We were struck by a CNBC article appearing this week, with the provocative headline, “Cash-only Business Owners Risk $100 Billion Mistake.”
The article notes that “As American consumers begin to embrace tap-and-pay smartphone apps, relegating plastic to a deep recess in the pocketbook or wallet, more than half of U.S. small business owners continue to live in the past—forget mobile apps, they don’t take American Express, or anything other than cash.”
Of course, for some small businesses, the lure frankly is to keep the percentage they’d otherwise pay in bank fees, especially if their profit margins are already tight. The article cites a report by Javelin Strategy & Research, which says “27 percent of all in-person point-of-sale purchases were made with cash in 2011, while payments made with plastic cards—debit and credit—comprised 66 percent, and that is expected to rise.”
And yet, surprisingly, “Fifty-five percent of the nation’s 27 million small businesses don’t accept credit cards, according to Intuit, the Silicon Valley software firm that develops financial and tax prep solutions for small companies. By not accepting cards, those 15 million businesses are missing out on $100 billion in sales annually—roughly $7,000 per company a year in either new sales or sales that go to competitors that do accept cards, said Intuit.”
Now, given that you’re already reading this at AVPSolutions.com, you already know all that. But you may not realize that AVPS is making it easier than ever for you, and your business, to accept cards.
For example, among our mobile processing options, we now offer POS devices for your tablets and smartphones. You simply plug in the device, download the Apple or Android APP, and you’re ready to go!
And if you’re one of those merchants who worries about the tight margins, remember that swiping credit cards through a mag card reader qualifies for lower processing rates! You’ll not only have more flexibility, which your customers will have as well, but you’ll be saving “on the spot” with AVPS.
Contact your rep today for more details. No sense letting your share of that $100 Billion get “swiped” — from you!