Top 4 Reasons Why You Should Not Accept Credit Cards Online and Top 4 Reasons You Should
The top 4 reasons that it is a good idea not to accept online credit card payments:
1- Risk for Identity Theft – When people put their vital and personal information out there via online websites the odds of their identity being stolen increase. This is especially true when they provide credit card information to websites in the course of a purchase. The potential for them to have that credit card information stolen increases. It could be a bad thing if your company is tied in any way to identity theft or credit card fraud.
2- Charge Backs – Charge backs can be a good thing for consumers, but it can also be abused, leaving your company paying the price. Deceptive consumers have learned that they can enjoy a purchase and then not actually pay for it, because they file a claim with the credit card company that they did not make the charge. The burden of proof, surprisingly, falls on you, the business owner to proof the purchase, which often is not worth the time, effort, and potential legal fees.
3- Moral Issues with Credit Cards – Some business owners are morally opposed to credit cards because they know that many people use them unwisely and spend well beyond their means to repay. This knowledge can cause a business owner who feels this way some great concern when they accept credit card payments.
4- Fees Associated with Credit Card Processing – A lot of people who have never been a business owner do not realize that there are credit card processing fees taken out of the payment before the money is turned into the account of the business owner. This is the main reason that you see incentives made for those who pay with cash.
Top 4 Reasons You Should Accept Online Credit Card Payments:
1- Increased Sales – There is no denying that people buy more when they use a credit card as the method of payment. When a business does not accept credit cards, they are hurting their business by reducing the amount of transactions that will take place in any given day. This is because many times people do not have any other form of payment with them at the time and the purchase may not be important enough to them for them to make the effort to come back later.
2- Security for Customers – Many consumers are already a bit nervous about purchasing things on the internet. They do not walk out of a store with the product that they just purchased. When they use a credit card, they will fill more secure because they know that they have some recourse to get their money back if they never receive the product that they paid for.
3- More Accessible to More People – By accepting credit cards, you reach far more consumers than you might otherwise. The reason this is the case is because credit cards allow people to purchase things beyond their means, because it breaks it up into installment payments that they can afford.
4- Predominant Payment Method of Today’s Society – Credit cards are the payment method of choice for most Americans. If a business refuses to accept that form of payment, then quite simply they will lose out on a lot of business.