Credit card processing seems simple enough: get a merchant account, set up your point-of-sale system and start accepting credit cards. But for many small businesses – especially mom-and-pop shops, one-person businesses and home-based sellers – the decision to accept credit cards is often more difficult. When you’re a small business owner, you’re not bringing in as much money as larger businesses, and credit card processing fees likely have more of an impact on your cash flow.

It’s easy to decide not to accept payments via credit card, but doing so can have a negative impact on your business. We live in a technological age where people rarely carry cash, and for your business to succeed, you’ll need to accept some form of credit card payment. Businesses that only accept cash will quickly find themselves losing out on sales to competitors and big box stores.

Although transitioning from a cash-only model to one that allows customers to pay with credit cards may seem like a difficult task, but there are many services available to small business owners that make the transition simple. If you’re still hesitant to accept credit card payments, here are several benefits to consider:

Accepting credit cards eliminates the risk of accepting a bad check

If you don’t accept credit card payments, you probably accept two other forms of payment: cash and checks. One bounced check can take a large chunk out of your profit for the day. Plus, you’ll waste time tracking down the customer who gave you the bad check in order to make good on the sale. The fee for a bounced check will likely cost you more than the credit card processing fee for that transaction. Additionally, credit card transactions are screened as they’re being processed in order to reduce the risk of fraud.

Credit cards are convenient for shoppers

Think about the reason you went into business in the first place. Aside from wanting to make money, you probably started your business so you could share your passion and product(s) with the world. Not accepting credit card payments is a simple way to prevent people from buying your product. Customers want to use a method of payment that’s convenient and beneficial for them, and that usually means paying with a debit or credit card. Can you really afford to lose a customer just because you don’t offer credit card payments?

Accepting credit cards is a relatively inexpensive business expensive

While it’s true that paying a credit card processing fee on every transaction may seem like too much to a small business owner, it’s important to understand how much the industry has evolved. Credit card processing has become a highly competitive industry, and there are many different merchant service providers out there. Because of this, you’re likely to find a merchant service package that fits your budget – even if you’re a mom and pop shop.

Although the cost of accepting credit cards may seem high, the cost of not accepting credit cards is even higher. Credit card processing is a relatively inexpensive business expense when you think about the return on investment it will provide.