Pros & Cons of Credit Card Processing

Like any other business, there are advantages and disadvantages to accepting credit cards. We have included both so you can make an informed decision on if your business should sign up for merchant services. Regardless of the cost you incur, you will see that the benefits outweigh the negatives.

Merchant Account Pros

Increased Sales - credit card orders are generally larger in nature than cash & check orders.
Faster Checkout - speed up your checkout line as it is much quicker to accept a credit card payment.
Cheaper than Cash - due to the larger order amounts, it can be cheaper to accept credit cards then cash.
More Security - You have more security problems when dealing with cash. You must deal with large amounts of money in the drawer and the possibility of employees giving out the wrong change amount.
More Choices - by giving your customers as many payment options as possible, you have a smaller chance of losing the sale.

Merchant Account Cons

Cost - like every other cost a business incurs, there is one when you accept credit cards. You can simply look at it as a cost of doing business.
Fraud - Internet / Keyed in merchants are more prone to receiving fraud, but it is one thing that you must deal with when accepting credit cards.
Chargebacks - since you are dealing with credit cards, you must abide by the rules of Visa & MasterCard. Therefore, consumers are more protected when paying with a credit card and can often at times win against a merchant when they dispute a charge.

Credit Card Processing Articles