| Build Your Business with Credit Card Inertia |
Nothing could be further from the truth, and there are many more ways in which taking credit cards can significantly help your business than might at first appear.
The reason why people generally start taking credit cards is that it gives you another way in which to get money out of the client, and you can do it during a collection call by asking whether they would like to take care of it by credit card.
The much more powerful reason, however, is in those cases where you have recurring revenue in the form of contracts, retainers, membership dues, subscriptions, etc. If you take credit cards for these items then you are allowing inertia to work in your favor by effectively taking away the decision as to whether to renew or not. If you send out an invoice and allow the customer to pay for the renewal by check (or by credit card for that matter) you are creating a decision point and inviting them to consider whether or not they want to renew. As they sign the check they may decide that this is an expenditure that they no longer want and you have suddenly lost a client. If they have signed a credit card authorization that permits recurring payments then there is no decision process at all, and the only opportunity that they really have to review whether they want to make the expenditure or not is always after the fact and much more difficult to do. Some people say that credit cards are an expense they are not prepared to consider. If you feel that way consider what the value is of having recurring payments made by credit card so that you don’t have to chase them, you get your money quicker and you remove the decision point that otherwise exists. I would pay 3% for that any day.
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