Credit and debit cards are nearly as common as cash. Nearly everyone in the UK has at least one in their wallet, including business owners. But not all small businesses accept credit cards or have a credit card machine.
According to a recent research nearly 66% of all point-of-sales transactions are done with plastic – credit or debit cards. That is a lot of sales for millions of businesses to miss out on. Only 25% of purchases are made with cash. In fact, they estimate that cash sales will drop to only 20% by 2017.
Technology is making it easier for any business to accept and manage credit card transactions. Gone are the days of complicated machinery via dedicated dial-up lines. A PDQ machine makes it simple and relatively affordable to accept cards.
So why do many merchants refuse to accept cards? The common reason is the fees for merchant services , but with more and more sales being added to the economy between 2008 and 2012 through credit card usage, most merchants are starting to pay attention to accepting credit cards and therefore have a credit card machine .
I don’t remember it being so accessible and so easy to add point of sales equipment to your business. Granted, this is not high-end point of sales equipment but a simple credit card machine, nonetheless it is easier and easier for any merchant to add technology to their business.
In another survey conducted by a company which offers an online payment mechanism to accept credit cards, it found that 58% of small businesses are regularly asked by their customers to accept credit cards. So that tells me that many are still missing out on potential revenue by not having a credit card machine. Sure, there are fees, but you can account for it in your pricing.
The argument I hear from most merchants is that it is too expensive to accept credit cards. But I have been in stores, and you probably have as well, that have a sign on the counter that says X amount will be added to all credit card machine transactions. Or, that there is a minimum purchase requirement. I’m not sure if that is a legitimate way to process the transaction, but I see it often enough. Customers seem to understand that the cost of processing plastic is greater than cash and most seem willing to accept this cost from smaller merchants.
The benefits of accepting credit and debit cards far outweigh the cost. The various studies show that when people are given more payment options (beyond cash); they are more likely to make impulse purchases, join loyalty programmes, and spend more per purchase – and that can only help your business to grow.
To find out the whys, hows and how much it could cost you just click here .test