Why Do Some Businesses Not Accept Credit Cards ?

It may seem silly in today’s economic environment for a business to not accept credit cards, but you are likely to find a surprising number of them that do not. It is especially common with small businesses.

Why Do Some Businesses Not Accept Credit Cards?

While you may think this is detrimental for the company, they often refuse credit card payments for some very good reasons.


Forbes states that one of the biggest reasons why companies do not accept credit cards is the fees they must pay to do so. What you and other consumers may not realize is that every time you use your credit card, it costs the merchant money.

Larger retailers roll these fees into the costs of their products. Small businesses have a harder time doing this because they already face stiff competition on pricing with the large companies.

If a small business raises its prices, it could lose customers. Many feel they would lose more customers by raising prices to cover fees than they lose by not taking credit cards.

Other Concerns

Accepting credit cards requires a steady connection to the internet. If a business is in a rural area where the internet is spotty, it may not want to hassle with taking cards.

Another issue is the costs associated with chargeback fraud and other issues. While there are chargeback solutions that can help to prevent this from happening, they cost money, and some smaller businesses may find the hassle is too much to make it worth it.

Finally, some business owners simply do not want to change their processes. If they’ve always had a cash-only business, then they may not want to mess with changing things and having to learn new methods to take credit cards.

Is It a Good Idea?

Obviously, if you operate even part of your business online, you have to take credit cards, so it makes no sense to operate a cash-only business. If you have a larger sized business, again, accepting credit cards is almost a necessity.

However, if you own a small business and operate only in your local community, then your customers know your policies. They likely have no issue with your cash-only rule. So, you can probably continue on without having to start accepting credit cards. It is a good idea, though, to stay open to the idea because, in the future, you probably won’t have a choice but to allow their use.

Posted in: Business, Credit Card