The True Cost of Cash

Believe it or not, there are still some restaurants, retail businesses, and other types of businesses who still insist on cash.

Yes. Most retail stores now accept credit cards. There are still a considerable number of restaurants, small retail stores, lawn services, plumbers, electricians and other businesses that refuse to accept credit cards.

There are lots of good reasons to not accept credit cards.

Accepting credit cards make it much easier for the IRS and local tax agencies to estimate your real sales.

The 2% fee that your credit card processor may charges could be a significant amount of money. (Fees depend on your processor and volume.)

Credit cards adds to your paperwork.

There is a risk of fraud by your employees.

Some customers insist on using a credit card for small purchases which may be adding to your labor costs.

Problems related to stolen credit cards can be costly.

Unhappy customers can protest their credit card payments.

It’s time to encourage the use of credit cards in your business.

If you are not currently accepting credit cards, offering your customers this option can increase your sales by as much as 70%.

Placing restrictions on credit card us is probably against the law or your merchant credit card agreements. Yes. Taking a credit card for the purchase of a candy bar may be somewhat of an annoyance. However, allowing non-restricted use of credit cards is likely to increase the size of any purchase made within your business.

People don’t carry much cash anymore. They expect to use a credit card.

That 2% or so credit card processor fee that you are paying will more than be made up by the profits from your increased sales.

If you want more sales, place your credit card emblems all over your business. Let people know that credit card usage is welcome.

Customers are willing to pay a little bit more if they know that you accept credit cards. Imagine owning a little hogt dog stand or mobile food truck. Start accepting credit cards and you will see your sales soar.

College, hospital and office cafeterias are able to increase prices by enough to pay for any additional credit card fees that you must pay.

Retail stores and restaurants find it easier to increase prices when necessary if they accept credit cards. Those paying with cash are less willing to pay more.

Don’t add a fee for credit card use. It discourages your customers from using their credit cards and will result in smaller sales.

Don’t worry about theft. Well, don’t worry so much about theft or credit card fraud. It is an annoyance, but an inconsequential cost when compared to the additional revenues created from accepting credit cards.

Don’t worry about the IRS and taxes. It’s better to pay all the taxes that you owe. You can sleep better and benefit from the extra revenues that your credit card users will give you. Get a good accountant to help you find more legally deductible expenses that you may have missed. Hiding cash is easy. Hiding credit card revenue is not. Let’s go back to that hot dog stand. Is it better to keep your cash and hide it under your mattress or increase your revenues by 70% by accepting credit cards?

To read more go to:

Benefits of Accepting Credit Cards

Increase your Sales By Accepting Credit Cards

Credit Card Fraud

The True Cost of Cash: Report Argues Why Accepting Electronic Payment is Best for All Businesses

That being said…I saw this friendly sign in front of a pizza/restaurant today:

We do not accept

American Express

$25 Minimum for Credit

Cards

Thank you!

 

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