We’re roughly two weeks out from the Oct. 1 deadline that will see the new interchange, or “swipe”, fee regulation go into effect, and we’re starting to see activity in regards to what is being said - good, bad and indifferent - about this change.
Merchant Warehouse ran across this post from Jason Keith on Boston.com. As Jason notes, while the “Cash is King” philosophy is still prevalent amongst many small business owners, with new legislation and the increased options for accepting credit cards in today’s market, many small businesses are finding that the rewards of accepting credit cards far outweigh any perceived drawbacks.
We here at Merchant Warehouse could not agree more, and are excited about the opportunity to work with thousands of small businesses every day that have increased their monthly profits by accepting credit cards. As Jason points out, the evidence continues to mount that consumers are only increasing their use of credit cards, and those “cash only” businesses will see a growing risk of losing out on sales and opportunities.
Technology and innovation have made great strides in ensuring credit and debit card purchases are safe and secure for consumers and merchants alike, and within the next few years we’ll start seeing an uptick in the ability for people to pay with the swipe of their cell phone past a POS terminal. Mobile payments are gaining momentum and could trump cash and cards as the preferred payment method of choice.
We think small businesses should educate themselves about the options that are available, and then decide which method best suits their business model. Cash will always be welcome, but while plastic and mobile payments may not be right for one merchant, they are an increasingly valuable decision for many small businesses.
Sure, it’s wise for merchants to maximize revenue streams by avoiding what they may consider unnecessary fees, but imposing limits on the payment options customers can use will hinder many merchants’ ability to drive profits in the long run.