4 Benefits Customers Receive with Credit Card Payment Processing

4 Benefits Customers Receive with Credit Card Payment Processing

In terms of payment processing, credit cards are a generally new innovation. However, regardless of their recent introduction, in the 1940s, the benefits of using credit cards have surpassed cash. Credit cards are now a much better form of payment and payment processing than cash ever was.

When using cards, businesses and customers benefit from increased card protections, ease of use, and service from the card companies, allowing transactions to occur quicker and smoother. Here are the top four reasons why credit cards are better than cash for customers.

Easier to Return Items

Sometimes, items break or need replacement. If this is not the customer’s fault, it is generally accepted by business owners that they should receive a refund. While some items cannot be returned, like opened rare bottles of wine or undergarments, most can.

Difficulty arises when customers either lose their receipt or it is not legible due to the amount of time that has passed since their purchase. With credit card payment processing, this concern is not an issue.

Credit card companies keep transaction records for clients, and specific purchases can be tracked and printed out years later. When customers pay with credit, they also provide your business with a transaction record as well, since you are processing the payment with the card company.

Besides helping your customers, you are also deterring scammers from faking return claims. As a no-cash business, it will be harder for them to verify they purchased items at your store without a receipt.

Foreign Currency Issues No Longer Matter

As a business owner, you must have experienced this at least once every few months. Foreign tourists come into your shop but do not have the correct currency or amount to purchase desired items.

With credit card processing however, the card company will convert currency automatically during a purchase. As long as the customer has sent their company a travel advisory prior to leaving their region of residence, they should not have any problems buying items abroad.

Switching to credit card payment processing will allow you to offer greater convenience to out-of-town visitors and tourists, increasing sales revenue and customer base as word of your business will travel internationally via word-of-mouth.

More Secure than Loose Cash and Coins

It has happened to all of us. Notes get wet and become useless, or coins fall out of our pockets. With credit cards, all customers have to do is take the card from their wallet or purse and put it back. As long as the magnetic strip is safe, credit cards can withstand much abuse.

Physically, it is a more secure form of payment than cash. PINs deter theft, and most business ask for identification cards to accompany credit cards during purchase. With cash, once it is stolen it is gone and is useable by anyone.

Furthermore, if a customer unknowingly hands you a counterfeit bill, even if they received it from their bank, you cannot legally accept it. This is frustrating to customers, who may believe you are treating them unfairly.

With credit cards, the card company has to approve transactions before they are approved. It is much harder to fake a payment with cards than with cash, protecting both your business and the customer’s best interests.

Great Customer Service If a Payment Issue Arises

If payment issues arise when processing cash, there is not a lot anyone can do. Banks will not accept fake bills, and businesses will not accept torn, foreign, or counterfeit cash. With credit card processing, if an issue arises customers can simply telephone their card company for help.

Customer service for credit card companies generally have both a domestic and international toll-free telephone line for customers’ convenience. If a travel notice needs to be placed, the credit limit needs to be raised, or if the card is expired or non-functional, a quick call to customer service can be very beneficial.

As a business owner, this is also very convenient and beneficial to you. Customers can quickly go to their bank or a sister bank, correct the issue, and return to pay for their purchases. If payment issues were to arise when a customer paid cash, you might lose the sale. Now, with credit card payment processing you can recover it, and increase revenue.

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4 Trends to Watch out for in the Payment Processing Industry

4 Trends to Watch out for in the Payment Processing Industry

The payment processing industry is constantly evolving. In the 2000s, PayPal came out and shocked the credit industry, proving that digital payments could be made both safely and easily. The credit industry was forced to adapt and accept easy online payments, all of which have massively benefited consumers and led to the development of user-friendly payment processing systems that are designed with the consumer in mind. Here are four trends to watch out for in the payment processing industry.

  1. NFC Tap Integration

Whether you buy into smart watch technology or mobile phone integration, modern merchant solutions will incorporate tap technology into their existing framework. Consumers want to be able to pay as quickly as possible with maximum safety in mind. A study by Accenture found that 41% of mobile users were aware of mobile payments and 16% of those users actively used the technology. However, 33% of those who do not use mobile payments suggested that they would adopt the technology if it incorporated better rewards. In addition, consumers were most interested in mobile payments at gas stations, person-to-person payments for Craigslist and other meetings, paying for public transit, and for paying their utilities. Businesses that want to stay ahead of the game will need to update their payment systems to newer devices that are capable of capitalizing with tap technology.

  1. Personalized Rewards

Credit card companies and businesses have caught on to consumers and their desire to be rewarded for spending their money. The current selection of popular credit cards offer everything from in-store rewards to cashback. Data collected by American Express suggested that 57% of Americans are members of a credit card reward’s program. However, a simple reward’s program isn’t enough anymore. Consumers are interested in unique rewards that are tailored to their needs. Cashback may be one of the most popular options, but personalization is quickly taking over and is something that all companies will need to consider if they want to emerge victorious in the competitive payment processing industry.

  1. All-In-One Payment and Membership Cards

Building upon our previous point about the importance of personalized reward’s programs, businesses and payment systems that can incorporate a form of payment with a membership program will outrank businesses that require a consumer to juggle multiple cards when making purchases. As a consumer, tapping one card, earning points, and redeeming them all in one go is far more attractive than pulling out a reward’s card, tapping it, and then finalizing the transaction with your debit card. While the extra steps may seem minor, consumers value their time and it is important that a business learn how to complete a transaction and reward their consumers as quickly as possible.

  1. Tokenization and The Future of Payment Processing

Payment processing systems are undergoing a fundamental change. As payments become easier to make, security will become the most important topic for the industry. The current tap integration and ease of access has led to the development of systems to combat payment fraud. Consumers are enjoying the benefits of this new technology without compromising their financial safety. Much of this is due to tokenization, a process which masks your financial data and completes transactions through an encrypted process.

If you’re interested in a Payment Processing provider that will work hard to meet your business goals, don’t hesitate to contact The Merchant Solutions today!

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