Do you accept credit cards?

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Do you accept credit cards?

Hi, this is Judi Otton with GrowthCast, and I meet quite a few business owners who don’t. I get it. They take a 2.5% to 3% slice right off the top of every payment you receive. But let me give you some reasons why you might want to reconsider.

First of all, your time is valuable. If you’re spending time chasing down clients and trying to get paid, that is worth something you or someone in your organization, that’s worth something. Plus, you’re having those really uncomfortable conversations with your clients.

Second, by taking credit cards, it makes it really easy for your customers to pay you. First of all, if their cash is tight, they can put it on a credit card. But also, if, as I do, you have subscription clients that stay on with you month after month, you can just charge their credit card month after month, set up an automatic receipt, and there is zero work involved in getting paid.

And finally, cash flow and opportunity cost. Having that cash just deposited in your bank two or three days after it gets paid is worth something. You have it there when you need it. You’re not putting things on your credit card and floating those expenses. If a great opportunity comes up, you can take advantage of it. And finally, with today’s interest rates, you may be paying 3% for a credit card fee, but you can get 5% in a high-yield savings account. So, if you’re not taking credit card payments, I highly encourage you to reconsider.

This is Judi Otton with GrowthCast, and I’ll be back next time with a new Fiscal Fitness Tip of the Week.

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