Can Credit, Debit Cards Help Boost Revenue?

By PlanetLaundry staff | Jan 25, 2012

Despite a rather widespread industry buzz surrounding credit and debit card acceptance, some self-service laundry owners continue to avoid considering the possibility of accepting credit/debit card payments at their stores.

Research suggests that often it is the cost associated with accepting cards using Chip and PIN machines that causes trepidation among many small-business entrepreneurs. These operators believe that the operational costs outweigh the immediate benefits to the business.

However, there can be some big advantages to including credit and debit cards in your payment options:

Competitive advantage. In the current economic climate, it’s essential to remain competitive. Self-service laundries, especially new stores, can have a particularly tough task of building a strong customer base without a known brand behind them – and, therefore, must offer the same flexibility and options as their competitors.

Who are your main competitors? Accepting cards will definitely give you an edge if the other stores in your marketplace accept only cash. And, if you are competing against larger, more established stores (or industrial laundries, with regard to commercial accounts), it is essential to offer all possible methods of payment, because your top competitors are likely already offering their customers the ability to pay via credit and debit cards... or they’re seriously thinking about it.

Greater flexibility for your customers. Todays’ laundry customers, like all “shoppers,” expect their buying experience to be as convenient as possible; so, laundry owners, like all “merchants,” must do their utmost to be flexible in all aspects of their businesses. Clearly, this applies to the way that they allow customers to pay for their services.

If a customer doesn’t have the cash available, he or she has come to expect to be offered an alternative payment method. If you will not provide this alternative, that customer very likely will be lost (maybe for good) to a competitor that accommodates his or her payment needs.

Opportunity to upsell. Customers may come into your store with one type of “purchase” in mind, but then decide to make an impulse purchase while at the laundromat. This can include using your larger, more expensive washers or dryers; paying more for hot water or an extra rinse cycle; or taking advantage of your wash-dry-fold or comforter cleaning services.

However, if they have only enough cash to make their initial purchase, this upsell opportunity will be lost.

With the ability to make purchases using their credit or debit cards, your customers can spend more freely, rather than be limited by the cash in their pockets.

Easier collections and faster reconciliations. Allowing customers to make purchases with their credit or debit card means that there are less quarters in your machines and less cash in your cash register at the end of the day – making collections and cash register reconciliations faster and easier. This also means that there is less room for human error, as the calculations are done by the terminal or your point-of-sale system.

Improved security. Simply put… accepting card payments means less cash on-site, which in turn keeps your hard-earned money safe from theft.