Accept major credit card
The advent of the credit card in the early fiftys with the launch Diners Card followed by the Amex card added a new dimension to retail marketing. In fact it was the harbinger of a new concept in retail trade . Earlier the only form of trade or buying an item was by paying liquid cash or a hire and purchase scheme that was propagated by a few retailers and big business houses. These schemes were generally associated with a local bank which underwrote the purchase. The turnover was generally low and this translated to low sales . There was an innovation with mail order sales but yet the overall quantum of sales and turn over as per present standards was generally low. This we can visualize only now with sales and purchases all over the world having taken a quantum leap forward.
The rules of trade and purchase that had existed for centuries changed with the advent of credit cards. This raised the possibilities to unimaginable heights. Credit Cards came to be accepted as a form of payment for goods and services supplied in lieu of hard currency. In fact they replaced ready cash as the card could duplicate all that could be carried out with cash. There was also the added advantage of not carrying a bulky wallet with its inherent risks. The slim credit plastic card duplicated all the effects of hard currency. Merchants began to accept credit cards as a form of payment for the goods supplied. With the turn of the present century sales through credit cards have reached a crescendo. Yet a lot of financial specialists feel that the limit is yet to be reached. The major credit card companies like Visa, MasterCard, Discover and Amex have cornered the entire field of retail marketing and there is hardly any room for a new player . They have built up a brand equity that is difficult to emulate . Moreover they are global players and can be used with impunity in any part of the Globe. All big store chains like Wal-Mart, Sears etc accept credit cards . Even smaller stores readily accept credit cards even in the smaller towns . The end result is predictable with vast turn over and sales touching $1.5 trillion. This could not have been visualized when the first set of credit cards was launched in the fifties of the last century.
The internet is one tool that has given a tremendous impetus to the use of credit cards. It has resulted in global sale and purchases that transcend boundaries of nations. E -commerce as it is known is new hot mantra of the marketing gurus . Merchants accepting credit cards can show sales and turnovers of their businesses that exceed their wildest imagination. The bottom line is that acceptance of credit cards shows a healthier bottom-line. This is because the reach of these merchants is now global. A person sitting in Spain can very well buy an item on the net from The United States. This would not be possible without the advent of technology that keeps the sales secure and safe. Latest technology ensures that your deals on the net cannot be subject to a fraud. The chance of your credit card being compromised is very low . But this does not mean no credit card fraud takes place . But what is important is that the frauds are kept to what is termed as acceptable levels.
Merchants who accept credit card signal their agreement to give items to customers who hold valid credit cards. All Credit cards have fixed credit limit and validity . These limits can checked electronically and can be verified at the time of purchase of the item.Once the availability of funds is verified the merchant is duty bound to release the item though no physical cash is received. All this takes place in real time and the entire operation is over in less than a minute .
A merchant to accept credit cards has to first apply to the bank for this facility. This is a essential step but of great importance. The merchant parts with all information regarding his sales, type of goods, address and credit report. Once the bank accepts the merchants request it will authorize him to sell goods to valid credit card holders. Considering the fact that there are 1.5 billion cards in circulation the merchant can hope to affect a larger sale and consequently a healthier balance sheet.
The option of a merchant to sell in the store or on the net rests with the merchant. He will have to apply separately for both types of trading deals . When a merchant is allowed to accept credit cards at his retail store then a few simple steps are to be carried out . Firstly he is given the hardware for the tasks which consists of swipe machine and card reader. This machine is linked in real time and can create an interface with the Bank, the customer and the account of the merchant and the customer . Software training is normally provided by the card issuer to the staff of the merchant. Once the card is swiped all data is processed instantaneously and the sale is affected.
The procedure of accepting credit cards on the net is a bit different. Here the merchant carrying out the transaction sees a virtual image created on the screen of the monitor. The data is then fed in by the customer and the deal is finalized in real time.
Merchants who accept credit cards have healthier bottom lines. Thus accepting credit cards is the in thing of e-commerce in the present day
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