Advantages for companies accepting credit card
In general, card sales bring benefits to companies of all sizes. However, companies with higher sales volume can benefit more, since this is the main criterion used by the accrediting companies in the formation of their prices…
Does your company accept cards as a form of payment?
Even so, card issuers and issuers already consider micro and small companies as the new line, either as potential users of corporate cards (5.9 million ventures) as well as mass mailing channels, since the Abecs Datafolha survey identified That 71% of the accredited companies have less than 10 employees. The surveys present high levels of satisfaction on the part of the accredited establishments and indicate as the main reasons to eliminate the risk of non-receipt, as well as of theft, deviations and lack of control of accounts receivable.
Entrepreneurs also identify the following conveniences:
- The cards meet customer needs, especially regarding timing and agility in purchases;
- Card companies do not lose sales and can significantly expand their business;
- They create customer amenities and competitive advantages for the entrepreneur;
- They offer customers alternative cash payment (single installment), debit in current or installment accounts;
- Wireless machines are taken to customers to make payments;
- They offer the possibility of selling online, via the internet;
- Reduce the need for equity for client financing;
- Reduce costs with control of accounts receivable;
Disadvantages of Credit Card Systems
The main weaknesses pointed out by accredited establishments, according to the researches, can be summarized as follows:
- Long installment periods imply the need for more working capital and / or anticipation costs;
- The costs of financial intermediation or the discount and use of equipment are still high;
- Prepayment rates are still high when compared to other working capital operations;
- The risks of fraud, although reduced, require care in identifying the bearers at the time of purchase.
Risk of cancellation of the sale operation. The most common risk of a sale made with a credit card is the cancellation of the transaction. In the market, this is known as Chargeback and occurs primarily in online sales, via the internet, when operations dispense passwords.
Cancellation usually occurs for two reasons: failure to recognize the purchase by the cardholder, and the fact that the transaction does not comply with the regulations established in the agreements with the creditors. Credit card companies do not guarantee internet sales transactions.