Credit Cards – The Currency of the Future is Now : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

Credit Cards – The Currency of the Future is Now

September 27, 2013

Credit Cards – The Currency of the Future is Now

London, England (RPRN) 09/27/13 — There are now more sales transactions completed using credit and debit cards than with cash. This holds true even if you exclude online transactions that are nearly 100% card transactions. Even in typical retail stores more sales are completed using a credit or debit card than by cash or check. The question of 30 years ago “Paper or Plastic” has now expanded to payments as well as the type of bag being used and the answer is still the same the majority of the time – plastic. The next question to be asked by business is how to keep the costs of these transactions as low as possible and use the trend to increase sales?

 

Lowering the Merchant Cost for Credit Card Transactions

With over 60% of sales in general being paid with credit and debit cards and in some niches well over 90%, the fees charged to the merchant for accepting cards now are a major expense that must be calculated into margins and kept as low as possible. All card transactions (with the sometimes exception of an actual branded store card) incur a fee. Debit cards have a lower fee than credit cards and some cards have lower fees than others but ultimately the merchant is paying a fee to allow the customer the convenience of using a card. Steps can be taken to influence a customer’s decision in which card to use to minimize these fees.

The most common cost cutting steps seen are in simple marketing tools. For large retailers with their own store card it is common to offer a small discount for use of the store card. It is typically a requirement of all cashiers to ask “Will you be putting this on your xyz card today?” prior to ringing up the transaction to urge the customer in that direction. For smaller retailers and online stores the use of a sign or graphic saying “Visa is the preferred payment method” (or whatever card) or simply having a large picture of the preferred card (which will always be the card with the lowest transaction fee or special retailer program offered) and smaller pictures of the other accepted cards.

A merchant can also reduce fees by careful shopping for credit card processing companies. The larger the business volume, the greater the potential savings by shopping competitive agencies. In addition to finding the most competitive processor, make certain that you look at the programs offered at Cardfellow on a regular basis so that the buying habits of your customer base are reflected in the pricing. If you have many small receipts and transactions, a low base per transaction price is worth more than a couple tenths off the percentage as an example.

 

Using Credit Cards to Reduce Labor and Increase Sales

To increase sales by acceptance of credit cards is easy. Simply accepting credit cards increases sales by over 20% on average. It allows for purchases that exceed the amount of cash a customer has on hand as well as caters to the growing percentage of people that no longer carry significant amounts (if any) cash. While this is simply common sense in a brick and mortar retail store, now it is possible for even vendors at places like a farmers market to accept credit cards remotely with a small device that attaches to their smartphone.

Remote card processing such as the one offered by CardCutters also works well for in home sales or at the signing of contracts with a deposit. The ability to accept payment on the spot seals the purchase process in the mind of the consumer and allows the person to feel it is done and no longer need be worried over. This reduces the percentage of people that change their mind from a presentation to completion of contracts.

Many retail stores and in particular restaurants and bars are able to significantly reduce labor costs by allowing wait staff to process credit card payments at the table or at the customer’s location. This reduces time spent walking back and forth to retrieve cards and doing administrative payment duties instead of providing service to customers. As well as higher customer satisfaction, number of wait staff can be reduced using this method. 

Media Contact Name: Amellia Hope
Media E-mail:
Main image credits: RushPRNews
About the author:

Digital News are business news afficianados, dedicated to bringing you the 'buzz' in the digital world. From business and eco to travel and sport, Digital News are in the know. 

Click here to see all news from this author/company

Filed Under: BANKING AND FINANCIAL NEWS, Technology, PRESS RELEASE, United Kingdom

RUSH PR NEWS newswire and press release services at rushprnews.com / Anne Howard annehowardpublicist.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

Zikto taking award-winning Arki to Startup Nations Summit

Seoul, Korea 11/22/14 · Zikto taking award-winning Arki to Startup Nations Summit The...

The End of Transparency? Don't be a fraud target

Carrollton, TX 11/18/14 · - Over the years, progressive and productive societies...

Ultraseal international in finals of Midlands Business Awards 2015

Coventry, UK 11/14/14 · Ultraseal International, which exports to the automotive supply...

Arki: Hot New Wearable Tech Setting a Cracking Pace on Kickstarter

San Francisco, CA 11/14/14 · Update for November 21: 412 Backers $90,034 pledged...

UpWest Labs Unveils Details of Its Eighth Batch of Startups, Ranging From Genetics to 3D Design

Palo Alto, California 11/11/14 · Accelerator continues to support innovative entrepreneurs with its...

Modern Casting Impregnation helps automakers to avoid warranty claims on engines

Novi, MI 11/11/14 · Automakers can save money and avoid costly warranty...

The Evolution of Walking: Wearable Tech steps up to a new level

San Francisco, CA 11/11/14 · Arki: Finally Wearable Meets Fashion – Wearable technology is one of 2014’s...

GeneSegues Awarded $1 Million Phase II NIH/NCI Research Contract for Nanoencapsulated RNAi Cancer Therapeutic

MINNEAPOLIS, MN 11/10/14 · Highly Competitive NIH Program Validates Potential of GS-10...

More Than 400 .Onion Addresses Targeted as Part of Global Enforcement Action on Tor Network

WASHINGTON 11/07/14 · More Than 400 .Onion Addresses, Including Dozens of...

Learn about Wine in Your Pjs - A New Kind of Wine Class

SAUSALITO, CA. 11/04/14 · The Wine Key announced today it's first virtual...

XCEL Professional Services Has Made a Huge Change to Move Our Company Forward

Calgary, AB 11/04/14 · Introducing Rob Hay: The New President of XCEL...

Furries and Despair – two-man show at Canessa Gallery, November 7 Wild is beautiful

San Francisco, CA 11/03/14 · The show  "Furries and Despair" at Canessa Gallery...

Ristech Completes Acquisition of Kirtas Technologies Inc.

Victor, NY. 11/03/14 · With the acquisition of Kirtas Technology, Ristech increases...

Signed, sealed, delivered: Email best practices

San Francisco, CA 10/31/14 · Email is the original Web app. Born in...