Report: Small Businesses that Don’t Accept Credit Cards Forgo $100 Billion per Year
May 24, 2012
Fifty-five percent of the 27 million small businesses in the U.S. do not accept credit cards, according to research conducted by Intuit Inc. The company’s GoPayment product, which enables credit card acceptance using a mobile device, hopes to leverage some of the nearly 15 million small businesses in the U.S. that the research says are missing out on $100 billion in sales (an average of $7,000 each) annually.
Intuit says the missed opportunity represents a combination of new sales and sales that go to other businesses that accept credit cards. Perhaps more importantly for small merchants, many of them face a cash flow problem, waiting for an average of more than $5,000 per month in overdue payments.
“Getting paid in a timely manner can be a huge pain for small businesses,” said Cynthia Okimoto, owner of Intuit customer 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 me and my clients.”