What Percentage Of UK Businesses Accept Credit Card Payments

Over 60% of shoppers prefer buying from stores that accept credit cards. However, slightly more than a third of small and medium-sized businesses accept credit card payments. This means that a considerably large number of shopper routinely walk of a number of businesses per day. The reasons why a company may or may not accept credit cards differ and here are a few commonly stated reasons for each argument;

Why Some Stores Accept Credit Cards Payments

By accepting credit card payments, businesses make themselves a convenient and preferable option, to about 80% of UK shoppers. This is because an individual will not have to carry large sums of money to make a purchase. Additionally, shoppers will feel secure that even if they do not have enough cash on them, they can still make a purchase and settle the remainder of the bill using their credit cards.

Business owners also benefit from this because individuals who are not worried about how much money they are allowed to spend will inevitably spend more. Using credit cards also minimized the inhibition to impulse shop, which means more business for the entrepreneur. An additional benefit of this is that the business owner will not be needed to keep large sums of money at the store.

Why Some Business May Not Accept Credit Cards

By accepting credit card payments a business owner also inevitably agrees that a certain amount of money will be deducted from every payment they receive. To offset these charges, an entrepreneur may need to raise their prices, which in turn will affect their sales and profit margins. Additionally, they will need to set up a payment terminal. You also need to remember that using credit cards leaves a paper trail. If an individual is selling something illegal or committing tax fraud, they will want this option. Cases of credit card fraud are existent although they are not very common. This may make some people wary of acquiring the cards. Additionally, this same reason may make some store owners wary of accepting this form of payment.

Currently, the world is going paperless especially when it comes to money. This can be seen by the number of young people opting to apply for credit and debit cards and the reduction of banking halls and ATM points. Therefore, business needs to adapt quickly if they want to retain their clientele and attract new customers. Additionally;

  • Accepting credit cards gives them access to the merchant cash advance. This option will allow them to get financing without having to dig into their savings or taking a bank loan. With this option, a certain percentage will be deducted from the daily credit payments made at the business and used to repay the advance.
  • It will ease their accounting. The credit card terminals will have records of every transaction made, and this information is easier to collect and more accurate to use for bookkeeping than the dozens of receipts generated by cash payments. If you would prefer to hire a professional for this, you can consider using Weaccountax bookkeeping services online.

It is reasonable to distrust the things we are not familiar with, but it is also logical to make your business adaptive. This way, it will thrive regardless of passing economic and financial trends. Before making the final step towards accepting this form of payment, make sure you talk to a professional. This way, you have as much information as you need, to make your decision and get started. You may also want to survey the market focusing mainly on businesses similar to yours. This way you can stay a step ahead of your competition.