Pros And Cons Of Credit And Debit Card Processing

Today's small business owner has many decisions to make in this fast pace world

. When it comes to various budgets for advertising, inventory, travel and more, every decision counts. One major issue of concern these days is credit card processing. The question of whether or not a small business owner should or should not allow credit card transactions is one that is difficult to answer. There are various pros and cons to making either choice which is why it is important to decide if it makes sense for any specific company and its specific needs.

The pros of accepting credit and debit card processing are relatively obvious. Firstly, cash is a rarity these days. The majority of consumers do not even carry cash with them. The reason for this is because it is inconvenient and unsafe. It's easy to lose a $50 bill but a credit card or debit card is usually hard to misplace. Also, if a credit or debit card is stolen, it can be canceled. If a $50 bill is stolen, it's gone forever. Customers who do not have cash on them will be forced to take their business elsewhere. It is virtually impossible for a business owner to know how much business he or she is losing if they do not accept credit and debit card processing.

Another reason it is a great idea to accept credit or debit cards is the fact that it saves time. The time it takes for both the consumer and the cashier to count on the exact change could be the time it takes three customers to swipe a card and be on their way. Time is money these days and it's a waste of money to count out change. Safety is another reason many chose to accept credit and debit cards. Handling only cash means that there is a large bank role at the end of every business day. Accepting credit transactions is a safer way to handle the company's income.

The cons of credit cards include merchant fees and accounting headaches. Taking cash does not involve any fees whatsoever and is therefore relatively straightforward. Those who process credit cards, though, have to pay merchant fees on each and every transaction. That is a percentage of the profits that will never be seen from the company in question ever again. Accounting, also, will have to be handled differently as well. There will be separate accounting for cash than from credit cards which can take more time after closing to tally up the numbers. Indeed, there are pros and cons to both ways to go. The important thing is to take into consideration which option best fits the company in question and go with that.

by: Art Gib

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