines Should Be Accepted by Businesses?
Accepting credit card payments gives your customers more freedom and convenience while also benefiting your business. The following are some of the advantages of taking credit card payments for small businesses:
Accepting credit card payments is a feature that might help you attract new customers and increase revenue. Accepting credit card payments can enhance sales for a firm that sells things since customers prefer to spend more when they pay with a card.
Enhances the Customer Experience
Giving your customers a variety of payment alternatives, card payment machines, improves their experience and increases loyalty. Many customers choose to pay using a credit card since it allows them to process the payment quickly and simply online rather than having to fill out and submit a check.
Enhances Cash Flow
Unlike checks, which can take anywhere from five to ten days to clear via your bank, credit card payments machines are handled promptly. Within a day or two following the transaction, credit card payments are usually processed and the funds show in your company bank account.
Helps you save time
Most credit card processors make it easy to take credit card payments with only a few clicks, saving you time. You won’t have to spend as much time asking payment for invoices or going to the bank to deposit cheques.
Increases the security of payments
Accepting credit card payments can reduce the amount of cash on hand at your business, lowering the risk of theft or loss. Although taking credit cards carries security concerns, fraudulent transactions may often be recovered with the help of a merchant service provider.
What Are Transaction Fees on Credit Cards?
The processor charges credit card transaction fees every time a firm accepts a credit card payment. For every credit card payment that is processed, there are two sorts of fees: the processing rate and the transaction fee.
The processing fee is a percentage levied for each payment depending on the average transaction amount for the firm. Every time a business takes a credit card payment, a transaction fee is levied.