How Millennials Affect Credit Card Processing in 2021
March 8, 2023 | Low Risk Merchant Account | Dustin
In this highly digital, online for everything, technologically advanced world we live in, it’s mind-boggling that there are still some companies that do not accept credit card payments as a method. Why is this? How are these businesses successful? The biggest complaint is the fees that merchants have to pay for credit card processing and many of them don’t want to cover those costs.
However, as we head further into 2021, as far as payment processing goes this is no longer a good business practice. It’s crucial, now more than ever, that businesses are available to accept credit card payments since so much revenue can be obtained through it. Businesses that don’t utilize credit card processing and are not set up for mobile credit card processing are hindering their development, long-term growth financially, and their competitive edge.
Here are a few of the prominent reasons that being set up to accept credit card payments as a form of payment processing is so very important for both online driven businesses and brick and mortars alike:
More People than Ever are Using Credit Cards
By 2025, the millennial generation (those born between 1981 and 2005) will make up over 75% of the workforce. Why does this matter? Well, they’re currently earning more money, which means that they’re spending more as well. How millennials invest their money and the ways they pay for products and services are hugely important.
It’s vital for the longevity of your business that companies like yours have the ability to process the kinds of payments that millennials prefer to utilize, which is typically not writing checks or carrying around large sums of cash, for the most part, the preferred payment methods are credit card processing and mobile credit card processing. Eighty percent of millennials have a minimum of one credit card, and 27 percent of millennials have said that more than half of the disposable income is spent using a charge card. That is a great deal of credit card processing, as well as many missed sales and chances for your business to capitalize if you do not accept credit card payments as a form of payment processing.
The majority of millennials do a lot of online shopping since it’s preferable for them to be able to shop anytime they want and wherever they want. Online shops use credit card processing as their primary source of payment processing (although other options, like gift cards, can also be available) because the ability to accept credit card payments is the easiest payment processing option.
It is more than safe to say that the development of online shopping will only continue to increase. It is estimated that, by the end of the year, that online shoppers will likely be spending a whopping $39 billion, and credit card processing is the only way into this market. For this reason alone, it is critical that credit card processing can be obtained with a merchant account gateway and can be done with processing fees that are manageable for any given business.
For those merchants that are considered to be high risk, you will need to apply for a high risk merchant account with a reputable expert like those at PayKings, who offer payment processing for your online business, even when you have been declined everywhere else. Online shopping is here to stay, and merchants should be engaging with this shopping strategy of online purchasing to remain competitive.
Providing Payment Processing Options
Everyone likes to have choices. Your business’s ability to accept credit card payments provides customers with the ability to choose the way they want to pay. Being given the option to pick their method of payment processing can boost customer loyalty. In this way you have not only given your customer the ability to choose, you have given them an easier way to pay – an option that is secure and cost-effective for them. All these factors conjure up brand loyalty.
A customer who can not pay with their preferred way of payment processing, whether that be by debit or credit card processing, Visa or American Express, a customer is more likely to stop buying with you if they don’t have the freedom to choose their preferred payment method – especially if your competitors are making it that much easier for them to shop elsewhere.
Credit card processing is a crucial part of succeeding in 2021 (and in the years moving forward) for any business, and the rise of the millennial generation has a heavy hand in that. Because millennials like to use credit cards to pay, and are even partial to mobile credit card processing, particularly when they have cards that give them cash back, this propels the growth of credit card processing and payments for online shopping. The ease of online shopping has prompted many individuals to get at least a minimum of one credit card – which just having it ensures that they use it often.
If your company is unable to process credit cards as a form of payment, then you are missing out on a huge slice of the revenue pie, and allowing for your competition to gobble up your portion. Applying is relatively easy to do, once you narrow down a reliable and knowledgeable payment processing company – that said, you can get started by clicking here.
March 8, 2023 | Low Risk Merchant Account | Dustin