While many small businesses may opt to not accept credit cards because of long processing times, a recent Intuit GoPayment survey found the 15 million U.S. small businesses that do not accept credit cards are missing out on roughly $100 billion in annual sales.
According to the survey, 83 percent of businesses that accept credit cards make more sales that those that do not, with 18 percent of businesses claiming to be bringing in an additional $20,000 in sales over the span of a month due to card payments.
“Getting paid in a timely manner can be a huge pain for small businesses,” said Cynthia Okimoto, owner of New York Dog Nanny. “It used to be that if clients didn’t have cash handy, they’d pay by check. Depending on the situation, the payment wouldn’t make it to my business bank account for days or even weeks at times.”
The situation described by Okimoto can be alleviated by new mobile technology that facilitates on-the-spot payment via cards.
In an effort to help small businesses understand the benefits of accepting credit cards, GoPayment recently announced it has launched a video sweepstakes that is asking small businesses to demonstrate how accepting credit card payments have helped spur growth.
After seeing how accepting credit cards can impact small businesses, it may be time many to start allowing them as a method of payment. Businesses that are concerned with late payments due to credit cards should invest in business insurance policies to protect against this and other risks associated with card payments.
