Should you accept credit card payments?
Posted on June 17, 2021 by Brad Krueger, One of Thousands of Business Coaches on Noomii.
Let me share with you two of the many reasons why I decided to accept credit card payments in my business model.
Do you take credit card payments from your business clients?
Many B2B service providers don’t. And, with processing fees approaching 3% or more it’s easy to understand why.
However, this hasn’t stopped the direct-to-consumer retail and service sectors from accepting them.
Are you sure they don’t make sense for your business-to-business services too?
Let me share with you two of the many reasons why I decided to accept credit card payments in my business model.
The first reason was to reduce buyer procrastination.
That’s because for many small business owners with tight cash flows, spending money can be stressful.
However, paying for a purchase with a credit card can reduce that stress based on the psychological theory of coupling.
According to an article in Psychology Today, coupling refers to how much pain we feel when we purchase something.
We feel more pain when we make a purchase with cash and less pain when we pay with other forms of payment like credit cards.
This is because the act of purchasing and the act of paying are separated by time (e.g., 30 days) when using a credit card. The purchase and payment are decoupled which is why people tend to spend more when they use credit cards.
A business owner is not immune to decoupling since the cost of their decision doesn’t hit their books for another month, which can reduce their stress and procrastination.
Assuming you are ethically selling a legitimate service that your clients really need and benefit from, this is a simple way of reducing some of the initial stress and procrastination associated with buying from you.
The second reason is because I want to encourage repeat business.
I still remember when one of my clients casually mentioned to me how much they loved the travel reward points they earned from paying me with their credit card.
It was immediate validation for why I accept credit card payments.
Besides the direct value of the services I offer, it doesn’t hurt to have a rewards program that encourages repeat business too!
Best of all, I didn’t have to do any work to reward them for doing business with me – they instantly have access to gifts that fit their unique desires.
That’s a win-win!
Obviously, credit card payments may not be the right fit for all situations or industries, but when clients are repeatedly paying you for a retainer, ongoing projects, or a subscription, those payment processing fees might payoff in more business. – Faster buying decision or repeat business.
I encourage you to give credit cards some thought. Do they reduce your clients’ stress of buying from you, reward their continued business, or otherwise streamline doing business with you?
Those darn payment processing costs might just be worth it.
Would you like to discuss your unique situation?
Request a free consultation today!
Don’t put it off, get something on the calendar today.
Let’s make success beyond luck a reality for your business.
Brad Krueger
Business success coach
