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Anita Campbell - CEO

Anita Campbell Anita Campbell is the Founder and Publisher of Small Business Trends and has been following trends in small businesses since 2003. She is the owner of BizSugar, a social media site for small businesses, and also serves as CEO of TweakYourBiz.com.

16 Reactions

  1. The biggest concern I hear concerns the fee charged for processing the credit card. As long as you’re increasing the average profit/transaction by more than the fee (and unless you’re running very thin margins, this should be very likely) you should accept credit cards.

  2. Martin Lindeskog

    Point #6 is very important I think. The cash flow is the life blood of the business. I was amazed that the manual handling of check is so common still on the North American market. It is almost gone totally in Scandinavia.

  3. Martin Lindeskog

    As a philosophical side-note on payments and the title of this post.

    Cash is king if it is real money like silver and gold coins! 🙂 I recommend you to read Michael Maloney’s book on this topic in order to get an understanding on currencies, real money, the financial opportunities, etc.

  4. Martin Lindeskog

    Cont.: I hope to see more payment alternatives in the future there you back the digital payment with real money like GoldMoney. I wonder if the increased popularity of BitCoin could change the behavior of financial transactions online. The problem with BitCoin is that is created out of “bits & bites” (0, 1) by a computer formula…

  5. I think that these are all great points why all small businesses should accept credit cards. The increase in sales and customer service should help offset the fees required and help retain customers. Thanks for the great article!

  6. Good stuff Anita! I agree with all your points from the merchant side of the transaction. As the client/customer you simply are not giving me the very best option for ME to pay you if you are not allowing me to pay with credit cards.

    We prefer to pay as much as possible with credit cards. We get the payment protection plus the rewards. You can take it a step further by paying as many bills as possible right after your statement period ends. By doing that you won’t be billed for another 25-30 days and then you’ll have at least 21 more days before your payment is due. Imagine getting your purchase made but the cash doesn’t flow out of your bank account for another 50-60 days and you pay NO interest! We say Cash-Flow is KING but then we forget to take advantage of great tools like this. Thanks for the great read Anita!

    • Anita Campbell

      Hi Tom. I so agree with you — it’s really about what the customer wants. It can be tempting to make a quick decision because of focusing on what seems to save you a little money, but you can cut your legs from under you.

      I learned that when helping my husband in his art gallery. There’s a lot competition for discretionary spending, and you don’t want to give buyers ANY reason to go to your competition. The small things like being credit-card friendly make all the difference, especially for big ticket items like in our gallery. People just don’t carry that kind of cash around, nor checks.

      And I’d rather have a credit card sale, than have someone ponder because we’ve made their decision to buy a bit cumbersome on them.

      – Anita

  7. These are good points Anita. Firstly, people definitely spend more with credit cards as they don’t have to give the cash instantly. Most of the impulsive buying happens with credit cards. Most of us don’t like to carry cash on us these days and a credit card gives the freedom to buy what we may want to and make the payment over time. I agree what a few have said about credit card companies charging processing fees. Increased cash flow is a very good point as businesses get instant money that can be very handy for other operations. Thanks for sharing this great article.

  8. Accepting payments through credit cards can enhance the sales and there is always an increase in the cash flow. People feel to spend more when there is an opportunity of making payments via credit cards. If you look around you would find that most of your competitors are accepting credit card payments from their customers because it allows them to pay faster without any fuss.

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