stephenwinbaum
Communications Coordinator
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Aug 16, 2006, 1:34 PM
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Credit Cards Makes Good Business Sense for Summer Camps
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Summer camps, which are commonly small-to-medium size businesses, are taking advantage of the latest technological advances – including electronic transactions via credit card payment.
There are many reasons for summer camp owners to provide electronic payment as an alternative to traditional checks or invoices. Parents can utilize credit cards to pay enrollment fees, and camp administrators can participate in their business matters electronically.
The electronic payment alternative is explained comprehensively by Moneris Solutions. For a complete financial analysis of the value of credit and debit cards for small-to-medium size businesses, like summer camps, Moneris Solutions offers a lot of answers in the quick read below.
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Moneris Solutions
As the use of cash and checks decline, credit and debit cards are providing opportunities for small-to-medium size organizations - like summer camps. These increasing payment options are simple and cost-effective actions to help strengthen the competitive edge and improve the bottom line.
Electronic processing systems support business and customers by facilitating faster and more secure payment than the traditional methods – cash and check.
Opportunities in Electronic Transaction Processing
Industry data demonstrates the growing reliance on credit and debit cards and the continued shift from checks to electronic payments. Credit cards are used to make over 40 percent of all retail store transactions, 65 percent of mail and telephone orders, and 95 percent of e-commerce transactions.
It is critical for small to medium businesses to accept credit and debit cards to retain and attract clients. Providing clients with a broad range of payment options results in increased purchasing power, timely payments, and customer satisfaction.
Key Benefits of Credit Card Acceptance
Credit and debit cards are fast becoming an important payment method, yet small businesses are typically underserved by processing companies.
Accepting credit cards makes good business sense. There are seven key benefits derived from accepting credit cards – all of which add up to a smart business decision.
1. Increase Sales
Industry research indicates that the ability to accept credit cards increases revenue by as much as 23 percent. Credit Cards are popular due to convenience. Customers have the power to make purchases that they deem necessary even though they don’t have the cash on hand.
2. Improve Cash Flow
Electronic transaction can help speed up the payment process. Instead of waiting for checks to clear, or for invoices to be paid, funds resulting from credit and debit card transactions are deposited directly into the business's bank account, often within 48 hours. Electronic payment enables faster payment cycles which lead to improved cash flow.
3. Increase Average Ticket Size
Credit payment helps boost the average sale. Customers paying with credit cards typically spend about 20 percent more than when paying with cash or check, meaning larger purchases and more impulse buys.
4. Improve Productivity
With credit card processing, the transaction flow is conducted automatically directly to the bank account. Small to medium-sized businesses do not have to worry about acting as payment collection agents; the payment processing is left in the hands of the bank or transaction processor.
5. Lower Costs
Accepting credit cards helps streamline operational costs and cuts down on overhead by eliminating the need to send bills and manage account receivables. It is less expensive to process credit and debit cards than to accept checks. And, it helps to control shrinkage; the process is automated so there is no cash on hand to walk off with.
6. Better Customer Service
Since consumers like the speed, flexibility and convenience of electronic payments, credit card acceptance helps improve customer service. Superior customer service translates into customer loyalty.
7. Enhance Your Business Image
By accepting credit cards, companies gain valuable credibility in the eyes of both current and potential customers. Accepting electronic payments gives businesses the opportunity to display that they accept credit cards and include the appropriate card logos on business cards, brochures, offices, or websites.
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The above article is an excerpt from:
'Credit Card Acceptance Makes Good Business Sense' by Moneris Solutions
Visit Moneris Solutions
Stephen Winbaum is the Communications Coordinator of MySummerCamps.com
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(This post was edited by stephenwinbaum on Aug 22, 2006, 8:43 AM)
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