Your Cash-Only Policy Is Holding Your Small Business Back

cash only businesses make less money

In recent Intuit study shows a whopping 55% of American small businesses do not accept credit cards. Is your jaw on the floor? Ours was. We fact-checked that stats again and again to make sure the study wasn’t taken in 1997. “Intuit estimates that each business that does not accept plastic misses out on approximately $7,000 in sales annually, equating to approximately more than $100 billion in collective lost revenue. This missed opportunity represents a combination of new sales and sales that go to other businesses that accept credit cards.”

That’s more than half of you out there saying “no” to paying customers and either losing business or souring the customer experience, if only just a little bit. CNBC spoke with the owner of Joe Coffee, a chain of craft coffee shops in NYC. For ten years, it felt natural to be a cash-only business—it avoided significant processing fees and was in-line with their mom and pop reputation. However, owner Jonathan Rubenstein started to feel a shift. “We started reading our Yelp reviews—75 percent of the negative comments about Joe were about us not taking credit cards,” he said. “We were losing a lot of sales in terms of people not having cash and going to a competing coffee shop but also people spending less money who wouldn’t buy a $17 bag of coffee [beans] or a $75 grinder.”

Cash flow is vitally important to the health of a small business, and accepting credit cards can help alleviate cash flow strain as well. Small businesses that take credit cards get paid quicker and make more sales than businesses with a strict cash-only policy. 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.

Do you accept credit cards? Why or why not?

Leave a Comment

All Features Available During Your 30-Day Free Trial
All the tools you need to grow your business
PLAN DETAILS
STANDARD
Starting at $79/mo
PROFESSIONAL
Starting at $199/mo
ELITE
Starting at $399/mo
ENTERPRISE
Starting at $799/mo
Locations / Integrations
2
5
10
20
Users
2
5
10
20
Transactions Per Month
1-3,000
3,001-10,000
10,001-25,000
25,001-75,000
Products / Items / SKUs
Unlimited
Unlimited
Unlimited
Unlimited
Order History
3 Years
Unlimited
Unlimited
Unlimited
Reporting History
3 Years
Unlimited
Unlimited
Unlimited
Product Catalog Management
Catalog / Menu Management
SKU Creation
Lot Costs
Modifier Configuration
Pricing Calculator
Expiration Dates
Price Tag / Label Printing
Spreadsheet Bulk Upload
Average Costs
Inventory Management
Min / Max Levels
Low Stock Alerts
Stocktakes and Approvals
Basic Internal Transfers
Basic Purchase Orders
Modifiers Inventory Tracking
Kits / Bundles
Recipe / Ingredient Managment
Assemblies
Bill of Materials
Automated Purchase Orders
Automated Stock Transfers
Barcodes & Labels
Barcode Generation
Dymo Label Printing
Brother Label Printing
Avery Label Printing
Scan-to-Create Stocktakes
Scan-to-Create Invoices
Scan-to-Create Purchase Orders
Scan-to-Create Transfers
Reporting
Custom Dashboards
Sales Goal Tracking
Franchise Reporting
Product Profitability Reports
Inventory Change Reports
Dead Inventory Reports
Inventory Valuation Reports
Low Inventory Reports
Unsold Product Reports
Saved Reports
Region / District Reporting
Scheduled Reports
Intelligent Stock Forecasting
Wholesale
Customer Managment
Dynamic Price Lists
Wholesale Reporting
Payment Terms
Payments
Invoicing
Security
Theft / Discount Tracking
Multifactor Authentication
User Access Permissions
Support
Email
Live Chat
Phone
Dedicated Account Manager
Professional Services
Account Implementation
Get Quote
Get Quote
Get Quote
Get Quote
Catalog Migration
Get Quote
Get Quote
Get Quote
Get Quote
Product Creation
Get Quote
Get Quote
Get Quote
Get Quote
Extras
Global Currency Support
Dashboard Reporting App
Barcode Scanner App
Alexa Voice Command
Additional Transactions Available
Google for Retail Integration
QuickBooks Online Integration
Beta Feature Access