Credit card acceptance crucial for U.S. businesses
May 31, 2013

According to a new study, it is essential for small- and medium-sized businesses to accept credit card payments at the point of sale. Not doing so can cost an estimated $100 billion annually in lost sales across the country. Adopting electronic payment systems continues to be important for companies to drive sales and increase customer satisfaction. SMBs that do not accept plastic are missing out on a significant amount of business and should consider offering customers multiple purchasing options.

Taking plastic increases revenue 
Recent research found approximately 27 million SMBs do not offer customers the option to pay with plastic at the POS. As a result, nearly 15 million companies miss out on more than $100 billion every year for not accepting debit and credit cards. The study estimates each business that does not offer customers multiple purchasing platforms loses out on $7,000 in sales every year. This is a conservative projection, and sales losses caused by not accepting credit cards may start to increase as more consumers reach for plastic at the POS. 

The study found only 83 percent of SMBs that offer many purchasing options say they make more sales. Seventy-four percent cited they have found consumers buy more goods when they use plastic. Customers who purchase products with debit and credit cards spend almost 50 percent more than their cash-carrying counterparts. 

The benefits of having multiple purchasing platforms 
SMBs continue to see many advantages associated with adopting integrated payment solutions. Taking debit and credit cards offers faster reimbursement over other payment methods, posting the funds right to the SMB's bank account.

Faster payments are not the only advantage of accepting plastic, as it helps companies increase customer satisfaction and retention. Consumers continue to use their debit or credit cards at the POS because plastic is more financially secure than cash. Not accepting plastic may lead consumers to walk out of the store, leading to lower sales and lost customers. SMBs can increase their revenue and consumer retention by employing secure payment processing, such as that provided by Sage Payment Solutions, to ensure their customers have best possible POS experience. 

Nexus: G-WEBCD2