Most of the businesses I visit accept credit cards. However, once in a while I buy services from a business that does not accept credit cards. It’s not only a pain to use cash, but from time to time those businesses who DO NOT accept credit cards lose a customer. Intuit GoPayment estimates that businesses who do not accept credit cards lose $7,000 a year in sales.
According to Intuit’s survey, 55 percent of the nation’s 27 million small businesses do not accept credit cards. Those nearly 15 million U.S. small businesses potentially miss out on $100 billion in sales annually.
GoPayment (which provides mobile credit card processing) recently launched a national video sweepstakes to “Get Business Growing” with chances to win up to $10,000. The sweepstakes shows how easy it is to take credit card payments on the spot via mobile devices – anytime, anywhere.
Small businesses also face a cash flow chokehold, waiting for an average of $5,140 per month in overdue payments. That’s a potential $1.7 trillion collective cash flow strain annually across all small businesses in the U.S.
“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 process was inefficient and stressful for both me and my clients.”
Accepting credit cards on the spot helps alleviate this cash flow strain. Small businesses that accept plastic make more sales and get paid quicker than those that don’t. The survey found that 83 percent of businesses that accept credit cards make more sales, with 52 percent making at least $1,000 more per month and 18 percent making at least $20,000 more per month. In addition, 74 percent of those surveyed said they get paid faster and reduce bad debt by accepting credit cards.