These days, customers have come to expect that credit cards will be a payment option. With ATM fees continuing to rise, some consumers may even exclusively choose to take their purchasing power to businesses that accept credit cards.

But accepting credit cards costs merchants money and adds another layer of paperwork and complexity to the business process. Do the benefits of accepting credit cards outweigh the cost?

Benefits of Accepting Credit Cards

Customer Expectations and Convenience
Simply put, if you are a retail business, allowing payment by credit card is almost a necessity. In fact, if you look at trends over the past ten years, you can see how payments by credit and debit cards have continued to increase while the use of cash and checks has decreased.

Source: From Visa Payment Panel Study – 2006 Payment Trends Summary

Increased Sales by Existing Customers
Not only are consumers using cards and electronic methods of payment more, but the average credit card sale is greater than when the buyer uses cash. The additional sales dollars easily make up for the cost of accepting credit cards.

Here’s what consumers typically spent in franchise businesses last year, by type of payment.

Source: Cash or Credit?: Tracking the Changes in How Consumers Pay.

Larger Pool of Potential Customers
Without a credit card option, consumers need cash in hand or in the bank to make a purchase. Merchants who accept credit cards benefit from the ability to sell goods to buyers who may not have funds readily available. In addition, the merchant doesn’t have to extend credit to the consumer to complete the sale. The resulting windfall to businesses over the years has been tremendous.

Business Building Opportunity with Loyalty Cards and Gift Cards
Loyalty and gift cards help you attract new customers and retain existing ones. The ability to process credit cards provides you with the option of offering and honoring loyalty and gift cards quickly and easily.

Navigating credit card options can seem tricky and intimidating at first. But if you educate yourself on credit card processing and weigh the pros and cons, you will likely find that there is a processing option that will fit your needs and budget.

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