Most companies that try to curb the amount they spend on merchant services tend to opt for only two non-cash payment options: VISA and MasterCard credit cards. On first glance, this seems like an excellent way to make sure that you give people more options while cutting costs. However, as smart as this may appear, it’s not always the best option. Here are five reasons why merchants should go beyond VISA and MasterCard, according to experts.
- Discover cards account for around 7 percent of all market shares. The truth is that MasterCard and VISA may have a large share of the credit card marketplace. People spent over $121 billion using their Discover cards alone last year. By missing out on Discover cards, you’re missing out on that purchasing power, too.
- American Express cards also topped the list in terms of spending. If you’re only allowing VISA and MasterCard purchases, you’re missing out on the most spending-ready demographic out there. Last year, American Express users charged $674 billion on their cards – outdoing every other major credit card issuer in the nation by a landslide.
- If you have an online store, you should also expect around 12% of your purchases to be paid with PayPal. That number has decreased, but it’s still a very sizeable portion of online payments. If you have e-commerce storefronts, you will need to accept PayPal.
- 7% of all transactions are also done via prepaid cards. In many cities, prepaid cards and gift cards make up a much higher percentage of transactions. Moreover, studies show that people who use prepaid cards tend to spend more than those who use cash or credit. As a result, not having prepaid cards as a payment option could cause you to lose on major sales.
- Studies also have shown that the more payment options a store has, the better their profits tend to be. More payment options means that your customers will feel happier, which in turn means that you get more money at the end of the day.
If you are only accepting VISA and MasterCards at your company, you are making a mistake. To ensure your customers are getting all the options they need, give CPS a call. Our services will help you get the profits you want.