Why Your Business Needs to Accept Payments with Credit Card

A business which does not accept payments with credit card is at a disadvantage compared to its competitors. When your business does not accept payments with credit card, you are unnecessarily adding an inconvenient hurdle to your potential customers. 

This could result in losing potential sales as your customers may switch to your competitors because they find businesses which accept payments with credit card are more trustworthy and hassle free. To illustrate how much revenue you may lose if you don’t accept payments with credit card, we have prepared a simple calculation. 

How Much Money Can You Gain If You Accept Payments with Credit Card?

If your business does not accept payments with credit card, you are losing $594 billion per year. Let’s break it down.

To understand the forecast of how much sales you lose if your business does not accept payments with credit card, we need to look into how many Australians own a credit card, how often they use their credit cards to make a purchase, and the average amount of payment they make with a credit card.  

How Many Australians Prefer Businesses Which Accept Payments with Credit Card?

99 percent of Australians own at least one debit or credit card or both. Moreover, on average all credit card holders in Australia make 33 percent of their payments with a credit card. 

There are over 20 million people aged 18 and above in Australia - with 18 being the minimum age to be eligible to own a credit card. Since one percent of Australians do not have at least one debit or credit card or both, we can assume the number of credit card holders in Australia is 99 percent times 20 million people, which is 19.8 million credit card holders.

How Much Money Do Australians Spend on Businesses Which Accept Payments with Credit Card?

The average number of monthly purchases per credit card in Australia is 22, and the average value of each credit card purchase is $113.

This means, businesses which do not accept payments with credit card are losing on 22 purchases per month times $113 per purchase, which results in almost $2,500 per customer per month. Annually, this number becomes $30,000 lost sales per potential customer. 

Multiplied by the 19.8 million credit card holders in Australia, you’ll end up with a loss of $594 billion per year if your business does not accept payments with credit card. 

Since this number is calculated based on every type of payment Australians make with their credit cards, depending on the type of your business and the size of your market, adding credit cards to your payment options may not necessarily increase your revenue by $594 billion. However, you can be assured that your revenue will definitely increase compared to if you insist on not accepting payments with credit cards. 

Not to mention, there are other benefits of offering credit cards as a payment method for your business. On top of the increased sales, when you accept payments with credit card, your business will also enjoy improved cash flow because credit card payments are processed quicker than other payment options. Hence, the payments are usually sent into your business account on the same day. 

Credit cards are also more secure as credit card companies have security measures to prevent fraud and provide liability protection for you as the merchant and for your customers. 
If you’re considering adding credit cards as a payment method for your business, contact our friendly team to discuss how we can help you set up credit cards payment gateway and seamlessly integrate our system with your existing software.