Approximately 43% of Americans prefer to use their debit cards and 35% like credit cards better. What about cash? A mere 9% opted for cash and this study was done two years ago. It’s likely even less now. But believe it or not, there are still small businesses that do not accept cards. I went to drop off my dry cleaning the other day from a place my friend recommended and they only accepted cash and it was payment up front so I literally couldn’t get my clothes cleaned because I didn’t have any cash on me. The problem with that method is, when I run errands, I usually have two small children with me. That means that I’m not making more stops than I need to. I’d rather find a different cleaners that accepts card so I don’t have to run an extra errand every time I need clothes dry cleaned. So, they lost my business before they even got it. And there are probably plenty of people like me. Sure, there are credit card payment processing regulations that are a hassle but it’s plenty worth the trouble. If you are one of those businesses that does not want to invest in credit card payment solutions, here are a few things that are going to happen.
Lack of Loyalty
As mentioned, if there is another business anywhere around you that offers the same service or products that you do, people will end up going there. It is difficult to be loyal to a place that only accepts cash because you feel like they aren’t being loyal to you. It seems like the business is only loyal to you on their terms; they aren’t going out of their way for you. Without credit card payment processing services, a company is basically saying “We don’t really need you.” That can be disheartening to a customer who wants to feel appreciated. This can only lead to the customer finding somewhere else to take their money.
Suspicion of Launderers
Some of the most popular credit card processing companies are actually very reasonable about their fees. This is quite a known fact, even among people that aren’t business owners, so when they find a store that simply refuses to take card, it can cause the potential customer base to wonder if there is something unscrupulous going on behind the scenes. Is that dry cleaner’s a front for a major drug ring? Probably not. But, it does seem odd that they don’t want a paper trail. They also hand write their receipts which is common for places that don’t accept cards. Nothing is digital- WHY? Can they be saving that much money by running their business this way? Or is it so they can disappear quickly if needed? It’s hard to believe that it’s because credit card payment processing regulations are too strict. What about all the other businesses that accept cards?
Increase in Annoyance
Picture the scenario: a frazzled mom of two kids walks into the dry cleaner’s. The kids are crying for lunch and a nap but they’ve been running around all morning trying to get everything done. There have been too many mishaps to count during the day but this is the last thing to do. After dragging in the boys and the clothes in three different trips to the car and back with no help, she leans on the counter, out of breath, waiting for her drop off receipt, only to be given the total and a rude finger pointing to the ‘cash only. payment required at drop off’ sign and be told it’s because there are too many credit card payment processing regulations. It’s probably better if you don’t know what happened next, but let’s just say- annoyed customers do not make for good business. Especially when there are other customers there.
Credit card payment processing regulations are real and they are a pain but if you can gain business, keep customers happy and be thought of as legitimate, it’s worth the obstacles. If it’s about money, your credit card machines will pay for themselves in no time because of all the business that you will keep by accepting cards.