By Jeffrey Connors
Chairman and CEO
August 5, 2014
Checks once accounted for 86 percent of all non-cash payments, but in recent years they’ve fallen out of favor, says a recent article by Matt Phillips in The Atlantic in which he cited statistics from the Federal Reserve’s Cash Products Office. In 2000, checks were used in more than 40 billion transactions; that number is down to less than 20 billion, according to the Fed’s most recent numbers, which are based on a survey conducted in October 2012.
What has replaced checks? According to the article titled, “The Spectacular Decline of Checks,” debit cards and credit cards are by far consumers’ favorite way to make payments. Some 43 percent of the consumers surveyed by the Fed said debit was their preferred method of payment. Another 22 percent preferred using credit cards.Image courtesy of phanlop88 / FreeDigitalPhotos.net
And this reminded me: “Has your business made the switch to accepting credit cards? Businesses that refuse to accept debit and credit card payments may be missing out on a significant number of sales every month. The costs of upgrading may seem daunting, but the long term benefits should most definitely be examined before a final decision is made.
Research has found that businesses accepting non-cash purchase payments have seen increased revenue by more than 30% since 2009. Merchants attract and retain more customers when they have payment technologies that accept credit and debit. As a consumer, isn’t it disappointing to want to spend at a store, only to find they only accept cash? Don’t risk losing out on your share of sales.
It is imperative for business owners to consider which payment options they are going to offer and what company they are going to partner with to complete each transaction. But, you should, at the very least, be set up to process credit and debit cards.