If you opt to be paid by check because you want to save money on credit card fees, here’s some surprising news: When you crunch the numbers, accepting checks can cost you more.
Check out the infographic below to see how accepting credit cards can improve sales, save time, and cost less than checks!
Not Accepting Credit Cards is Costing Your Business
Get Paid Faster
Customers pay invoices by credit card 10 days faster than by cash or check.
On average, invoices paid by credit card are paid within 8 days.
On average, invoices paid by cash and check are paid within 18 days.
Increase Sales Potential
83% of small businesses have increased sales by accepting credit cards.
57% of small businesses have been asked by their customers to accept credit cards.
66% of purchases are made by card. 15% are made by check, and that number is decreasing.
33% of customers use a card for every purchase, even those under $5.
22% of customers prefer paying with a credit card. Only 3% prefer checks.
Checks are expensive! Processing a $500 invoice paid by check costs, on average, $33.
– $7 – Time to Create and Send an Invoice
– $15.50 – Bad Debts
– $0.50 – Transferring Funds
– $8 – Errors and Reconciliations
– $2 – Working Capital
Invoicing is unlimited and free. Accept credit cards for 2.9% + 30¢ per transaction.
- Wave Payment Platform – Statistics
- ACA International – Check and ACH Statistics
- USA Today – Is cash becoming a thing of the past?
- FRBSF – Cash continues to play a key role in consumer spending…
- Small Business Trends – Cash isn’t always king…
- Forbes – Why don’t more small businesses accept credit cards
- Yahoo! Finance – WePay’s small business payments survey…
Stats are representative of the U.S. market and are presented in USD.
The information and tips we’re sharing in this article are meant to be a starting point for your year-end tax prep, so you can be informed and feel confident when working with your accountant. Be sure to check with a tax expert in your country or region for any specific advice you need, as each business (and tax district) is different. As our lawyers would say: “This article is for informational purposes only. It should not be considered legal or financial advice.”