5 reasons why businesses are better off with card machinesSmall Business Advice 9 October 2014
Find out how a card machine can boost your business
It’s no secret that you can’t run a successful small business today without accepting credit and debit cards. Plastic payments have been around for decades now and have always been a quick and convenient way for people to pay when they’re out of cash.
But accepting cards isn’t just about giving customers another way to pay; they play an important role in how people perceive your business and how they spend with you.
The list below details just some of the ways in which your business benefits from cards and is essential reading for any small business owner.
1. Attract cash-strapped customers
Recent research has shown that 20% of customers avoid stores that don’t have a card payment machine. With high street cash points now charging as much as £2.50 per withdrawal, shoppers are far more likely to rely on their card if they get caught short on cash.
If you’re ready to take cards, people are more likely to come in-store and start spending and they’ll remember next time they’re out of cash and head to your store first.
2. Make a profit by preference
A study of consumer spending recently found that 70% of people prefer to pay by card even if they’ve got cash in their pocket. Now this isn’t the same the world over, in fact Polish people prefer to pay cash, but in the UK it seems that consumers are at their happiest when they get to go plastic.
Don’t make payment a barrier to your business; give customers what they want and be careful not to put people off with a hefty charge for using your card machine. Customers will fall for this once, but they won’t be stung by this again, so think about the long-term.
3. Boost impulse buying
When a customer is limited by the cash in their pocket, they’re limited in what they can spend. When you install a card machine you’ll be letting customers know they can spend that little bit extra if they seeing something they just have to buy.
Sending them off to a nearby cash point is only likely to give them an opportunity to change their mind. Give your customers the option to purchase by card and they’ll spend more money, more often.
4. Cut down on queuing time
Thanks to contactless card technology your customers can now pay for goods totalling £20 just by placing their card close to or just on the card machine. With shoppers now able to make these rapid touch and go payments you can serve more people, in a shorter time.
Contactless payments are particularly good for shops and retailers where the average spend is £20 or under. There are now more than 40 million contactless cards in use and the UK and that figure is rising steadily as more card providers roll out the technology.
5. Improve your credibility
It’s important to acknowledge, too, that embracing card machine payments brings other, less tangible benefits to your business operation. For example, studies show that displaying credit and debit card logos in-store can help to build a sense of trust between the consumer and the business they are dealing with.
If you are a small business just starting out, then building a reliable reputation from the word go is key to your business surviving, and so showing that you are ready to take cards is a surefire sign that your customers can trust in your services.