Micro firm owners need to step up their game when it comes to card payments
Inconvenient for customers, time-consuming for staff and no safer than electronic payments, cash isnt king anymore, and the sooner business owners wise up to this fact, the better.
The UK managing director of Worldpay recently warned that retailers not accepting contactless payments are at risk of being left behind? as the technology increases in popularity with consumers. But the most recent statistics available compiled by Barclaycard in 2014 showed that a whooping 58 per cent of SMEs are not set up to allow customers to pay by credit or debit card at all.
With the majority of customers likely to choose a business where they can pay by card over a firm that doesnt let them do this, micro business owners are quite frankly throwing custom away by refusing to let buyers pay in a convenient way.
Too many small retailers are still refusing to accept modern payments because of fears over processing costs. Of course, card issuers are always going to charge something to companies who get revenue electronically these firms have to make money somehow.
But accepting card payments is now cheaper than ever before. New EU rules which came into place in December 2015 imposed a cap on interchange fees the amount that card issuers can charge merchants for processing card payments. And letting customers use contactless payment is usually cheaper than requiring chip and pin for transactions under 10, according to Worldpay.
The idea that taking electronic payments requires a costly investment in cumbersome technology is also a fallacy. There are a plethora of mobile solutions out there that cost nothing and require nothing more than a smartphone or tablet with traditional payment processors like Barclays as well as tech upstarts like PayPal offering competing systems.
Young micro businesses and pop-up traders operating from ever-changing locations stand to benefit the most from these innovations but the low investment needed means that the most grudging converts to card payments should give them a go.
Hannah Wilkinson is a reporter for Business Advice. She studied economics and management at Oxford University and prior to joining Business Advice wrote for Kensington and Chelsea Today about business and economics as well as running a tutoring company.
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