Summary: Small businesses continue to rely on cash-only purchases in today’s plastic-heavy consumer base.
As common as cash today, so are credit and debit cards. Nearly everyone in the United States has one in their wallet. But, according to a variety of sources, over half of the nation’s small businesses do not accept credit cards. This article will dive into the scope of how processing credit cards online can play a role in a business owner’s decision into whether or not he or she wants to accept cards.
Over 60 percent of all transactions made in businesses are done via plastic – debit, credit or gift cards. Now, 60 percent is a large number, especially when you consider how much people are spending on a daily basis – talk about a lot of sales businesses are missing out on.
Technology has a lot to do with why businesses are converting to credit card transactions. Remember when credit cards were only accepted through complicated machinery with dialup lines? Many companies, and even merchant account providers like Charge.com, are making it relatively affordable to for business owners in this day and age.
Business Owners Don’t Want the Fees
So the real question is why are merchants refusing to accept credit cards? You can argue that there are a variety of fees associated with accepting credit cards, but the substantial number of consumers using credit cards is too much to pass on. Again, this does depend on the provider the business owner decides to sign a contract with. It’s important to note that each provider operates differently. This means fees vary based on the business as well as how trustworthy the business owner is – think high-risk.
Another survey found that over 50 percent of small businesses are asked by their consumer base whether or not they accept credit cards. That’s a whopping number of inquiring clients – and potential losses if you count them walking right out of the store. This statistic just goes to show that many small businesses are missing out on potential revenue by not accepting credit cards. Yes, there are going to be fees, but the question is how much business are you going to lose by losing card-only clients? Plus, you have to consider the fact that these fees can also be offset by the income that’s brought in by your consumer base as well.
There are a variety of benefits to accepting both debit and credit cards. There are so many benefits that they outweigh the cons by a landslide. When people are given payment options aside from cash, they’re more likely to make impulse purchase and spend more on a product or service – which in turn helps your business grow.