As a small business owner, accepting credit cards is likely to be something you are contemplating. In a recent post by the mobile and online payment processors at PayAnywhere the most common advantages and disadvantages were discussed.
Pros
- Many consumers do not carry cash. This means they may want to make a purchase, but don’t if it requires them to run to an ATM for cash.
- Impulse purchases increase when less time and thought is put into the method of payment.
- Debt and credit card payment processing is fast and easy to set up.
- Electronic payment methods continue to evolve, making debt and credit cards the most common method of payment.
Cons
- There is undoubtedly and increased risk of fraud when it comes to debt and credit card payment processing. To minimize this risk ensure that you fully understand the precautions your payment processor takes—as well as the ones you need to consider in-house.
- Credit card processing fees can really add up. To cover these fees, many businesses increase the price of their products and services. You can also consider more affordable mobile only payment processors.
- You will need to invest more time in your bookkeeping and accounting when you add an additional payment method to your business.
Conclusion
In today’s electronically savvy world it is difficult to compete without debt and credit card payment processing. Some businesses experience an increase in overall business—as well as an increase in average transaction when they add credit cards to the mix. While time and attention must be invested to ensure that you partner with a responsible payment processor—it is worth the investment.