Using Card Terminals and its Advantages

Card terminals are terminals that allow you to do transaction with a credit card. To put more simply, it is a credit card processing machine, which is a type of POS or Point of sale terminal. Most customers have switched from using cash these days. Unless the power is out, money is a relic form the past.

Most banks encourage the customers to use credit cards and there are many offers when a customer uses credit cards. Again, on the merchant’s end, there are a lot of benefits that are encountered once you add card accepting capabilities to your business. Also, it creates a good impression about your business.

The advantages are discussed in the following sections.

Increased sales

It is seen in research that once your business has card terminals, you can increase your revenue by almost twenty three percent. The more you increase your scope of payment methods, the more readily you can have your products available to the customers.

The main advantage of a credit card is that is beneficial on both the customer and the merchant’s end. It gives the customer to make the purchase even when he or she might not have raw cash in hand. This is a convenient payment method that is much appreciated.

Improved cash flow

When you get card terminals, you are switching over to electronic payment method. Electronic transactions speed up the payment process. In case of cheques, you have to wait for a week to almost three months to get the cheque cleared. But debit card transactions are deposited into your account in no time. This means faster payment cycles. Therefore you will have decreased bill overhead and increased cash flow.

This is a very important benefit for any business.

Increased average ticket size

More the customers get different payment methods, the more your average sales will be boosted. In fact, a customer spends almost twenty percent more while paying with a credit card, instead of paying with cash or cheque.

It is seen that consumers feel a greater financial freedom when they are using a credit card.

Increased productivity

With card terminals, the transaction takes place automatically. This means that the funds are deposited in your bank account automatically. You do not have to worry about being a payment collection agent. This is much less time consuming than payment in cash or cheque. It allows you to focus on other aspects and let your bank handle the cash for you.

Lower costs

With the ability to accept credit cards, operational costs go down. The overhead costs are decreased with the elimination of the need to send bills and manage accounts. For a business that has just started, it is much more economical to accept credit cards than to accept cheques. Also, since the process it totally automated, it helps in control shrinkage.

Improved customer service and business image

The acceptance of credit cards helps to improve the customer service. They always incline towards the services that provide speed and flexibility. This leads to better customer loyalty.

Therefore introduction of card terminals makes good business sense. You can easily gain valuable credibility from the customers.