Small Business Owners Seek to Reduce Credit Card Fees
According to a New York Times article published recently by Jane Birnbaum, small business merchants are lobbying to get banks to negotiate fees that they claim are too high during a period when business is slowing. Nowadays merchants are indeed facing real problems with profitability, and they are looking to cut costs everywhere they can. But in a culture where swiping plastic has become the norm, merchants have little choice but to accept credit cards, and the benefits for doing so should not be overlooked.
The Times article quotes a spokeswoman for Visa, Denise Dunckel, who says, “What merchants are getting for their money is convenience, risk management, and guaranteed payment.” But aren’t they also getting a paying customer who would not otherwise buy if they had to have the cash on hand? Cash flow will not only be an issue for small businesses in the future, it will be an issue for the consumer who can be expected to continue to rely on credit cards to get through this crunch. And the rewards that the credit cards offer these days are additional motivation to spend.
During a time when banks and credit unions can ill afford to give up fees, one can only hope that they will reach an agreement with small businesses where everyone reaps benefits from the system. In the meantime, small business owners can take advantage of the unique perks and rewards offered to them through a small business credit card of their own.
Any small business owner would be wise to consider a small business credit card. These cards not only add legitimacy to an organization, help to manage day-to-day operations, simplify bookkeeping, and improve company cash flow; they also help build and improve credit. So while customers continue to swipe-to-pay, so, too, can a business owner and his or her employees, all the while taking advantage of the perks and rewards that go a long way toward offsetting merchant fees.
