In the modern world, credit and debit cards have become usual methods of payment. Business owners lose out on revenue opportunities if they do not offer these options. Merchant accounts allow businesses to accept payment from debit and credit cards, and these accounts are an approved agreement between the merchant and the bank. According to data from Intuit, 55 percent of the 27 million small businesses within the United States currently do not accept credit cards. However, an infographic from Community Merchants USA shows that 66 percent of sales transactions are completed using credit cards.
With the high usage of credit cards, not accepting them means missing out on a considerable number of sales. Experts estimate that this trend will continue, and cash sales will drop to 23 percent in 2017. In the past, complicated machines oversaw transactions, which led to dedicated dial-up lines.
Most small businesses avoid credit card transactions because of the added fees attached to them. However, these costs depend on the chosen bank. Between 2008 and 2012, $127 billion was added to the economy. WePay conducted a survey that found 58 percent of small business owners have customers asking them if they accept credit cards. While the fees lead to a loss of revenue, entrepreneurs can factor that into the price. Various studies have shown that when consumers are given multiple payment options, it increases the chance that they will make impulse purchases.
As technology advances, adding a point of sale equipment will become easier. Walking into an office supplies store, there’s a kiosk that accepts both PayPal credit cards and Square credit cards. While the high-tech point of sale equipment may not be ubiquitous, simple credit card readers have grown in availability in recent years.
Multiple payment options assist with the growth of businesses because it gives them access to a larger paying market. Almost everyone in the United States has a credit card, and this includes business owners. People use them for their convenience. Adding a fee to cover the cost of the transaction will make credit cards more accessible. Most customers understand that the cost to process plastic is greater and are willing to accept the additional fee.