You Can’t Afford NOT to Get Credit Card Acceptance


“Ms. Smith, I appreciate what you are saying, however, I’ve been talking to thousands of Business Owners just like yourself for over 6yrs (yes, I am biased).  I’ve seen everyone’s numbers regardless of volume or business model.
Credit card acceptance is essential in this economy for any Small Business Owner.  Just consider these ideas below.

Credit card acceptance (payment processing) makes it possible for Potential Customers to pay for things that they can’t afford or have money on them to afford at that specific time that they had the emotional (never logical) urge to purchase your product/ service.

Credit card acceptance ALWAYS makes a difference in a business’ total volume each month.

How many times have you thought to yourself that you will not return to this store because it doesn’t accept debit/ credit cards?  How often do you use your cards?  Do your competitors accept credit cards?

Let’s look at an example:

I quoted you $35/mth PC & Internet Processing (Virtual Terminal), and 2.25% + 10c/trans.
Let’s see how much of that on $1000 of visa & mastercard total volume, then you can multiply easily this variable portion of your expense for Merchant Services.  The $35/mth is fixed no matter how much volume you do,until after 4th year, then it goes down to $15/mth.

2.25 X 1000= $22.50
let’s say your avg sale amt is $100, then that’s 10 trans.   10trans X 10c= $1
variable fee is at $23.50 for every $1000 of sales volume.

total= $35 for the system (fixed)+ 23.50= $58.50 for $1000 of extra volume.

how much for $5000/mth in volume? Also easy to multiply.

23.50 X 5= $117.50 + $35 (fixed)= $152.50 for $5000 of extra volume.


now what’s the gross margin on that?

let’s be conservative and say 20%, so in our two examples:

20% X $1000= $200 and $1000 on the $5000 volume


pay $58.50 to make $200 gross margin

pay $152.50 to make $1000 gross margin


Also, three more points:
1  How much of your monthly fees are TAX Deductible?

You are not losing cash, you are losing the $58.50 cashflow for that month, but are you losing that in cash if it’s deducted at the end of the year?
*Please confirm details of your specific situation w/ a qualified accountant.

2  You get your money in 1-2bus days compared to accepting cheques which have a risk of bouncing on you after the product leaves your hands, and 5 bus day holds on cheques.

3  This is the least expensive form of lending you can get.  When you accept a credit card payment from a Customer, the Credit Card Processor deposits the amount of the purchase in your account in 1-2bus days of THEIR MONEY.  Then they go collect from your Customer’s Credit Card Company.  This is essentially like short term lending.

In the end, you must do what is best for your business long term, and I don’t know the real details of your specific situation.  But I hope this helps with a different perspective.

Take Care, Dat To”


One Response so far

I am pleased to know that your company had a commitment to help small business owner like me.
Anyhow , please consider my situation.

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