With digitization in finance, credit card apps help consumers pay for their bills quickly. These apps act as a seamless bridge between the end consumer and the business owner to complete transactions effectively. With decreasing interest rates and increasing adoption of credit card apps, more and more people are using these cards to pay today.
However, the benefits of credit card apps are not limited to the end consumers only. Unique credit card apps like the iCG Pay Mobile Payments App focus on helping the merchants directly. These applications offer several benefits that help the merchants grow their business both in online and offline modes.
Benefits of Credit Card Apps for Merchants
Offer Contactless Payments
The COVID pandemic has significantly changed how we conduct business today. More and more business owners rely on contactless payment technologies to minimize the risk of exposure to diseases. The modern-day credit cards made by Bank of America, American Express, Discover, and other similar credit card issuers have a small NFC microchip embedded on the surface. These cards do not need to be swiped at a credit card terminal to complete payment. Instead, the consumer can tap the card on the merchant’s card reader to complete payment, thereby reducing unnecessary contact. Here are some more benefits of accepting contactless payments today!
Accept Payments in Card-Not-Present Situations
The unique credit-card apps like the iCG Pay Mobile Payments App help the merchants go a step above the conventional card processing means. They allow merchants to accept payments from customers via credit cards even if they do not have the card present while completing the transaction. As long as the consumers have the card details (the card number, CVV, and expiry date information), they can log in to this app on the merchant’s terminal to complete the payment. This is also known as carrying out a transaction via a virtual card.
Offer Multiple Payment Modes
The best applications offer much more than just credit card processing. Merchants can process both online ACH (echecks) and credit cards on a single platform with some of these applications. Having a single source of collecting payments can help merchants complete their reconciliation processes efficiently.
Offer Cash Discount Program
Rewards on credit cards are one way to save money as you spend money. Consumers who use their credit cards smartly quickly build their credit reports, improve their credit score, and eliminate any annual fees. Have you ever wondered how credit card issuers offer so many gift cards and credit card offers? The answer lies in higher processing fees.
Business owners eat these fees transaction after transaction, month after month, year after year. It forces them to charge more for their products and services to stay profitable. The Cash Discount Programs offer the opportunity to allow consumers to take advantage of cost savings by paying via cash or even checks to get a discount. As a merchant, you can simultaneously use the latest credit card apps and mobile technology to accept payments via electronic checks. Using echecks, ACH, alongside credit cards offers the opportunity for savings to customers while the business saves on those higher processing fees.
Adopt Easier Reconciliation and Reporting
Collecting payments via credit cards can help you create a digital trail of the money in and out of your account. As a merchant, you can easily leverage this information to carry out reconciliation and reporting.
Get Seamless Integration with Back-Office Accounting Tools
Technologically advanced payment processors can help you set up a payments portal and a virtual terminal simultaneously. They can also link these directly to a back-office accounting tool like QuickBooks to help you log your payments automatically. With state-of-the-art plugins, they can integrate these different pieces of payment technology to work as one cohesive unit.
Get Paid Instantly
Credit cards help you get paid instantly. No more waiting for checks to clear or amount sitting in the “uncleared/hold funds” section of your bank account. Consumers prefer credit cards for bill payment because it helps them redeem rewards, and merchants prefer it to leverage the funds received immediately.
Don’t Face the Risk of Bad Checks
Bad checks cause a lot of stress and extra work for both the merchants and the consumers. Unlike checks, payment via credit card mobile apps is instantaneous. If your consumer’s card is blocked due to late payment of bills or if they have reached their credit limit, they won’t be able to pay via that credit card period. Without proper check verification tools in place, business owners could face checks that bounce later due to a lack of funds. The credit card payment is more secure for the merchant in this use case.
Access Benefits of Decreased Processing Costs
A higher processing cost is of the key reasons why some merchants do not prefer accepting payments via credit cards. Sure, credit cards have higher processing costs, but the immediate payments and secure technology still make it a lucrative option for merchants.
Moreover, consumers rarely carry cash or checks anymore. Instead, they prefer paying via Google Play and Apple App Store mobile technology apps to save time and money. Merchants that offer multiple modes of payments attract a more extensive customer base than those that do not.
Properly implementing credit card apps can significantly affect a merchant’s business growth. Partnering with a reliable payment processor is the first step in the right direction toward financial stability in the long term.
Merchants can now accept credit cards and online ACH payments on a singular platform. We can act as a one-stop destination for all your payment processing needs with excellent customer service and advanced solutions. We can also help ISOs onboard new merchants and offer them the faster processing of payments.
Want to know more? Get in touch with our team of relationship managers.
Date originally published: March 09, 2022