Why You Need to Take
Credit Cards on Your Website
Web Commerce Today, Issue 17, December 15, 1998
"If people want to purchase from us," say some naive Internet storeowners, "they can print out our order form and mail it with a check." Sure, they can, but will they? The general rule is to make ordering from you as simple as possible. I've found that 90% to 95% of the subscribers to Web Commerce Today use our secure server and pay with a credit card. Storeowners who accept online checks tell me that these account for perhaps 10% of their sales, and they can only accept checks written on domestic banks.
1. Only universal medium
At present credit cards provide the only universal medium of exchange that can be transmitted electronically. It is true that in many countries credit cards are not as widely used as in the US, but they are still the most widely accepted medium of exchange -- by far.
2. Sell more
By offering sales by credit card you will sell more products or services than if you don't. If people can order it NOW, they will often complete a sale that they would not get around to completing later on. Credit cards also increase impulse buying. Since US credit card laws provide broad protections to cardholders, many prefer to purchase this way.
3. Currency exchange
Only credit cards automatically handle currency exchanges for international sales. If you sell a product in US dollars, for example, to a customer in Canada, the credit card company will pay you in US dollars after subtracting a modest exchange fee. And this is true of storeowners in nearly any country.
If you accept credit cards, you should provide other purchase options, too, of course. Have an order form that can be mailed in with a check. It many not attract too many shoppers, but it will attract some.
When Not to Take Payment by Credit Card
So far as you can legally do so, set a minimum purchase that can be made from your site. You are probably paying a transaction fee on any sale, perhaps 30 to 50 cents. If you receive large purchases of several hundred dollars, try to accept by check whenever possible. If your discount rate is 3% for example, you're paying $30 for a $1,000 sale. But don't lose the sale over this.
By all means, however, plan to accept credit cards on your site!
