Credit cards: THE RIGHT STEP
From: www.allbusiness.com
Accepting credit cards is becoming a must for entrepreneurs and small businesses in today's business environment. There are numerous social, demographic and technological factors combining to make plastic the payment form of choice for increasing numbers of people.
Why To Use Credit Cards
to buy something one must be convinced of its benefits and need. Just spend few minutes and get convinced by grasping the reasons as to why go for a credit card. Consumers typically use cards because they don't want to carry cash, want to save cash in hand, gain loyalty points (such as airline miles), make a large purchase, make a reimbursable purchase for and are looking to float money in a bank account.
Plastic on the Internet
Even as credit card use grows in the real world, plastic already dominates the world of Web shopping. This breakdown of how people pay for online purchases demonstrates that credit cards are the key to e-commerce:
Credit card online - 85%
Check mailed - 10%
Credit card via phone - 2%
Credit card via mail - 1%
Other method - 2%
The Rising Trend
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. Credit and debit cards are expected to account for 33 percent of all purchases by next year and for 43 percent by 2005. According to one estimate, businesses forfeit up to 80 percent of consumer impulse buys if they don't accept credit cards.
Accepting credit cards is becoming a must for entrepreneurs and small businesses in today's business environment. There are numerous social, demographic and technological factors combining to make plastic the payment form of choice for increasing numbers of people.
Why To Use Credit Cards
to buy something one must be convinced of its benefits and need. Just spend few minutes and get convinced by grasping the reasons as to why go for a credit card. Consumers typically use cards because they don't want to carry cash, want to save cash in hand, gain loyalty points (such as airline miles), make a large purchase, make a reimbursable purchase for and are looking to float money in a bank account.
Plastic on the Internet
Even as credit card use grows in the real world, plastic already dominates the world of Web shopping. This breakdown of how people pay for online purchases demonstrates that credit cards are the key to e-commerce:
Credit card online - 85%
Check mailed - 10%
Credit card via phone - 2%
Credit card via mail - 1%
Other method - 2%
The Rising Trend
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. Credit and debit cards are expected to account for 33 percent of all purchases by next year and for 43 percent by 2005. According to one estimate, businesses forfeit up to 80 percent of consumer impulse buys if they don't accept credit cards.
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