Building Your Business Operations & Success 6 Benefits for Businesses That Accept Credit Cards By Marco Carbajo Marco Carbajo Twitter Marco Carbajo is a credit specialist and owner of Business Credit Insiders Circle. His expertise includes guiding businesses and start-ups in securing funding without putting personal assets at risk. He previously worked as a credit analyst for Credit Education Services. learn about our editorial policies Updated on September 13, 2022 Fact checked by Taylor Tompkins Fact checked by Taylor Tompkins Twitter Website Taylor Tompkins has worked for more than a decade as a journalist covering business, finance, and the economy. She has logged thousands of hours interviewing experts, analyzing data, and writing articles to help readers understand economic forces. She joined The Balance in 2022 as its Economics Editor. learn about our editorial policies In This Article View All In This Article Credit Cards Legitimize the Business Accepting Credit Cards Can Boost Sales Cards Can Eliminate the Risk of Getting Bad Checks Credit Card Payments Can Improve Your Business' Cash Flow Put Your Business On a Level Playing Field With Competitors By Accepting Credit Cards Credit Cards Are Reasonably Inexpensive to a Business FAQ Photo: Oliver Rossi / Getty Images Considering that credit cards are increasingly becoming the chief mode of payment, you may be on the losing end if you are running a business that does not accept credit card transactions. Cash only accounts for 20% of all transactions and the average person only keeps $67 on them at any given time. When asked, 32% of respondents to a Federal Reserve Bank of San Francisco survey said they prefer to use a credit card as their primary form of payment. Key Takeaways Credit cards are often the preferred payment for customers, so cash-only businesses should consider accepting cards.Accepting credit cards can help the company's financials by maintaining a good cash flow and boosting sales. Credit cards acceptance can also help legitimize a business and keep a competitive edge. You may be considering accepting credit cards as a form of payment for your business. No matter the type of business you are involved in, accepting credit cards can increase sales and generally produce positive results for the business. Below are eight benefits of accepting credit cards as a payment option: Credit Cards Legitimize the Business Taking credit card payments will establish your business in the industry as legitimate. Displaying the logos of the credit cards you accept on your website or cash register will grab the cardholder's attention and make them more likely to trust your business. Providing both current and prospective clients with more options in terms of credit card payments will please them and make them satisfied with your business, which in essence will improve your placement in the market. Therefore, accepting credit cards will increase your business' level of legitimacy and instill rapport and trust with your customers. Accepting Credit Cards Can Boost Sales Cash-only operations will hinder business sales and potentially make the business lose hundreds of prospective customers. However, when a business accepts credit card payments, its potential customer base expands massively as more customers are attracted, thereby likely boosting sales. Note Keep in mind that most people prefer using credit cards because it is safe and convenient. Cards Can Eliminate the Risk of Getting Bad Checks Accepting credit card payments practically eliminates any risk of having to deal with matters that revolve around receiving a bad or bounced check. You will not have to risk a huge chunk of your money on bad checks or wasting time having to track down the customer to properly pay for the goods or services. Credit Card Payments Can Improve Your Business' Cash Flow In most cases, credit card transactions are electronically processed and can be settled quickly. The proceeds are deposited in your business bank account by the processor within a matter of days. This will not only increase and improve your cash flow but will eliminate issues with checks, billing, and invoice collection from your customers. Put Your Business On a Level Playing Field With Competitors By Accepting Credit Cards It is true that a business may lag behind the competition if it does not accept credit card payments, especially when competitors are. To survive, a business should accept credit card payments, which will obviously bring it to a level playing field with other competitors in the market. Credit Cards Are Reasonably Inexpensive to a Business Many businesses, especially small businesses, may be worried about incorporating credit card payments thinking that they are expensive, which is not true. Note Credit card processing has today become a very competitive industry with many processors offering merchant service packages that are likely to work within any reasonable business budget. The credit card rates are so low that even the smallest business can afford to accept them. In any case, if your business is yet to accept credit card payments, these are just some of the reasons why you should consider incorporating it into your business. It is a great way of increasing sales and is important to other components of the business. FAQ How do I accept credit cards at my small business? Small businesses must be approved for a merchant account so they can offer their customers the opportunity to pay with credit and debit cards. Read more about that process here. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Federal Reserve Bank of San Francisco. "2022 Findings from the Diary of Consumer Payment Choice." NFIB. "Top 10 Benefits of Accepting Credit Cards." Due. "Why Accepting Credit Cards Can Increase Your Profitability."