Benefits of Accepting Credit Cards

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We know that small business owners who process at least $3,500 in monthly credit card sales may qualify to receive a merchant cash advance.  These funds can be used without restrictions and are repaid through a flexible repayment method, in which a small percentage of daily credit card sales is automatically deducted and put toward the repayment of the merchant cash advance.  To top it off, they can be renewed every three to four months.  But according to allbusiness.com, the possibility of qualifying for a merchant cash advance of up to $500,000 is not the only benefit of accepting credit cards.  “…businesses that accept plastic are one step closer to getting some relief from swipe fees,” wrote allbusiness.com staff.

If you accept credit cards, you know that there are fees for doing so, but due to a recent Senate vote of 64-33, these fees may soon be decreasing.  “The amendment seeks to rein in transaction fees for debit cards issued by banks (excluding small financial institutions) by bringing them under the control of the Federal Reserve; the Fed would be given a mandate to make fees ‘reasonable and proportionate,’” (allbusiness.com).

This will very likely come as a relief to small business owners, as according to the article, consumers have increased their usage of both credit cards and debit cards, while issuers have drastically increased the fees that merchants must pay per swipe.

These lowered fees may even make the merchant cash advance an even more appealing method of business financing for small business owners.