Understanding consumer spending habits is a great way to also understand the value that can be provided by opening a merchant account. Consumers like credit cards for many, many reasons. They also like businesses that accept cards. But unless you understand the reasons why, it can be difficult to convince yourself to take that final step and open a merchant account.

The following list can help you understand consumer spending behavior, and just why opening a merchant account is a good idea for your business.

• Improve the way your business is perceived by customers. Consumer studies indicate that customers actually perceive businesses that accept cards as being more responsible, more trustworthy, and having a higher degree of legitimacy than businesses that operate on a cash-only basis. These same studies revealed that even new businesses are seen as being more established and trustworthy than older businesses, simply by displaying the logos or signs of the credit cards they accept.
• Increase impulse sales. According to recent research, credit card users are much more likely to make impulse purchases when they use cards than they are when they use cash. Moreover, those purchases tend to be made more frequently, and are of higher costs, than impulse purchases made by customers who rely solely on cash or check.
• Increase sales of more expensive items. Because they allow consumers to pay for purchases in small amounts over time, customer who use cards are much more likely to purchase expensive items than are cash buyers. Also, many cards today offer extended warranty policies on electronics and other items, making them a much preferred payment method for customers who purchase these items.
• Increase the amounts of individual sales. Credit card users spend significantly more money per shopping trip than do those who use cash. In addition, credit card shoppers shop more frequently and are more likely to be repeat shoppers, remaining more loyal to the stores they patronize than cash shoppers.
• Customers also appreciate the flexibility afforded by credit cards. As noted, credit cards allow customers to pay for purchases in a payment plan that’s right for them. With credit cards, customers can afford even expensive items that they would not be able to purchase using only cash.
• Stay competitive, especially on the Internet. Today, more and more businesses are turning to merchant accounts and the services they provide to increase profits and grow their customer bases. As a result, these companies are pulling ahead of the competition, leaving businesses that accept only cash far behind.
• What’s more, if you plan to do business on the Internet, either completely or in part, it’s crucial that your business accept cards. Studies show more than 90 percent of the customers who make purchases over the Internet use card to do so. If you do not accept cards for payment, you will effectively eliminate a huge pool of potential customers.
• Simplify your bookkeeping and improve your cash flow. Merchant accounts ensure all of the proceeds from your credit card sales are deposited into your business account each day, unlike checks which can take more than a week to clear. Merchant accounts provide a single, consolidated source for reporting on these funds, as well. Checks also offer no security; a check accepted days ago may be returned for insufficient funds, leaving you without the sales proceeds. Credit cards, on the other hand, are approved before the sale is finalized and before goods are turned over

Now hopefully you understand a little more about how consumers view credit cards and why opening a merchant account is not only a great idea, but a way to add instant value and credibility to your business.

The key now is to setup a merchant account with the lowest rates and fees possible in order to save your business money. Tailored Transactions specializes in customizing their payment processing solutions according to your business and industry type. This will allow your business to take advantage of the many preferred pricing programs by Visa and MC, as well as ensure that your merchant account is setup properly so that your rates remain low regardless of the card types you accept. Information is power, informing yourself is the key to savings!

Please take a moment and visit their website at www.tailoredtransactions.com or your can call them toll free at 888-669-1686. Their team of Merchant Business Specialists will answer any questions that you may have and work with you to create a tailored-made solution for your business.

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Posted in Credit Card Processing Merchant Account Merchant Services Merchant Services Provider by tailoredtrans 2 Comments