21-06-2007
SMEs count cost of plastic transactions
Small businesses considering installing facilities to accept debit and credit card transactions should make sure they consider all of the costs and benefits, according to one expert.
Simon Bennett, spokesperson for UK payments association Apacs, said that while firms might be tempted to accept plastic transactions as a result of their growing popularity among consumers, they should ensure they compare the financial cost with any estimated increase in business.
Banks charge fees on all transactions to cover processing costs, so small firms would have to ensure that they are able to meet these and refrain from passing on the cost to their customers, he added.
"Debit cards are one of the most important and most popular methods of payment now. Cash remains quite dominant, but more and more people are choosing to use their debit card rather than carry lots and lots of cash around," Mr Bennett stated.
According to Apacs statistics, 84 per cent of the UK's adult population - equivalent to 41 million people - currently holds a debit card.