Why Turn Away Paying Customers?

There is nothing more aggravating to me than a "cash only" business.

I see the rationale. I've been there as a business owner. Times are tough and dollars are tight. At the end of the month when preparing and reviewing financial statements, there is that "bank charge" that looms heavy for credit card processing.

"If I eliminate that expense," many business owners say, "my bottom line will improve."

Aaagghh! What these owners fail to realize is that this strategy will acutally shrink your bottom line!

You see, customers will buy more when they have a variety of payment options. "We only take cash" means "take your business somewhere else" for many consumers.

Just the other day, I walked out of three bakeries in a row because they did not take cash. And it worked out for me. Instead of $6 for a coffee and a pastry, I went to the grocery store and got a donut for $0.69. Three businesses missed out on my business. Moreover, I doubt I will go back even if I have cash just because my options as a consumer are limited!

Studies have shown again and again that the average check size increases when people use credit cards. In an internally circulated study several years ago, Yum! brands (Taco Bell, KFC, Pizza Hut, LJS, A&W, etc.) concluded that credit transactions boasted 30% greater average check size.

30% is more than enough to offset any credit card processing fees.

Make it easy for people to do business with you.

If you have to turn a paying customer away simply because you do not want to pay banks to process the credit cards, then your business has much deeper issues than its bottom line.