If your business doesn't accept credit cards, there are at least One Trillion reasons why you should start today. Credit and debit card purchases exceeded $3 Trillion in 2006 alone. Three-Trillion-Dollars! And that figure will almost certainly keep rising as consumers continue ringing up record amounts of debt.
The average American cardholder has roughly four bank credit cards. Credit card purchase volume has been expanding about 15 percent per year for the last five years, or three times faster than the increase in overall U.S. purchases.
Debit card purchases are growing even faster, at more than 50 percent per year. In fact, according to Forrester Research, credit and debit cards are expected to account for 33 percent of all purchases by next year and for 63 percent by 2007.
According to one estimate, businesses forfeit up to 80 percent of consumer impulse buys if they don't accept credit cards.
To understand the growth in credit card use, it's important to grasp the reasons for their popularity. Consumers typically use cards because:
They don't want to carry cash
They don't have enough money available
They want to save cash in hand
They want to gain loyalty points (such as airline miles)
They are making a large purchase
They are looking to float money in a bank account
They are making a reimbursable purchase for a company
They want to take advantage of product protection
Even as credit card use grows in the real world, plastic already dominates the world of Internet (eCommerce) shopping. This breakdown of how people pay for online purchases demonstrates that credit cards are the key to eCommerce:
Credit card / eCheck online - 85%
Check mailed - 10%
Credit card via phone - 2%
Credit card via mail - 1%
Other method - 2%
If your business doesn't already accept credit and debit cards or checks, now is as good a time as any to start. You can't argue with the numbers.
When you're ready to think about accepting credit cards, chances are you?ll turn to your bank to process the transactions. It's a logical choice, but your bank may not provide the service or be willing to offer it to you if it considers your business too risky.
Banks are cautious about providing merchant accounts to small businesses particularly Internet, mail order and home-based businesses for fear money won't be there to cover disputed charges or returned merchandise. They're also concerned about potential fraud and abuse.
Although banks have historically provided the service, about 85 percent of credit card transactions now go through credit card processing companies, according to the Electronic Transaction Association.
A credit card processor essentially stands between your business and the bank where your merchant account is located. Therefore, choosing the right credit card processor is crucial to the success of your business.
That's why eBusinessWebhosting.com only uses, and has partnered with Electronic Clearing House (ECHO). They are the leaders of Credit Card processing since 1981, with over 58,000 businesses, merchants, casinos and U-Haul dealers across the nation. They have a 98% approval rate for qualified busnesses, no matter what your previous credit history.
They offer extremely low rates, no gateway fees and no monthly minimums plus they give you a free virtual terminal. However, they do require a business license and a business bank account, except for sole proprietors. Click Here to fill out an online application.
For those of you just starting out and don't want to fuss with the trouble of setting up a merchant account, then we strongly suggest you use PayPal.com. They're rates are reasonable and extremely easy to use.
With more than 150 million accounts in 190 countries and regions, PayPal offers a fast, affordable and convenient online payment service for businesses of all sizes.
The PayPal Business Account features:
Low cost.
No start-up or monthly fees,
no cancellation fees, and
no minimum payments.
Lower transaction fees than other merchant accounts
