Re: Cost of Accepting Credit Cards

abevan — Wed, 22 Jul 2009 11:47:17 -0000

In my opinion, the merchants not offering their consumers the ability to pay by credit card will seriously impact their bottom line. In a number of countries the use of credit cards far outweights the use of debit cards.

Cardmembers typically in this economic environment either max out their credit cards or pay it off in full each month to avoid hefty interest charges, there currently seems to be little in between of these two situations, therefore there is a lot of spend coming through this form of payment type.

Additionally with the offers, packages and loyalty schemes credit cards provide such as cash back or airmiles etc this further enhances card member spend and therefore would in turn boost merchant sales and profit.

Granted the merchant profit margin is reduced but i believe this is outweighed by the increased sales. Furthermore if merchants accept American Express who typically have a high affluant card member base then average sale amounts will be greater resulting in more sales and more profit for the merchant....

Therefore it can be concluded that there are benefits for the merchant and the cardmember to have a credit card and those merchants that dont accept credit cards will loose out against those that do. Especially as many people shop online for cheap prices, more choice and its easier and quick to find a merchant that takes your card.

Dont take credit cards..... what about dont accept debit cards!?

Disqus - Latest Comments for abevan

Re: Cost of Accepting Credit Cards