How Millennials Affect Credit Card Processing in 2020
June 25, 2023
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 cards as a method of payment. 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 2020, 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 credit card processing since so much revenue can be obtained through it. Businesses that don’t accept credit cards are hindering their development, long-term growth financially, and their competitive edge.
Here are a few of the primary reasons why accepting credit cards 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 method is by credit card. 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 cards as a form of processing payments.
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 cards as their primary source of payment processing (although other options, like gift cards, can also be available) because accepting debit and credit cards 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 2020, that online shoppers will likely be spending a whopping $39 billion, and credit card payment processing is the only way into this market. For this reason alone, it is critical that credit card processing can be obtained by merchants and that the processing fees are manageable for any given business. For those merchants that are considered to be high risk, PayKings offers 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.
Everyone likes to have choices. Your business accepting credit cards provides customers with the ability to choose the way they want to pay. Being given the option to pick their method of processing their payment 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, whether that be by debit or credit card, 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 payment processing is a crucial part of succeeding in 2020 (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, particularly when they have cards that give them cash back, this propels the growth of credit cards payments and 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. If your business is considered high risk, your options for credit card processing become more limited and you’ll need to apply for a high risk merchant account. Applying is relatively easy to do, once you narrow down a reliable and knowledgeable payment processing company – that said, you can get started with a quick and free quote with PayKings by clicking here.
June 25, 2023 | High Risk Merchant Account | Dustin