Shoppers Prefer Credit Cards – Businesses Prefer Cash
Recent surveys show that there is quite a divide on the form of payment that a business and a consumer prefer.
According to surveys by Ispos and Harris Interactive, 72% of small business owners prefer cash or check payments. However, 64% of consumers admit to using less than three checks a month. In fact, over half of the survey participants between the ages of 18 and 34 say they never use checks.
The reason businesses shy away from credit cards is because of the fees they are charged. Every time someone uses a credit card at their business, that business has to pay an interchange or swipe fee to the credit card company. Cash and checks may help avoid these costs, but they can reduce the amount of customers that will actually solicit the business.
69% of Millennials participating in the surveys said that they will not shop at a store that does not accept credit cards.
Surveys were conducted with 2,000 consumers and 1,000 businesses. Of those businesses, 27% said that they receive fewer checks now than they did three years ago.
It is obvious that stores, companies and organizations need to realize the changes that continue to take place in the market. The sooner they embrace these changes, the more customers they will bring in.