The main reason that some people take opportunities when they arise, and others do not, is that some people are ready.
They have their Business Plan ready and all they need to do is take advantage of the opportunities.
Where can you find the right Business Plan?
If your Business is based in the United States - click here
If your Business is based in the U.K. - click here
For a lot of people who are just starting to launch a small business venture, it may seem quite intimidating to start accepting credit cards as a means of payment from customers right away. After all, it takes a lot of hard work to have your company certified for merchant status from a number of banks to be able to accept credit payments.
Even so, what small business owners must take note is that setting up your company to accept credit cards can actually contribute many rewards that could lead to the growth of your business. Here are some of the reasons why accepting credit cards will greatly benefit your company.
Increase In Sales
With customers being able to pay through credit cards, you are actually increasing the probability, speed and size of customer purchases. This is mainly because accepting credit for payment basically does not turn away sales. And so, when your customers are in the mood to buy your products out of impulse, then they can readily make purchases even when they do not have cash in their pockets. In this way, you are doubling the chances for people to be able to buy your products by adding options for how they want to make their payments.
Contributes to the Convenience of the Customers
This also adds to the convenience of your customers. Take in mind that not all people may always carry cash with them, especially to those who are traveling. In fact, so many people today actuallymay find the use of plastic for shopping very handy and much easier. When customers are pleased with your company’s policies and feel comfortable with your services, you can surely rely that they would most likely buy from you more frequently.
Improves Cash Flow & Guarantees Payment
A business owner can also rely on better cash flow upon accepting credit payments because there will surely be money coming in to the company. Unlike other means of transacting cash such as checks, these credit cards have fewer risks and are more reliable since payment transactions do not depend on whether your customer has sufficient funds in his or her account. In addition, this also guarantees you that you will surely be paid at least within a few days. This way, you as the business owner can also give just compensations to your employees and make timely payments for all your dues.
Gives the Company an Established Appeal
Doing business with credit cards can also give your company an appeal of professionalism to the customers as well as to other firms that you may want to partner with. Somehow the recognized way of transacting funds through credit cards and banking adds to your business’ legitimacy even if you are only operating a small business, as it gives a certain impression of trust to the public. Even through reputation, your small business can already appear bigger than it really is and this can largely contribute to drawing the public to your company.
Credit cards can certainly play a very vital role to the progress of your business. Through helping your company increase its sales, provide customer convenience, guarantee payment, increase cash flow and even give an established appeal, accepting credit cards may just be one of your best moves to improve your company’s performance.
In conclusion, no matter how small your business may be at the moment, accepting credit cards from your customers as a regular part of your services will surely help your company grow.
10 Things Credit Card Companies Don’t Want You to Know
Credit cards might seem ubiquitous in today’s culture, but there are plenty of ways to build credit without a credit card. That’s not to say some people can’t benefit from credit cards, but both cardholders and non-cardholders should be aware of the scariest facts about credit card issuers. Banks, retailers, and credit card companies wouldn’t be quick to volunteer this information, but it’s important for consumers to know more about this mysterious, multi-billion dollar industry that holds so much power in Washington. Despite increased regulations put in place by the Card Act, credit card companies are still doing plenty of shady things you should know about. Here are some of the many cases in which the credit card industry would prefer you were ignorant.
- There is no federal law that sets a maximum APR. While your credit card may have a maximum interest rate stated in its “terms and conditions,” there is no legal cap. Many states have usury laws that regulate interest rates on all loans, but they only apply to banks based in that state. That’s why the major credit card companies are incorporated in Delaware or North Dakota, where there are no usury laws. The average interest rate is 14.9%, but penalty interest rates typically hover around 30%, and one subprime credit card issuer staunchly defends its 79.9% APR credit card.
- Fixed interest rates are never really fixed. Even if you always pay on time, the “fixed interest rate” on your credit card can be raised basically any time the credit card company feels like it, according to Forbes. Issuers just have to give the customer 15 days notice of the rate change. Always read any correspondence from the credit card company to avoid a nasty surprise.
