Thursday, August 14, 2014

Small Biz Talk: Pros vs. Cons of Accepting Credit Cards

Advances in technology have made the the use of credit and debit cards even more important when it comes to small business commerce. If you are considering accepting credit or debit cards as a form of payment for your business, it is important to take a real look at the pros and cons first:

  • Debit and credit cards have quickly become the main form of payment. Behavioral studies have shown that consumers are more likely to spend at your establishment because of the convenience of not having to carry cash. 
  • It is also convenient for the business owner to accept card payment. Data from these purchases can be used as an effective accounting/inventory tool with the right software rather than having to record each transaction by hand.

  • Despite the laws and security measures put in place to protect business owners, card payments can come with an increased risk of fraud. Scammers that manage to get over on business owners can leave them responsible for all the loss of revenue. 
  • Accepting card payment will also result in small processing fees for your business. If your business accepts card payments for small purchases it could result in more fees than it is worth.
So, What Should You Do?
Small businesses accepting credit and debit cards as a form of payment that have a huge number of transactions can definitely benefit from this expansion. This decision will initially cost your business money and take a little more time for business operations but the payoff is definitely worth it!

What suggestions do you have for owners accepting card payments? 

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