In a world where people are leaving their wallets at home and making in-person payments with their mobile phones, is it reasonable to expect your customers to always pay with cash?
The bottom line is, if you don’t accept credit card payments, you’re missing out on potential sales. And if customers have to hunt down the nearest ATM to complete a transaction, the hassle involved makes it likely that they won’t rush back to visit your business.
But if you’re worried that accepting credit card payments will take a big chunk out of your sales or otherwise be a headache, don’t worry. Here are some reasons why you should take credit cards at your business:
- Your sales will be higher. Australians are increasingly moving away from cash. According to the Australian Payments Network, by 2019, cash only accounted for 10 percent of consumer payments, down from over 40 percent in 2007. It’s not hard to see why people prefer credit card payments—it’s a safer, faster, and more convenient way to pay.
- Your customers will feel good about shopping with you. When customers see the logos of the major credit cards you accept, they see your business as more trustworthy and legitimate. For better or worse businesses that can’t process credit card payments are often regarded as less reliable.
- It won’t cost you much. Credit card transactions won’t eat up your profits. In fact, payments taken with Square’s contactless and chip reader cost 1.9% per swipe, tap, or dip.
How to accept credit card payments
Now that you know all the reasons why you should accept credit cards and you’re ready to get started, let’s go over what you’ll need. If you’ve never accepted credit cards, you’ll need an EFTPOS chip card–enabled reader. If you do take credit cards but haven’t upgraded to an EFTPOS-enabled reader, now’s the time.
Here’s why: chip credit and debit cards are inherently more secure than magstripe or ‘swipe only’ cards. For this reason, magstripe-only cards (cards without a chip) are being phased out in Australia. So, protect yourself and your customers with a reader like the Square contactless and chip reader, which accepts EFTPOS and is just $59.
Here’s a step-by-step guide for how to receive credit card payments:
- Order your Square hardware and tell us where to mail it.
- Create your free Square account.
- Download the free Square app and link your bank account for fast transfers.
- Connect the hardware with your smartphone or tablet and start taking payments.
How to take credit card payments
While magstripe credit cards are swiped, chip cards are dipped into the reader chip-side down. Here is how to process EFTPOS payments on the Square credit card contactless and chip reader:
- When your customer is ready to check out, tap Charge on the screen to trigger the payment. (You can tap charge before or after the chip is inserted.)
- Insert the card chip-side first and with the chip facing up into the wide port at the top of the reader.
- Keep the card in the reader for the whole transaction. Transactions can take 6-7 seconds to complete.
If you’re taking the step to accept credit card payments, why not fully modernise and start accepting mobile payments? Mobile payments, or transactions customers make with their phone or other mobile device, use something called near field communication (NFC) technology.
This means that customers hold their device over an NFC reader—a mobile card reader—to pay (which is also why it’s referred to as contactless payment). The most popular forms of this technology are Apple Pay, Google Pay, and Samsung Pay. Mobile payments are faster than EFTPOS transactions and just as secure. Square Terminal, Square Stand, and Square Reader for contactless and chip accept credit card payments through NFC.