The most important aspect of any business is sales. In today’s market, only 27% of purchases are made with cash. This percentage is set to drop to 23% in 2017. Even though a large majority of sales are through credit cards as much as 55% of businesses do not accept credit cards (Forbes). Companies in the United States and Canada that do not accept credit cards are potentially losing out on billions of dollars in sales each year. So why are these companies choosing not to accept credit cards and potentially leaving billions of dollars to their competitors?
According to CreditCards.com processing fees, equipment costs and the additional time it takes to complete transactions are all reasons why some businesses are sticking to the cash only business model. However, as more businesses rely on their online stores to make sales and a growing number of Canadians are finding there is no need to carry cash; businesses in Canada and around the world will need to be able to accept credit cards or risk going out of business.
The trouble that business owners may face when looking to accept credit cards is that there are so many different mechanisms for accepting credit cards that it can be difficult for the average business owner to decide what will best work for their business. However, the main feature that business owners need to consider when looking into accepting credit cards is how much will the credit card processor take for each transaction. Some credit aggregate processors like PayPal might make it easy to set up an account, but they will take almost 3% of each sale plus $0.30. Depending on the type of business you own and the volume of sales you make each month you could pay a fraction of what companies like PayPal would charge you for using their service. Take the first step to growing your businesses in 2017 and find out how easy it can be to accept credit cards with your own low-cost merchant account.