The Pros and Cons of Accepting Credit Cards at Your Business
Most consumers today prefer making payments with a credit card, especially if they shop online. But there are some pros and cons associated with accepting credit card payments at your business, and you should go over these in order to make the best decision for your company. So if you haven’t begun accepting credit cards yet, continue reading to learn more about the benefits and drawbacks of incorporating this form of payment.
Pro: Attract and Retain More Customers
Because so many people prefer paying quickly and easily with a credit card (like the top 0 percent APR credit cards), especially when they’re planning on spending a lot of money, if you aren’t accepting credit cards at your business, you’re missing out on a large group of potential customers. Remember, credit cards offer consumers a lot of benefits, including rewards programs, the ability to pay large sums slowly over time, and the ability to shop online with confidence.
Con: There are Expenses Involved
If you’re planning on accepting credit card payments, be aware that there are expenses involved. These include fees for merchant services, processing, interchange, and monthly statements. Plus, you might also have to pay a monthly charge minimum, and you’ll need to pay PCI Compliance rates. If these expenses are too much for your already struggling business, it may be best to stick with accepting payments via cash and check instead.
Pro: There are Options for Those Considered High Risk
Even if your business would be considered a high risk account, there are still options if you want to start accepting credit cards. With so many high risk merchant account providers out there, you can find the one that will be able to help you.
Con: A Risk of Chargeback
A chargeback occurs when customers who paid for a product or a service using their credit card disputes the charge with their credit card provider. This can occur many months after the transaction was even put through. If you want to keep the customer happy and issue them a credit, you’ll likely have to pay the same fees that you had to pay when you accepted the payment, even though you’re giving money back this time.
Pro: You Can Sell Internationally More Easily
If you want to expand your business into the international market by selling online to consumers around the world, accepting payments via credit card will make it easy to do so because the credit card company will take care of currency conversions.
Con: Fraud Risk
Even though there are security measures and laws in place to protect sensitive customer information, there’s still a higher risk of fraud when it comes to credit card payments. You’ll need to take steps to protect your customers’ personal data and privacy if you want to accept credit cards. Also, in the event that someone uses a stolen credit card to pay you, you may need to reimburse the bank for the transaction because some issuers and banks hold merchants responsible.
With so many pros and cons to consider when it comes to accepting credit card payments at your business, you’ll really need to think about it before arriving at your final decision.