Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Generating Revenue, Insurance, Taxes, Etc. > Sales
Register Search Today's Posts Mark Forums Read

Thread Tools
Old 22nd August 2006, 03:22 PM   #1

Join Date: Aug 2006
Posts: 3
Default Why Accept Credit Cards?

I am a business owner, liquor shop, trying to decide if I should accept credit cards in my store.

Most people tell me yeah, and they say something like:

"If I am carrying $20 cash and you don't accept credit cards then that is the most I can spend (TRUE, I GET THAT). If you accept credit cards then I can buy a bottle of wine as well as the twelve pack and might as well throw in a corkscrew as well."

My question is, you only came in with $20 to buy what you wanted, why NOW all of a sudden that you can use your credit card, WHY would you want to buy a bottle of wine, a twelve pack, and a corkscrew....why, when you didn't want to before?

See my question, why do customers ALL OF A SUDDEN, spend more using a credit card.....when they were not going to do it with cash?

What I am saying, is WHAT MAKES A CUSTOMER, spend more using a credit card? What guarantees do I have that a customer would spend more using credit cards? They come in to buy something worth $10 with cash, now that they can use their credit cards...WHY WOULD THEY, add on $5 worth of extra items?

See my question?

Cashflowfmp is offline   Reply With Quote
Register or log in to remove this ad.
Old 22nd August 2006, 04:21 PM   #2
Old Welsh Guy
Old Welsh Guy's Avatar

Join Date: Jun 2004
Location: Wales
Posts: 700

As a salesman it is YOUR job to entice people to act on impulse and spend more. Prime example. I went out to a friends house. I was going to take a bottle of wine and 6 cans (I had £10 in my pocket) . At the store they had slabs (24 cans) on offer for £10 and 3 bottles of £5 wine for £10. I spent £20 on my card. simple as that really.

Old Bald & Stupid, but more than compensated for by being born Welsh.
Google Expert blog - Internet Marketing Consultancy
Old Welsh Guy is offline   Reply With Quote
Old 22nd August 2006, 04:47 PM   #3

Join Date: Aug 2006
Posts: 16

I think the main reason that I want to be able to run my card is just conveniece. Now a days people don't carry around a check book because it is bulky and they don't carry cash because it is just easier to use a card. Infact just having a credit card machine might increase your business. Based on that I think investing in a credit card machine would be a good jdea.

Last edited by outbackson; 22nd August 2006 at 04:50 PM.
outbackson is offline   Reply With Quote
Old 22nd August 2006, 06:01 PM   #4

Join Date: Aug 2006
Posts: 3

Okay, guys I understand that but......

I've been in business for 5 years, I don't get a whole lot of new flowing customers, the customers that I get are customers who already understand I don't take credit cards, there's an ATM down the street, so when they come in, they already know that they need enough money to cover whatever it is they want.

I don't get a lot of customers coming in trying to use their cards, because I get majority of the same customers and they already know the drill, the couple new customers a week are not "enough" in my opinion to change.

with the way things are now, why would putting a credit card machine in my store, INCREASE sales, if I get the same amount and same customers all the time since 5 years, who already know the drill? Where's the increase in sales coming from?

Cashflowfmp is offline   Reply With Quote
Old 22nd August 2006, 08:21 PM   #5
torka's Avatar

Join Date: Mar 2006
Location: Triangle area, NC, USA, North America, Earth (usually)
Posts: 4,101

Search Engine Guide Blogger


I generally don't carry a lot of cash, relying instead on my debit card. Often I have no cash on hand at all. Unless I see that sign on the door with the credit/debit card logos, I generally won't even go in to the shop, because why would I go waste my time looking around in a place where I can't buy anything?

Sure, there's an ATM pretty much on every corner, but that's not always convenient. Maybe it's hot, maybe it's raining, maybe it's getting dark or there's a shady-looking character standing nearby and as a woman shopping alone I don't feel comfortable walking down to the ATM and withdrawing a big ol' wad of money. Maybe I'm just feeling lazy.

The point is, if you don't accept cards (and show me you do so where I can see if from the street), I'm not even coming in your store. There are enough other stores around who sell what you do that I don't need to inconvenience myself.

Sure, your regular customers have learned to accommodate your idiosyncracies, but have you considered that you may be losing potential customers like me, who won't even come in to start with unless we see you accept credit/debit cards?

Every obstacle you place in between a customer and a sale represents potential lost sales.

Why not try it out? Baseline your overall sales (numbers and dollars) and your average sale per customer so you have a benchmark to compare against. Then sign up for a service that doesn't require a long-term commitment and give it a couple of months. Be sure to post the credit card logos on your door and put signs out on the counter and around the store announcing that you now accept cards.

See how many of your customers use a card versus how many pay cash. See how many customers in total you have. Track the average sale size for a customer paying cash versus a customer paying by credit/debit card. Track your overall sales (adjusted for seasonal variations, of course). Compare to your pre-card benchmarks.

If it turns out you aren't selling more by accepting cards, cancel the agreement and go back to business as usual. No harm, no foul.

If on the other hand, it turns out that average sales are higher for card-carrying customers and/or total sales are higher after you start accepting cards, then continue the agreement.

It's not really that big of a deal. Just test it and see what works.


Diane Aull - NineYards.com: Helping Businesses Do Business Online
Whether you think you can, or that you can't, you are usually right.
torka is offline   Reply With Quote
Old 22nd August 2006, 09:46 PM   #6

Join Date: Sep 2004
Location: Glenside,PA
Posts: 14
Send a message via Yahoo to aweston39
Default Credits cards are a good way to increase implulse sales

We have an online jewelry and gift business and do accept credit cards through paypal.

