Perceived Barriers to Accepting Credit Cards

September 5, 2013

Credit and debit cards have become nearly universal accessories in modern life. The great majority of Americans now use these cards to expedite and simplify their financial activities. According to the industry analysts at Community Merchants USA, a mere 27% of all POS transactions are cash transactions. In spite of this, only 45%of U.S small businesses currently accept credit cards. Modern companies have many reasons for not accepting credit. For many organizations, this state of affairs is the result of careful reflection. However, it is safe to say that most of these companies are limiting themselves in an ill-advised manner. In most cases, the potential benefits of modernization outweigh any disincentives. Though accepting credit cards can introduce new hassles and complexities, the public responds warmly to greater convenience and choice.

Many merchants who do not accept credit cards cite worries about high transaction fees. This caution is an understandable by-product of the cost-cutting savvy that typifies small business ownership. But even though the reticence is well-intentioned, the bigger picture of credit card processing is that the consumers look to use the most convenient payment means possible — so plastic trumps cash for a bulk of any business’ customer base. There are profits to be reaped by accepting credit cards and a company like Host Merchant Services has a processing solution designed to allow even the cautious business owner the ability to accept credit cards easily and cost effectively.

Break the barriers of accepting credit cards

Lack of information may well be the biggest barrier to credit card acceptance. Well-settled in established habits, many merchants do not realize that developments in merchant services have driven down costs for many businesses. Passed by the U.S Congress in 2011, the Durbin Amendment capped and lowered debit transaction fees for a large cross-section of companies. The amendment also affirmed the rights of business owners to set minimum transaction limits for credit card users. Since 2012, MasterCard and Visa have allowed merchants to add surcharges to credit card transactions.

From a public relations standpoint, these tactics have definite downsides. However if they permit merchants to accept more payment methods, these measures can have outstanding effects on profitability.

Transaction fees aren’t the only barriers to wider credit card acceptance. Basing their perceptions on old information, some small business owners believe they would have to pay excessive monthly fees or make long-term commitments. Others remember a time when credit card processing equipment was dauntingly complex and expensive to rent. Fortunately, Host Merchant Services provides low-cost, hassle-free payment processing, along with free supplies and some of the most user-friendly and cutting edge processing terminals. As an industry leader, we use customer service, innovation, and technology to remove nearly all barriers to accepting credit transactions. Host Merchant Services is fully committed to supporting our merchants and making it worthwhile and profitable to accept credit cards.

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