GoPayment Survey Estimates $100 Billion in Missed Sales for Small Businesses that Deny Plastic

 

MarketWatch

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--For Main Street America, the secret to success is in the cards – credit cards, that is.
“Now that I process my clients’ credit cards right on my iPad, I never have to turn down a potential customer, and I get paid faster and more reliably. Check out is speedy and convenient for my clients, and they’re impressed by the sleek, innovative technology.”
According to a recent Intuit Inc. (Nasdaq: INTU) GoPayment survey, 55 percent of the nation’s 27 million small businesses do not accept credit cards. Those nearly 15 million U.S. small businesses potentially miss out on $100 billion in sales annually. Intuit estimates that each company that does not accept plastic misses out on approximately $7,000 in sales annually equating to about more than $100 billion in collectively lost revenue. This missed opportunity represents a combination of new sales and sales that go to other businesses that accept credit cards.
Releasing the Cash Flow Chokehold
Small businesses also face a cash flow chokehold, waiting for an average of $5,140 per month in overdue payments. That’s a potential $1.7 trillion collective cash flow strain annually across all small businesses in the U.S.
“Getting paid promptly can be a huge pain for small businesses,” said Cynthia Okimoto, owner of New York Dog Nanny. “It used to be that if clients didn’t have cash handy, they’d pay by check. Depending on the situation, the payment wouldn’t make it to my business bank account for days or even weeks at times. The process was inefficient and stressful for both my clients and me.”
Accepting credit cards on the spot helps alleviate this cash flow strain. Small businesses that accept plastic make more sales and get paid quicker than those that don’t. The survey found that 83 percent of firms that accept credit cards make more sales, with 52 percent making at least $1,000 more per month and 18 percent making at least $20,000 more per month. Also, 74 percent of those surveyed said they get paid faster and reduce bad debt by accepting credit cards.

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