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What are the pros and cons of accepting credit cards as a small business?

I am a relatively small business (I work full time M-F and have a small business I run nights and weekends). Not sure if it would be beneficial for me to begin accepting CC as a form of payment. I have always accepted cash and checks with no problems at all... yet.

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The universe is moving towards mobile - EVERYTHING. Therefore you have to keep up with current technology. There are plenty of portals which are protected and encoded for protection against ID theft. Don't be scared. Paypal is a perfectly acceptable option and its basicly free and super easy to set up. It also has some great options for small business owners such as auto invoicing etc. Download the app onto your phone and you can accept cards straight from your mobile device. Bam.


I agree with this comment and I agree with the answers dealing with cost but every answer does not tell you that you also have to be PCI-DSS complaint and have proper encryption at and firewalls between the credit/ debit car reader. read this informationhttps://www.pcisecuritystandards.org/pci_security/ and always check links people send you with this Norton tool https://safeweb.norton.com/


I think we are at a time when most everyone expects to be able to pay with a credit card. Of course one of the negatives of accepting credit cards are the fees. A few seem to worry about charge backs but we have accepted credit cards for years without any significant problems. The plus side of it is you don't have to worry about checks bouncing and it will increase your sales. My guess is the increase will more than cover the fees involved.

As Marta suggested one option you can look at is PayPal. I do think at some point actually taking credit cards is the better way to go but PayPal might serve as a bridge in the meantime.

I used to pay for most everything with cash or check but find myself mostly shopping with my credit card these days for the convenience and record keeping.

Anonymous User

There are load's of pros and cons.

Charge backs are the biggest evil the visa guarantee scheme
in so many words if you didn't give the customer the right goods, service there getting there money back.
You need a pretty good credit rating.
There are pros like being able to take payment on the spot.
Increasing takings cause most people don't carry cash.

I would weigh the pros and cons up ask your self why do i need this ? is my customers or clients asking for this ? can you cover the charges by taking card payment?

Very well put Kevin Blumer. People often overlook the processing fees and the potential for the
charge backs.


Great question as long as you know exactly what your objectives are. Two things I could think of that should be consider, transaction value and listen to your customers. If your transaction value is so large that credit card is not an option and stick with what's working. If your customers are often asking for credit card payments, then offering alternative payment methods almost always better, because it's less hassle and easier on your accounting (because everything is automated)

People will say go mobile, but if your customers are not ready for mobile, there is no point going mobile payments (or you'll need to spend more time educating them). I worked with restaurant owners on web development, some of them don't even have email addresses! So I ended up helping them setup email accounts.

Some of the pros are: alternative payment options provides efficiency for the customer, organized accounting on your side, professionalism
cons: frauds, some fees might be involved

In general it's quite easy now to setup credit card payments for your small business.
You have several options that I recommended:
Square (if you want to take CC payments in real person) | squareup.com
Shopify (if you need an eCommerce website that takes CC) | https://www.shopify.com/?ref=secretshop
Wave (if you need to send invoices and accept CC) | waveapps.com

Hope this helps!


Credit cards are more convenient for customers and people will tend to purchase more if they have access to more of their money versus cash on hand.
The downside are the processing fee's and the potential for charge backs, also known for forced return of their funds if they disagree with your product or service invoice or work. Those are usually few and far between as long as your business fulfills its promises.


Pros of Credit Card Payments:

MasterCard & Visa credit cards are quickly becoming the most popular means of customer payment. This is due to a number of reasons, among which include the fact that businesses can easily set themselves up to accept them.

Convenience is the major factor for why consumers use credit cards. It's less convenient to have to stop at an ATM and take out money for a purchase. It's also very convenient to have a credit card handy for impulse purchases, which are much more likely to happen on credit than cash. The forced opportunity to think about the purchase price and the purchase itself during the time it takes to get cash drastically decreases probability of a sale. These individuals have to: leave the purchase point, travel to the bank or home where cash is kept, obtain the right amount and travel back to the store. That means that many who leave the store to "get cash" are not coming back for their purchase. Offering the ability to pay for a credit card will improve sales noticeably in almost every situation.

Cons of Credit Card Payments:

Credit card fraud is a concern for some who are considering various forms of payment. Though there are plenty of laws inhibiting those who would engage in fraudulent behavior, credit cards are still more likely to be "stolen" in comparison to cash. It is important to consider your company's ability to protect your customers and the security of their personal financial information when accepting credit cards as payment.

The other reason businesses might prefer to remain cash only is because every transaction processed using a credit card comes with a small fee. Some businesses find themselves refusing to offer the chance to pay with a credit card simply on principle. Others feel that due to their specific niche, product, etc. the fees add up and aren't worth it in comparison to total sales. In most cases, the increase in sales more than makes up for the minimal fees associated with credit card payment processing, but each business should consider the associated fees of their chosen provider in association with their average sale prices, etc.

Businesses considering adding the option for credit card payment to their company's repertoire should consider the costs of setup as well as any fees associate with credit processing services. Additionally, depending on the method of bookkeeping, business owners might find that adding credit cards as a payment option leaves them with a hassle when they attempt to maintain the business accounts.


If nothing else, it will cost a little bit of money to start accepting MasterCard & Visa credit card payments. However, this can be a necessary expense for your small business in exchange for the convenience and likelihood of impulse purchases. The popularity of credit cards as a means of payment has changed the name of the game for business owners. The ability to pay using a credit card is no longer a handy convenience or luxury. It's now something that consumers expect. If consumers aren't offered the option to pay with a credit card, many will find somewhere else to spend their money.


Good morning Tamara,
Over the past 25 years working with all types and sizes of businesses from flea markets to giants, I have never seen an instance where CC acceptance did not help. In the small business scenario, average ticket goes up as well as revenue. It will cost roughly 3% (overall) to accept CCs, but the increase in profitability from growth will far overshadow the cost. Additionally, clients see you as more trustworthy and better established if you do accept CCs. If I can be of service, please don't hesitate to contact me.


Don't Sweat the Small Stuff - accept credit cards. Nowadays, is not only what you prefer or what you considerbest, but what can you do to ease your clients payment processing, how can you charge right away, how not to make them think twice. Engage, offer, and cashinggggg. Accept credit card on websites and mobiles right away.


Pros - it is an expected and essential payment method when selling online.
Cons - charge-backs are they main pitfall, but risk can be minimised with the right payment gateway and your own vigorous procedures.


If you feel that you are getting the maximum business using cash and checks , and their are no security problems the only reason to accept credit cards would be to obtain new and added clients. Remember that accepting credit cards means added processing costs and risks with the new EMV regulations meaning learning compliance rules. Figure an added 3-4% additional costs plus the fact that you must monitor your statement every month. Many merchants neglect this and some processors take advantage by adding complicated and hidden charges.

Hope that this helps.

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