If you mention credit card processing, you’ll often elicit groans and possible rage from merchants. It’s one of the most loathed businesses with a sordid reputation that puts many a business owner in a bad mood.
However, as much as it’s disliked, credit card processing is a vital and important service that all businesses need to grow.
We’re going to attempt the impossible, and try and get you to see the value in credit card processing services.
Why you shouldn’t hate credit card processing.
In today’s world, it’s nearly impossible to run a business and not take credit cards. Our office in Fargo, ND is a big city, surrounded by lots of small towns with mom and pop stores. Almost all of them take credit cards.
Credit and debit cards are a widely accepted way to pay for purchases. All banks supply at least one or even several kinds of credit/debit cards. In fact, it’s becoming common place to not carry cash and solely use credit/debit cards.
Since credit cards are considered the choice way to take payments, why do so many merchants hate messing with the payment processing industry?
The simple answer is because it costs business owners money and that alone is a big enough turn-off.
In addition to paying money, many merchants hate how confusing their processing statements are at the end of the month. Reading their statements is similar to trying to read tax codes, leaving the person wondering if they’re getting a fair rate or overpaying.
With all of that information, it’s easier to see the main merchants dislike credit card processing. Not to mention, all of the shady tactics that come along with the industry.
A compelling challenge for credit card processing.
While you may be tempted to dwell on the small percent of money you’ll spend on the service, the truth is you lose more money by not accepting them.
By not accepting credit cards, you essentially cut off a large chunk of money from potential customers by making it difficult for them to spend money at your store. By holding onto every bit of money, you end up hurting your business.
As we established earlier, most people do not carry cash with them anymore.
According to Bankrate, when they conducted interviews to see how many cash Americans carry around on a daily basis, and here’s what they found:
- More than two-thirds of consumers carry $50 or less on a regular basis.
- About 9 percent of those surveyed say they don’t carry any cash at all.
- Six percent of those making $75,000 or more carry more than $250 in cash, compared with 2 percent of the overall population.
- The amount of cash people carry with them is fairly consistent across different age groups.
- Women tend to carry less than men. Seventy-seven percent of women carry $50 or less on a daily basis, compared with 61 percent of men.
- Who carries large amounts of cash anymore or wants to pay a $3-$5 ATM fee?
It may come at an expense to your business, but some customers will not want to shop at your business if you do not accept credit cards. Either they’ll completely avoid your business, or they’ll spend far less money.
The benefits definitely outweigh the disadvantages. In spite of the problems, credit card processing can actually help your business succeed with growing, and earn you additional money.
Want to take payments smarter?
Read about the success these merchants had with their credit card processing.