Credit cards have become the preferred method of payment for the vast majority of B2C buyers and sellers, whether online or in-store. In B2B, credit cards are used heavily in purchasing departments for expense items, by employees for business expenses such as travel and entertainment, and even for much larger and more complex purchases.
Credit Card Processing
Have you ever stopped to wonder why credit cards are so popular, and why credit card processing is so important? Here are the most important reasons.
- Credit card payment is one of the most secure forms of payment — when processed properly. Funds are transmitted securely and settled quickly. There are no bad checks to worry about or cash to transfer from one location to another.
- Credit cards increase average ticket volume and overall sales volume. Credit cards are convenient and enable buyers to make purchases whether or not they have funds in, say, a checking or savings account. Numerous studies show credit cards increase purchasing, especially for impulse items. In addition, businesses that add credit card payment as an alternative to cash can rapidly expand sales.
- Credit cards are backed by bank card associations. Associations such as Visa, MasterCard and many others provide marketing support to merchants and give confidence to buyers, helping to attract customers and encouraging them to purchase. In addition, bank card associations handle the mechanics of settlement for their credit card transactions — the small fee they charge merchants is nothing compared to the cost merchants would incur processing payments on their own.
- Credit card payment improves cashflow. Because credit card payments are settled quickly, there are no time delays making physical cash deposits, no waiting for checks to clear, no 15-, 30- or 60-day wait to collect from customers with open accounts and no collection expense for late payments.
- Credit cards are “table stakes” for e-commerce. Most successful online businesses accept credit card payments. This, incidentally, is why our credit card processing services are so critically important to e-commerce businesses that are having difficulty establishing merchant accounts. We are able to help these companies maintain the ability to process credit card transactions and remain in operation.