We also do local craft shows and holiday bazaars.
We have found that people go to these events with very little cash.
They see somthing they like at my table but have not seen the whole fair yet.
By the time they get back to me, they have spent all their money on food or other vendors.

Since we accept plastic, they still can buy from us and usually wound up buyng more than they would with cash.
It may cost us money to process the cards but we definitely make more sales by accepting cards that we would if we didn't.

I hope this helps.
Westons Jewelry & Gift Emporium

Last edited by aweston39; 22nd August 2006 at 09:48 PM. Reason: do not want my signature onthis post
aweston39 is offline   Reply With Quote
Old 22nd August 2006, 09:58 PM   #7
VIP Contributor
pete's Avatar

Join Date: Jul 2005
Location: Hampton Roads, VA
Posts: 488

Nobody can twist your arm and make you install one.

And there is probably no one here who can convince you, in terms you are looking for, to change your way of doing business. There are no guarantees, and none of has a degree in whatever to convince you, beyond a shadow of doubt, that there are people out there that really do buy more than they walk in the store to buy - because you don't. Liquor store, C-store, Macy's or wherever, you buy what you went in for and that's it.

So, you think everyone is like you. Well, I'm that way, too. But I can tell you from years of retail experience that most people are not wired that way.

Two facts - one, you have absolutely no idea how many local people walk by your store who HAVE NEVER walked in - just because you don't have those stickers on your door. You don't know, and you'll never have an idea of how much business you have lost, again, because you don't realize that not everyone thinks the way you and I do. (Except I know they don't, and you haven't learned it yet.)

Two, you can only prove it to yourself one way. You get a card account and go for it. Get one without a long term contract. If you want to go cheap, get a terminal off ebay (you have heard of them, haven't you?). So it's going to cost you 3% of your sales, but nobody is going to use them, so it waon't cost much anyhow. If your sales don't increase, cancel. You're out a couple of hundred, but you tried. (And you made me look like crap.)

Or, you could do the third thing. Go full bore. Get a terminal with a PIN pad and get hooked up where you can give cash back. Instead of sending them to the ATM, you can be the ATM. You make money on cash back, you know. So, if they're in there picking up their partyables and need some cash for the cab, you can give them $ 40 back and make a buck or two on the deal. And be a hero, since they didn't have to stand in line at the ATM.

pete is offline   Reply With Quote
Old 23rd August 2006, 01:15 AM   #8

Join Date: Aug 2006
Posts: 12

Originally Posted by Cashflowfmp View Post
Okay, guys I understand that but......

I don't get a lot of customers coming in trying to use their cards, because I get majority of the same customers and they already know the drill, the couple new customers a week are not "enough" in my opinion to change.

Which is why you get the same customers year after year, and no new ones. Everyone knows the drill, and anyone asking to buy alcohol will be told “don’t’ go to that store if you only have a credit card”.

Most shoppers are impulse buyers when they have a credit card.

I personally never carry cash and I prefer to shop in locations who take credit cards. Say I had cash, I might not have more than $20 in my wallet. If I came into your store to buy a bottle of wine for $10 and saw you had some other stuff on sale, I would not be able to buy them, but.. if you took credit cards, I would. Now what are the chances of me going to an ATM machine to withdraw money? ZERO. I do not do have a pin number for my credit cards and I do not have a debit card.

Besides, Some people like to use their credit cards so that they can have a paper statement of how they spend their money monthly and yearly.

Last edited by Sintina; 23rd August 2006 at 01:17 AM.
Sintina is offline   Reply With Quote
Old 10th September 2006, 07:49 AM   #9
Senior Member
lunartcorp's Avatar

Join Date: Jul 2006
Location: Miami, Florida
Posts: 129


I use debit card to track my expenses. This debit card is issued by a Credit Card comapny and can be only accepted on stores where credit card is accepted.

Because of this, I check stickers at the store door to see if my credit card is accepted. If the store does not accept it, I just walk away.

I usually do not have cash with me or at least very few. If I had $20 and I have the opportunity to pay with Credit Card, I would do it just for not beeing out of cash in my pocket.

Most of the people will be willing to spend a little more than the cash in their pocket, if credit card is accepted.

I like good service and comfort when buying. If I had to go to an ATM to get cash, I would walk to another store. I have done it before.

Try the service because only you can evaluate based on your experience. If you do not seem any added value, cancel it.

54 of the WORLD's MOST BRILLIANT Business and Marketing Minds. ALL IN ONE PLACE Ready to help YOU for FREE
lunartcorp is offline   Reply With Quote
Old 10th September 2006, 08:12 AM   #10

Join Date: Mar 2006
Posts: 12

once i got my business line put in i got tons of call on it with out the number being out to the public yet. they all asked if i wanted to accept credit cards. i didn't go for it yet but I'm sure i will eventually. they gave me a quote for 1.39% and i would get the machine for free, the only cost would be 1.39% of my sales. if you want the number let me know.

Cleanfreak is offline   Reply With Quote


Thread Tools

Get Updates
RSS Feeds:
RSS Feed for Sales RSS for this Category Only: Sales

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Small Business Ideas Forum

At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
Search Engine Guide
Small business guide to search marketing

Small Business Brief
Fetching the Best Small Business Info

Used Values - Free Links
Blue Book

All times are GMT -5. The time now is 08:05 PM.

Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy