5 ways accepting credit and debit card payments helps your business stay resilient
Resilience–the ability to bounce back from adversity–is essential to running a successful business. According to Forbes, especially during uncertain times, this quality can help you avoid stress and anxiety and improve your ability to rise up to face challenges.
How do you build resilience? The American Psychological Association reports that general wellness, work-life balance, and a support network provide the foundation. When it comes to your business, anticipating trends, focusing on what you can control, and regularly reflecting on what’s working and not working is key.
But perhaps one of the more underrated ways of building resilience is flexibility or a willingness to adapt. Change, after all, is inevitable in business.
For us at Invoice2go, a BILL company, we’re always thinking about helping small businesses get paid. How customers prefer to pay for goods and services has changed significantly in recent years. Cash is no longer king–most consumers prefer to pay by card. And while card payments may sometimes get a bad rap, they can actually help you improve cash flow and reduce admin.
So today, let’s look at 5 ways card payments can help your business build resilience by meeting your customers where they’re at. Let’s dive in.
Invoice2go Money Card Payments can help you reach more customers, boost cash flow, and simplify admin.
1. Improve your ability to increase sales
When did you last pay cash at a restaurant or grocery store? Chances are it’s been a while. In 2016, 28% of American consumers said they used cash for most purchases. By 2021, that number had dropped 13%. Your customers will likely prefer cards to paper, so why not provide the option?
Credit cards make it easier to complete large transactions, so accepting them may encourage bigger purchases. Researchers from MIT discovered that consumers spend up to 100% more when using their credit cards instead of cash. Also, because customers can earn rewards from their cards in many cases, accepting them can encourage business.
2. Speed up payments to strengthen cash flow
Some businesses still prefer to use checks to pay bills and cover the cost of contracts. But checks take time, especially if you’re waiting for a snail mail payment.
Software like Invoice2go enables you to generate customized invoices and send them electronically to your customers via SMS or email. Clients can then easily pay directly from the invoice. Using this method, you could receive payment the same day. This payment will automatically reconcile with the invoice, so there’s no extra admin for you to do.
Also, if a customer is late on a payment, you can send automated reminders, meaning you’ll spend less time chasing payments.
3. Enhance your professional image
It may sound obvious, but consumers want to spend their money at businesses they trust. Accepting cards is a subtle but important way to demonstrate that you’re a pro running a full-fledged business. It may also give you a boost of confidence. Consider displaying credit card logos on your website, invoice, or storefront.
4. Stay on a level playing field with your competitors (or even get an edge)
According to Business News Daily, not accepting card payments could hurt your bottom line. Ensure that you stay current with consumer expectations and keep up with your competitors—if not outdo them. For example, if your competitors don’t offer a variety of payment options and you do, you could potentially have an edge.
5. Know that you can pass on card fees or write them off
Probably one of the main reasons small businesses are reluctant to accept credit cards is because they’re worried about the fees. Typically, credit card processors charge a minimum fee per transaction plus an additional percentage of the entire purchase.
Passing on card fees to customers
One way to address these fees is to pass them to your customers. If you’re an Invoice2go subscriber, you can do this easily by turning on fee pass-through. Just be sure to check your local laws to ensure your state doesn’t prohibit credit card surcharges. Alternatively, you could factor card fees into your pricing strategy to ensure those charges don’t dig into your bottom line.
Writing off card fees
It’s important to note that business credit card processing fees are tax-deductible. This means that although you have to pay the fee at the moment of the transaction, you can later deduct it from your tax bill. Using this strategy, you can ensure accepting card payments works as a win for both you and your customers.
Build a strong foundation
Accepting credit card payments can make you more resilient and can even give you an edge over the competition. And with the right technology and strategy, you can build your business on a stronger foundation for years to come. CTA
Ready to start accepting card payments?