Discovering Advantages to Electronic Processing of Payments and Claims

March 31, 2012 by  Filed under: Sales 

Owning a business comes with a lot of responsibility. Juggling expenses with income is an act that is often challenging for smaller businesses. Some may not yet accept electronic processing for payments and claims in an effort to save on fees and equipment costs. However, while there may be plenty of paying customers, it may sometimes seem as if it takes a long time to see their money. Using credit card transaction processing for payments and claims is one way to speed up the process. It also helps merchants track customers and shopping trends. The more information a merchant has, the better able he is to move with consumer trends and capture additional sales.

Time
A company that relies upon checks or money orders from long-distance customers knows that this takes time. When it takes longer to receive the payment, the merchant loses out on the use of that money. For businesses that run on a shoestring, a week through snail mail and an additional three to four days for a check to clear could make a significant difference. When the business can accept credit cards, the money is deposited directly into the merchant’s account. This means it is readily available in 24 to 48 hours. This also speeds up the long-distance order process. Rather than the merchant waiting for the order and the payment, it is received much faster through electronic processing.

Information
When a company has electronic credit card payment processing, it can better track its customers and their spending habits. With basic credit card information, the merchant can see how often the same customer makes purchases. For business-to-business transactions in particular, this can be a valuable customer service tool. When it’s combined with inventory control, the merchant can be sure that certain items are always in stock or readily available before the customer places the order.

Opportunity
Electronic processing of payments and claims opens up a new window of opportunity. The company that accepts cash, money orders and checks only is also missing out on business from credit card customers. According to the Federal Reserve Survey of Consumer Finances, 72 percent of American families own at least one credit card and 78 percent own two or more, the opportunities for credit card use abound. With a higher percentage of consumers using credit cards, there is a higher likelihood they will use plastic to increase their purchasing power.

When a merchant is ready to take business to the next level, offering electronic processing of payments and claims is one way to entice new customers. Not only does it speed up the customer’s receipt of merchandise, but the merchant has access to the money sooner.

Author writes about a variety of topics. If you would like more information about credit card payment processing, visit http://paynetsystems.com/.

Article Source:
http://EzineArticles.com/?expert=Jeremy_P_Stanfords

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