The greatly high average credit card debt per household tells just how people love using these cards to carry out transactions. There is a lot of speed, convenience and security with the use of these plastics for transactions.
Even though merchants also enjoy the same benefits as households when they use credit cards, a good majority are still slow to accept credit card payments from their B2B customers. Here are some of the reasons which justify that apparent reluctance.
- Card-based dealings carry additional charges. The fees typically range from 2 – 5 percent.
- Potential damages are high. Chances for fraud within the B2B ecosystem are far less. However, since transactions in this community are often high volume or involve big-ticket items, the potential loss in the unlikely event of fraud can be extremely damaging to the business.
Well, it’s high time this scenario changed. Despite these potential, drawbacks, there are compelling reasons why you should start accepting credit cards from your B2B clientele.
- A much bigger market.
The majority of your clients prefer doing business using these cards. Accepting B2B card payments helps you connect directly to these clients. Smaller businesses and startups in particular normally tend to rely greatly on corporate plastic.
- Greater total sales volume.
Credit cards admittedly comprise only a small fraction of the B2B sales. However, the total sales volume is quite huge. Forrester Research reported that online B2B sales in 2015 amounted to $780 billion. The researcher expects that number to increase to $1.13 trillion by 2020. That only means that there is a great potential in the industry and you can start tapping into that revenue right now by accepting credit card transaction from your B2B clients.
Credit cards allow for payment integration. You can have all your sales data automatically synched with your favorite accounting ERP and CRM platforms. This is something you should be cheery about, especially now that you can open a tech support merchant account with platforms like emerchantbroker.com.