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Accepting credit cards

Should a small business accept credit cards? 
Since Check 21 became law in 2004, more and more merchants can verify the availability of funds in a checking account at the point-of-sale. At the same time, more consumers are using debit cards, rather than writing a check that is just given back to them after approval.

When you combine these two trends with the fact that even non-debit card payers want to use credit to pay, the need for small businesses to accept credit cards and debit cards is increasingly one of necessity, and not an option.

Furthermore, consumers are more likely to buy items if they can pay for them later. Credit cards can even be used to help you make "add-on" and impulse sales.

You often will get funds available to you quicker with credit or debits than with a check. But remember, there is a fee of typically 3% to 4% for credit card transactions. So you have to take that into consideration as part of your cost of doing business. 
Brain Trust contributor: Editor, Streetwise Small Business Book of Lists
Related Categories: Cash Managment, Credit, Management, Selling
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