August 26, 2021
Average Read Time: 3 minutes
If you’re a merchant, you may already know that offering multiple payment methods can boost sales – in some cases, by nearly 30%, one study showed. Sellers that accept 4 or more payment options bring in 7 times more annual revenue than those offering fewer options.
But did you ever think about the importance of displaying your payment options as early and prominently in the buying process as possible? The fact is, when people see that you accept their preferred payment methods, they are more likely to complete their checkout – whether online or in a brick-and-mortar store. And that means fewer abandoned shopping carts and more money in the bank for you.
Generally speaking, people have a number of reasons to prefer one payment method over another, including loyalty and discount programs, lower interest rates, and higher spending balances. Some folks like to have one primary card and make all their purchases on it, particularly when benefits such as airline miles are connected to it. Still others choose not to use credit cards, and need to know that there are non-card payment options they can use, such as ACH payments.
Promoting payment methods is important in all cases, but particularly when you accept options that might not be as common. For example, American Express is not as frequently promoted as other cards, but AmEx cardholders typically spend more than others, according to the company’s research. If AmEx is a customer’s card of choice, but they don’t see acceptance displayed prominently, that customer might go elsewhere.
And interestingly enough, we’ve looked at our own records and found that when merchants start promoting acceptance of American Express, the value of total card transactions increases. It’s not simply a matter of shifting transactions from one card type to another.
Another example is UnionPay. UnionPay is the most widely circulated payment card in the world, with more than 9 billion cards worldwide. Some businesses offer their services to those cardholders around the globe. But other, more US-focused businesses, recognize the power of the Chinese buyer in the United States: more than 5 million people of Chinese descent live in the country, 3 million Chinese citizens visit each year, and nearly 400,000 attend American universities. That represents a significant market for some businesses from people who may not hold any other card brands.
Promoting UnionPay acceptance to those cardholders will attract their spending to your business. And here’s an important note: some US businesses can accept UnionPay credit cards, but 75% of UnionPay cards are debit, which get declined at an extremely high rate. MerchantE now addresses this gap with exclusive US support of UnionPay SecurePlus, which enables merchants to consistently accept online UnionPay debit card transactions with a simple, customer-friendly authentication process. So promoting UnionPay can open a substantial market to your business.
And it isn’t just about promoting card brands. Acceptance of ACH payments is also important to advertise. Quite a few people are debt-averse and avoid having and using credit cards. In addition, business buyers may not be set up to pay by credit card and are accustomed to paying vendors with check or account debits. ACH as a payment option can determine where they buy their business supplies.
So, whether you post payment methods you accept on your website home page, product pages, or checkout page; whether on your front door, next to your point-of-sale devices – or all of the above – promote your accepted payment methods early and promote them often. It may mean the difference between a potential customer stopping to buy with you – or not.
To download payment logo artwork from American Express (including other common cards in addition to AmEx) visit here.
To download payment logo artwork from UnionPay visit here.
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