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Will My Small Business Be Impacted If I Set a Minimum for Credit Card Purchases?

Will My Small Business Be Impacted If I Set a Minimum for Credit Card Purchases?

Update: 2019-01-301
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Does your small business require customers to meet a certain purchase minimum before they can pay with their credit cards? While this idea might seem like a practical way to offset the additional costs of credit card fees, it can actually have the opposite effect and cause you to lose a lot of business. In episode #143, Gene Marks and Elizabeth Larkin discuss the negative impact of setting a price minimum on credit card purchases as well as more effective payment policies.





Executive Summary

2:26 —Today's Topic: Will My Small Business Be Impacted If I Set a Minimum for Credit Card Purchases?



2:54 —When retail businesses impose specific payment restrictions on credit card purchases, they tend to lose a lot of business because their customers don't want to be pressured into buying unnecessary items.



4:06 —Instead of enforcing a strict payment minimum for credit card purchases, small business owners can impose an overcharge or surcharge to cover the additional fees associated with these types of transactions.



4:39 —Providing multiple payment options increases your chances of a customer purchase.



5:09 —Small business owners need to keep up with the payment trends of their industry; otherwise, they will lose out on a substantial amount of business.



5:40 —However, business owners also need to avoid the extremes of only accepting credit card or only accepting cash.



8:05 —Gene encourages small business owners to invest in some type artificial intelligence software because these programs can help reduce the amount of time that they spend on customer requests and inquiries.

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Transcript

Elizabeth: Welcome back to the Small Biz Ahead podcast, I'm Elizabeth Larkin from The Hartford. I'm here with Gene Marks from the Marks Group.



Gene: We're live on video.



Elizabeth: We're live.



Gene: This is our first video that we are doing together.


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Will My Small Business Be Impacted If I Set a Minimum for Credit Card Purchases?

Will My Small Business Be Impacted If I Set a Minimum for Credit Card Purchases?

The Hartford