Business Management 101: Pros And Cons Of Accepting Credit Cards

If you are operating a merchandise type of business, you must already be accepting different forms of payment. While some people prefer to pay in cash, there are others who pay in the form of a debit or credit card. If your business accepts credit card payments, then your customers are free to explore and choose from a wide array of options for as long as the purchase does not exceed their credit limit. With them using a credit card, however, be prepared for some extra bookkeeping work. In addition to that, you will need to factor in credit card processing rates to your overhead.

In this article, we will discuss a few of the more relevant pros and cons of accepting credit card payments. Accepting a credit card is essentially good as customers can purchase more from your shop, but remember that it can be burdensome – extra work is definitely a must. Hence, you will need to weigh your pros and cons – if you are considering accepting credit card as a form of payment, do you have enough time and resources on your hand? Yes, it is necessary to be asking these questions.

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(1) Everyone Now Uses A Card

A debit or credit card is the most used form of payment today. In fact, in the USA, only 27% of the population pays with cash – and this number is expected to lessen over the years. In essence, people prefer to pay with cards as it is easier – one swipe, sign, and you are off.

(2) Helps Increase Sales

Anything that boosts sales is good, right? Today, people do not carry a large amount of cash with them as it is not safe anymore. For that reason, they would much rather prefer to pay with a card.

For example, if you are a shop that sells gadgets, then you must accept a credit card form of payment as it allows your customer to make a big purchase without having to carry wads of cash around. If you do not accept credit cards, then it is most likely that you will lose the sale.

(3) Makes Your Business Competitive

If your business accepts a credit card payment, then you know you are competing with the big guns out there. If you give your customers the option to pay on credit, then they will not take into consideration other shops anymore (if this is solely based on form of payment alone).


(1) Extra Fees

Who wants to pay unnecessarily? With accepting a credit card as a form of payment, however, you will need to bear with paying the following fees.

To be able to process the credit card, you will need to purchase the necessary equipment, pay the setup fees to be able to use a payment gateway, and pay for the credit card processing rates. Yes, these fees are not extreme, but overtime, it can eat up your profit – most especially if your business is small.

(2) All That Extra Work

As mentioned above, accepting credit card would mean additional work. First and foremost, you will need to think of a way in which you can keep track of all credit card payments, credit card processing rates, and other fees related to merchant accounts and payment gateway.

More importantly, you will need to improve on and master your bookkeeping skills – if you do not know how to do bookkeeping, then you may want to consider hiring someone to help you out.

(3) Security Issues

There could be problems with fraud and security with credit card payments. However, with the implementation of the EMV chip for credit cards, this is less likely to take place unless your credit card is stolen. If your card is stolen, you need to report it to your bank immediately before someone swipes the card and copies your signature.

So there you have it – just a few of the pros and cons of accepting credit card payments. Remember to take all these into consideration – while offering a credit card payment uplifts your business in many ways, doing it prematurely can cause a lot of trouble. Make sure to think it through – there is no need to rush. Go to for more tips. You can also go to if you want to know how to protect consumers from identity theft.

We help you weigh the pros and cons of accepting credit cards. Is it the best time to sign up with a card processor? Find out at

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