Cash Only: How Not Accepting Credit Cards Could Be Hurting Your Business
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Cash Only: How Not Accepting Credit Cards Could Be Hurting Your Business

Have you ever had a great night out with friends or with a date at a restaurant and when it’s time to pay for the bill you get hit with the words “We don’t accept credit cards”or,

stop for some coffee before work to read a sign that says “Cash only?” Now you’re stuck searching for the least sketchy ATM or fishing through pockets and hoping you have a few dollar bills. In 2016 when almost every aspect of our lives have turned digital, this is something that still happens way too often.

According to 2013 article by TJ McCue for Forbes, “66 percent of all point-of-sales (POS) transactions are done with plastic – credit, debit, or gift cards. […] Only 27 percent of purchases are made with cash.” The reality is nowadays people tend to carry smaller amounts of cash, if they carry cash at all. Credit and debit cards tend to be the default payment method and even that is seeing some competition with things like Venmo, Bitcoin, and PayPal.

There are some benefits to cash including funds are available immediately and there’s a smaller chance of fraud. As a result, small business owners tend to be slow to the draw when it comes to credit card processing. Many cite the fees charged for using the service as being the top reason for sticking to cash. However, it’s been shown that the loss in business outweighs the money you think you’re saving by avoiding credit cards.

Cash only businesses risk having customers avoid purchases they would have otherwise made because they didn’t have enough cash on them. People are sometimes willing to sacrifice a bit of quality for convenience so while you may have the better quality product or service. Not offering different payment options will drive your customers into the arms of another company that does. While you may not want to mess with the system you believe works, consider your options.

To learn more about how Excel Capital Management can help your business start processing credit cards, visit our Solutions page or call 877-880-8086 to speak with one of our representatives.

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