Accepting credit cards can mean more money in your pocket and more business overall, not to mention way fewer payment headaches.
Should I accept the cards? Should I accept American Express? But the fees are so much!
I have this same discussion over and over with business owners. I know, I know… ACH is so much cheaper.
Here the deal...
It’s not about you. It’s about your customers. Your job is to make it as easy and painless as possible to pay you. The more you can eliminate payment friction for them, the better off you’ll be. You’ll get paid faster and with less effort on your part, the easier you make it for them.
So, yes you should accept credit cards. All of them. All the time.
Make more money
If customer satisfaction and ease aren't enough of a justification for you, how about making more money?
According to Dun & Bradstreet, customers spend 12 to 18% more when using credit cards instead of cash. Intuit estimates that every single business that doesn't accept credit cards misses out on about $7,000 in sales annually.
Accepting credit cards ultimately means more money in your pocket. Did you know that 69% of millennials won't shop at businesses that only accept cash?
Think about your own purchases. How annoyed are you when someone makes you fill out an ACH transfer form instead of just taking your freaking card? Or when you're trying to buy a coffee and you find out that the business only takes cash or, heaven forbid checks.
Credit cards make our transactional life easier. So, take advantage of that and let your customers use them.
Get paid faster
Accepting credit cards doesn't have to be complicated or hard, either. Businesses who simply connected their Xero account to a payment service like Stripe or Paypal got paid about 20 days faster.
So, if you're still not getting paid upfront for some reason (and if so, we need to talk), something as simple as a payment link in your invoice, with the ability to pay right then using a card, can get you paid faster.
You can still offer payment options
Accepting credit card payments doesn't mean that you have to make that the only option for payment. If you love ACH bank transfers, go ahead and offer that as an option. If your client goes that direction, great! You save some money on credit card fees.
But, don’t offer a discount for the ACH - you’re still paying the fees, with your time setting it up. It takes a lot more time an effort to set up the ACH transfer than you think unless you're using something like Practice Ignition that gets all the paperwork completed automatically as part of the onboarding process.
However, some business owners don’t use credit cards or prefer to pay via ACH/check, so it’s not bad to offer it as an option. Generally, a credit card is the easiest way to both pay and to receive payment, so make that the default, and integrate it into your client onboarding process, so it happens automatically.
It's your cost of doing business
Don’t be the dick that passes the credit card fee onto your client. It’s not their responsibility to pay you to operate your business. Build the fee into your pricing and suck it up. It's YOUR cost of doing business, not theirs. Your client expects you to build your costs of doing business into the price, but it’s really going to piss them off when you blatantly break out that fee and make them pay it.
How do YOU feel when you have to pay a credit card fee as a separate line item? Annoyed, right? That's not how you want your clients to feel.
Take advantage of major gains
Whatever your moral feelings are about credit card use and whether or not you use them yourself, there are major financial gains for your business to be had by offering the ability to pay with a credit card.
Take advantage of them, suck up all the benefits and make your life easier because you don't have to chase your clients for payments or ACH authorization forms anymore.