sitelogo
Platform
Industries
B2BCannabis
Non-ProfitsStandard
Company
About UsBlogPressCareersContact
Consumers
Request Demo
Posted on 
March 11, 2020

Why Do Credit Cards Hurt Small Businesses?

We’ve all seen it before. You walk into a local store, pick up the items you want, and walk to the checkout line. As soon as you get to the cashier, you see a sign that reads something along the lines of “Sorry, no credit card purchases under $5” or even worse “credit cards not accepted”. Why is this? Are business owners really dumb enough to not accept the preferred method of payment for most people in the United States?

The truth is they aren’t; in fact quite the opposite. Oftentimes, the cost of accepting a credit card is very high and can make certain purchases unprofitable for business owners.

The Cost of Accepting Credit Cards

For the most part, credit card companies take around 2-3% of the purchase as an interchange fee, but it can be even higher depending on the card. Additionally, they charge anywhere between $0.10 and $0.30 as a transaction fee. There may also be a flat monthly rate that further eats into margins for owners, making it really hard to accept credit cards.

Business owners also take on another cost with credit cards: the rewards. Certain cards offer rewards to the user through travel benefits or cash-back. What many people do not know is that these benefits are often paid for by the business owner through higher fees that get added on to the initial costs of accepting cards.

Not only are all these charges expensive for business owners, but they are also inconvenient as card swipes may take multiple days or weeks to reflect in an owner’s bank account. Credit cards are also constantly subject to fraudulent activity, which can harm the business when cardholders issue a refund, adding even further cost to the business.

An Alternative to Credit Cards

Luckily for business owners, there are options with emerging financial technologies to help relieve the cost burden of traditional payment processing. For instance, AeroPay is an alternative payment processing solution that allows customers to pay business owners directly from their mobile device through a simple bank-to-bank transfer - at a much lower cost to the business (hint: lower interchange fees and NO transaction fees). Included in the cost is a built-in global cash-back rewards program for their customers. Business owners will also benefit from payments settling within - and usually sooner than - 24 hours.

The best part, however, is that AeroPay can be used alongside a business owner’s already existing payments processing infrastructure. No need to interrupt or switch anything operationally.

‍

Are you a business owner ready to learn more? Click here to learn more.

Tagged:
Payments
Small Business
FinTech
Parth Pandit
view All Posts
Featured Posts
Cannabis
The Problems With Cash for Cannabis Businesses
Payments
Why Do Credit Cards Hurt Small Businesses?
AeroPay Blog - Coming Soon
Tags
Cannabis
Coming Soon
FinTech
Payments
SaaS
Small Business
Subscribe
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Stay Connected
More Posts

You Might Also Like

Small Business
AeroPay and Nosh partner to help restaurants with better payments and delivery options
Sep 9, 2020
 by 
Daniel Muller
Press Release
AeroPay and Safe Harbor Private Banking Announce Strategic Partnership to Create Better Cannabis Payments
Sep 1, 2020
 by 
Alexander Lipnik
Cannabis
The Problems With Cash for Cannabis Businesses
Jul 15, 2020
 by 
Alexander Lipnik
Press Release
AeroPay Introduces Compliant Digital Payments for State Legal Cannabis Businesses
Jul 6, 2020
 by 
Alexander Lipnik
Nonprofits
Nonprofits Continue Their Mission While Reducing Costs for Accepting Donations
May 20, 2020
 by 
Jake Schario
Payments
4 Reasons to Choose AeroPay Over e-Check
Apr 2, 2020
 by 
Alexander Lipnik
Stay connected:
Chicago Office: 1770 W Berteau Ave #207, Chicago, IL 60613
Office Phone Number: (773) 857-0103
Business
PlatformPricingFAQPrivacyTermsSupport
Company
AboutBlogPressCareersContact
Consumers
InfoSupport
© 2020 AeroPayments
All rights reserved