Why Should Businesses Accept Credit Card Payments?

Credit cards have become a popular payment mode in urban India. Its popularity has risen manifolds in the past few years due to banks’ additional privileges over a regular debit card. Credit card users now enjoy cashback, reward points that can be redeemed in countless ways. As per a publication by Statista Research Development, almost 58 million credit cards were in use in India in August 2020. This number was a mere 18.7 million in 2013. The statistic above depicts Indians’ increasing dependency on credit cards and why all businesses must accept credit card payments today.

A credit card is a payment solution provided by a bank to a customer to pay via credit. The customer can pay for goods and services to the merchants using this credit and repay the bank within the stipulated time. This makes it super convenient for customers to buy goods without having sufficient funds in their bank account and opt for high-value purchases on EMI. Merchants, however, need to have the medium to accept and process such payments. For regular brick-and-mortar businesses, they need to have a credit card terminal or a mobile card reader. Online businesses merely need a payment gateway, like Zaakpay, to accept credit card payments.

Benefits of accepting credit cards?

  • Credit payments: While shopping, customers prefer merchants who provide instant and hassle-free online payment solutions. While paying via UPI or Debit Card, the threshold for the customer’s spending is the amount in their bank account. Even then, they would pay only 10-20% of the available funds and save the rest. Credit cards give them the freedom to spend with the liberty of paying later. It also encourages customers to behave impulsively to purchase something they would not have otherwise purchased.
  • Faster processing time: Merchants also get to enjoy quicker processing time with credit card payments. It becomes a great advantage for small businesses to have the payment processed soon after the purchase is made. The business enjoys better cash flow as a result.
  • Earn the trust of the customers: Accepting payments through credit cards legitimizes the business in the customers’ minds. Customers are used to paying via card. Coming across the same mode of payment in a business rather than some relatively uncommon mode assures them of its legitimacy. They also know that they would track down the transaction and the receiver’s account in case things go wrong. This makes them feel more secure while making the purchase.
  • Enhanced customer satisfaction: Earning rewards while spending brings more satisfaction to the customers by lowering down the net expenditure on the goods or services. Psychologically, this makes the customer feel good. Additionally, this also builds the credit score of the customers, benefiting them in several ways. For every purchase, credit cards offer them rewards in the form of points redeemed for other goods or services later on. They may also get cashback or discounts on certain stores or purchases. Certain cards also offer more significant rewards like free access to airport lounges. This makes it a mutually beneficial situation for both the customer and the business. When compared to the customer satisfaction gained from the transaction, the payment gateway charges seem nominal.
  • Protection against unfair means: Few dishonest customers often try to deceive merchants by faking a payment or by invalidating a transaction that had already taken place. This usually happens with small or home-grown businesses. Credit card transactions are much more secure in these terms. Even if a customer disputes a credit card transaction, the business will have legally valid receipts.
  • Being at par with the competitors: Most businesses now offer credit card payments. In such a scenario, customers are more likely to get attracted by those that offer credit card payments. It is vital to provide a unique online payment solution to the customers to stay at par with the competition or stand out among them.
  • Analysis of customer purchase trends: Credit card transactions generate several types of data acquired from the credit card processor. By analyzing this data, the merchants can deduce trends in the purchasing and spending habits of the customers. The merchants can offer campaigns, discounts, and rewards based on these trends to acquire a more customer base.
  • More benefits than cost: It is essential to do a cost-benefit analysis when investing in something, especially for small businesses. Many merchants refrain from accepting credit card payments assuming the associated cost to be high. However, payment gateway charges are nominal for gateways like Zaakpay. Setting up is also extremely easy with simple integration techniques. In addition to payment gateway services that can be integrated directly into the business’s website, there are also payment links. A payment link is a URL that can be shared with the customer over any instant messaging service like WhatsApp and more. It gets redirected to a payment gateway. It enables small businesses without a website also to accept credit card payments and reap its benefits.


Businesses need to adapt to the changing needs of the market and the customers to remain strong in the race of making profits. With more customers shifting to online payment and relying on credit cards, businesses that join the bandwagon are sure to generate decent revenues. Credit card payments help merchants reduce the time and costs when accepting online payments. Since there are added benefits for the customer, credit card payments are preferred over other mediums, making it a must-have payment option for businesses.

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