Whether you are a small business owner, a freelancer or an independent contractor, you should consider accepting credit cards from your clients. This form of payment is arguably more prominent and more useful than any other single type of payment. Here are the top reasons your business should accept plastic:
Your Clients Use Credit Cards
Regardless of the type of individuals you serve, the chances are high that they use credit cards. As of 2016, 89% of Canadians have at least one credit card, and by the end of 2015, spending on credit and debit cards increased by 7.2% and 2.7% respectively. At the same type, the popularity of cheques and cash is waning.
Anyone Can Accept Credit Cards
Numerous apps and services make it easy for anyone, regardless of the size of their business, to accept credit cards. Depending on your volume of monthly transactions and the credit card processor you select, you can opt to pay a small monthly fee, a percentage of each sale or a combination of these billing options. Best of all, you don’t need any special equipment.
Relatively new companies such as Square can provide you with a card reader that you connect to your phone, but even traditional banks are offering similar services. For example, even Chase Canada can help you set up credit card payments on your website.
The Most Popular Online Payment
If you want to accept payments online, you can use a services such as virtual currency like Bitcoin, however, credit cards are still the easiest, most popular option. In 2015, Canadians spent over $22 billion online, and to tap into those funds, your business needs to be online accepting plastic.
Credit Invoices to Streamline Billing and Accounting
Rather than just accepting credit cards, you can make them an integral part of your billing process. Services such as QuickBooks Payments allow you to set up invoices and email them to your clients. To pay the invoice using credit or ACH transfers, your clients simply need to hit a link on their smartphones, tablets or laptops, and then, the program updates your accounting records accordingly. This invoicing system streamlines accounting, reduces errors and speeds up the billing process, especially compared to waiting for a paper cheque.
Diversified Payment Options to Stay Competitive
Accepting credit cards can make payments easier for you and your clients, but taking this type of payment can also help you to remain competitive in your industry. If most of the other professionals in your niche accept credit cards, you are at a disadvantage if you don’t. Unfortunately, if all other factors are equal, clients may choose your competitors if their payment process is easier than yours. Luckily, as indicated above, it’s fairly simple to accept credit cards in person, on your website or through credit invoices.