Starting your own business can be daunting. Endless to-do lists, financial advice and business plans surround entrepreneurs searching to build their own empire of sorts. One crucial decision in the operational planning stage is whether to create a merchant account that accepts credit cards. Small businesses are notorious in not accepting plastic forms of payment. But why? Mainly due to involved fees, numerous small businesses see credit card acceptance as a financial burden. However, a substantial shift may occur in the near future, as more consumers are less likely to purchase products with cash, and numerous services offer effective small business solutions.
Recent statistics show consumer payment preferences are shifting already. Intuit reports 55% of America’s 27 million small businesses will not accept credit card payments. However, Community Merchants USA discovered plastic is responsible for 66% of all POS (Point of Sale) transactions. Only accounting for 27% of nationwide purchases, cash sales are expected to dip below 24% by 2017 (Source: Forbes.com). Aside from the statistical writing on the wall, the advantages of accepting credit cards are increasing. Small businesses can benefit from additional growth through the increased likelihood of spontaneous purchases and probable upticks in loyalty program accounts. Progressive technology and easy merchant account setup has simplified credit card processing, so small business transactions are fast, accurate and secure. With practices such as mobile bill pay and online shopping becoming more of an industry standard, it is unlikely small business credit card acceptance will not join this financial bandwagon in the near future.