Slow credit card processing for your small business and insecure credit card processing are some of the many mistakes small businesses in America make in relation to credit cards. Credit cards are a great asset to businesses if you know how to use them. Sometimes, however, small business owners misuse their credit cards and this can end up harming their business. When using credit cards, it is necessary to avoid the following mistakes.
Not understanding the benefits of credit cards
One of the biggest mistakes you should avoid as a small business owner is not taking enough time to understand the full benefits of using credit cards. Some credit card issuers offer packages that include several benefits for cardholders to help them make their business more profitable and productive. These benefits include cell phone protection plan, ID theft expense reimbursement insurance and more. If you don’t understand these benefits, you will never utilize them to their full potential.
Using personal credit cards for your business expenses
It is okay to use your personal credit card for business expenses and record then recover your money later. However, a lot of business owners use their personal credit cards for business records and fail to record. When you use your money to pay business expenses and fail to record, at the end of the month, you may have made a terrible loss but you may think that your business is doing well.
Not offering credit card payment options
Working with the best credit card processing company in America is essential to ensure that you are offering a variety of payment options to your customers including credit card payment. Some small businesses are not keeping up with the changing preferences and habits of their customers, particularly regarding how their customers want to pay for the services and goods hence risking sales. According to current business research, 32% of customers never make purchases at businesses that don’t accept debit cards and credit cards. Additionally, 18% of customers would walk away from a transaction if they find that that particular business doesn’t accept the brand of credit card they have. If you want to grow and protect your customer base, it is crucial that you have a variety of payment options including digital payments, credit cards and debit cards.
Not monitoring the card usage of your employees
It is typically convenient to give out corporate credit cards to your employees so that they can easily pay for business expenses. However, as a business owner, it is crucial to keep an eye out on what your employees are charged to pay for goods and services. You should also ensure that these are authorized business expenses. If you don’t monitor their usage, your employees may abuse the privilege of owning a business credit card.
Going for cheap credit card processors
With numerous credit card processing small business companies in America, you might be tempted to go for the lowest cost. While this may seem like a saving strategy, you might end up getting poor quality services.