- If you are late on one card payment, the APR on all your credit cards could be raised credit card. After just one late payment, you could end up with a penalty interest rate across all of your credit cards, even if you have always paid the other card balances on time. Monitor all of your accounts to ensure you know your APR for each card, and always make payments on time from this point forward. You will likely be stuck with the higher APR for a while, but according to the CARD Act, credit card issuers must reconsider a cardholder’s penalty interest rates after six months.
- Your APR can be raised if you are late on any bill, not just your credit card bill. Many credit card agreements now include a clause saying the company can raise your APR if you are late on any bill, not just a credit card bill. The credit card company monitors your credit report on a regular basis to look for any change that could lower your credit score and allow the company to raise your interest rate. This is called “universal default” pricing, and it can be triggered by several activities including securing a new mortgage or car loan or being late (even once) on a credit card, mortgage, utility, or car payment.
- Your rewards program can change terms at any time. One way credit card companies attract new cardholders is with rewards programs, but they can change the terms of these programs at any time. Sometimes the number of points or miles needed to redeem benefits will increase. Cash back cards with no annual fee can be a better deal, but make sure there isn’t an annual charge that kicks in after the first year. The fine print that comes with these rewards cards is often confusing, which has led the Consumer Financial Protection Bureau (CFPB) to investigate these programs to ensure they use clear disclosures.
- It’s a myth that paying off your balance on time or early harms your credit. This is a popular myth, but in reality, maintaining a balance on your card absolutely will not improve your credit score, and it could actually hurt your credit if the balance you are carrying is a large enough portion of your credit limit. Paying on time or early should be your first priority to avoid late payments, interest payments, and credit damage. Pay off your transactions on the same day or at the end of every week so you will get into the habit of considering how much money you have in the bank before you swipe.
- “Revolvers” keep credit card companies in business. Credit card companies call cardholders who carry a balance every month “revolvers,” and these customers are a major source of profit because they are constantly paying interest. “Transactors,” on the other hand, are customers who pay their credit card bills in full every month, avoiding interest charges. These customers have also been called “deadbeats,” since they offer little benefit to the credit card company. In many cases, it’s the revolvers or subprime customers that banks will target because they generate significant returns.
- Low minimum payments are for their benefit, not yours. In the past, a 5% minimum monthly payment for a credit card was typical, according to U.S. News and World Report, but today’s minimum payments are usually 2%. This might seem attractive to customers, but for revolvers, who account for more than 40% of American cardholders, it means it will take much longer to get out of debt if only paying the minimum each month. Credit card companies defend the low minimums, claiming this payment is meant only as a last resort, but these companies stand to collect a lot more interest payments from the many cardholders who consistently carry a balance.
- The credit card lobby worked to make it more difficult to declare bankruptcy. After spending more than $100 million lobbying for the bill over eight years, the credit card industry succeeded in pushing the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) through Congress. The law made it much more difficult to discharge credit card debt by declaring bankruptcy. Advocates of the legislation claimed it would reduce losses to creditors, who would then pass those savings on to borrowers in the form of lower interest rates. According to a report in the American Bankruptcy Law Journal, the actual result was increased costs for consumers and soaring profits for credit card companies.
- The credit card industry spends billions of dollars on marketing. Banks and other financial institutions spend approximately $17 billion per year on marketing, according to a CFPB study. About $5 billion per year is spent on awareness advertising, largely in the form of television ads for credit cards. Interestingly, much more ($12 billion) is spent on direct marketing, such as mail, email, and digital ads. The CFPB compared these spending figures to the amount of money spent on financial education in the U.S., which comes to roughly $670 million. In other words, banks spend $54 per person on advertising, while the money spent by banks, non-profits, and government bodies to support financial education comes to about $2 per person.
A Great Business did not just happen - It was planned that way.