As a business owner and educator, you most likely started your business because you’re motivated to educate the next generation of leaders. You turned your passion into a business — and it’s an amazing accomplishment.
However, while entrepreneurship is a great thing, it also comes with many decisions and responsibilities. We all know the saying — to make money, you have to spend money. But what about...accepting money?
One decision business owners face whether or not to accept credit card payments. To some, it is one more expense that cuts into their bottom line. If you’re weighing the pros and cons of accepting credit cards, keep reading to learn more about what your small business needs to know about the cash vs. credit card debate. And if you are looking for information on flexible payment options and why they are good for business, check out our article.
Cash methods in business
When people think about paying in cash, they think of paper currency and coins. Cash payments also include paying digitally using non-traditional payment methods.
Apps like PayPal, CashApp, and Venmo are also considered cash payments. Also, using a paper check, electronic payment, or debit card will classify as a cash transaction.
In essence, a cash transaction is an immediate exchange of funds from a consumer to a business. This is why it is more convenient for businesses to accept cash payments.
Do you need to accept credit cards?
Accepting credit cards is frowned upon by some businesses, especially those just starting out. One of the most significant downfalls of credit card payments is the fees associated with each transaction.
It's understandable if you're focused on cutting costs. You also have to consider the amount of lost revenue when a customer only has a credit card.
The fees associated with a credit card transaction can get passed off to the consumer. Some businesses add a surcharge to recoup fees. Other businesses are less discreet. They pass the cost off by adding a few cents to the cost of all merchandise.
If you choose to accept credit card payments, shop around for the best rates and service fees.
Surviving in the digital commerce age
As we move deeper into a digital commerce market, businesses must inevitably accept credit card payments. The banking industry is making it easier for people to pay with credit and debit cards.
There may come a time when physical cash becomes obsolete.
Whether you're a brick-and-mortar business or an online business, you can benefit from online payments. Most restaurants are now offering online ordering. Customers can place their orders via a website or app and pay for the order.
Digital sites in all industries allow customers to store their credit card and banking information. It speeds up the buying process and allows the business to focus on service and quality.
Give your customers payment options
Being a small business has its challenges. Complicating payment methods doesn't need to be one of them. Give consumers the flexibility to pay using their preferred method.
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