According to a recent report from Intuit Small Business, an astounding 55 percent, or 14.85 million, of small businesses in the U.S. do not accept credit cards. It’s estimated that these businesses miss out on a potential 100 billion dollars in annual sales. These are amazing statistics that resonate both as an industry professional and a consumer.
Consumers often select merchants specifically because they accept credit cards. It’s estimated by Intuit that credit card users also spend up to 50 percent more than their cash using counterparts.
As a small business owner, credit card acceptance provides opportunity to attract more customers and increase sales from both new and existing customers. Why would a small business not accept credit cards?
Historically, small businesses have shied away due to high interchange fees, hardware costs and the process of establishing and managing a merchant account. Today, there are a variety of options available to small businesses that remove the headaches, control expenses and provide massive growth opportunity.
New mobile payment acceptance technologies like PayPal’s Here, Square and Intuit’s GoPayment offer convenient options that are financially efficient for small businesses that have small monthly averages for credit card transactions. For those with higher monthly average transaction amounts and a need for enhanced support and chargeback protection, payment-processing companies offer a myriad of payment solutions and customer engagement options (gift, loyalty and couponing) for brick and mortar, mobile and online commerce.
As new payment types (NFC, EMV and mobile wallets) and integrated mobile payment and loyalty solutions like LevelUp grow in terms of consumer adoption, merchants of all sizes will be faced with more pressure to not only accept credit cards, but also new payment types. Don’t be left behind, adopt today and prepare for the future of payments.