Should Businesses Accept Credit Cards in 2024? Pros and Cons

Should Businesses Accept Credit Cards in 2024_ Pros and Cons

Businesses have accepted credit cards since the 50s, when Frank McNamara and his business partner Ralph Schneider birthed “the Diners Club Card.” It was the first credit card and was a revolutionary idea that removed the need to always carry cash around. It is safe to say that the idea picked on as credit cards are still in use today, not just in use in fact, they are the order of the day, with 2.8 billion credit cards currently in use and only VISA accounting for $226 billion in transactions worldwide.

So, it is a good idea, one that works, so why then is there a need to consider whether businesses should accept it or not? Is there a danger it poses that supersedes its very clear advantages, or is there an alternative that is just outright better? Let’s find out as we explore the pros and cons of credit cards and whether they are a yay or a nay in today’s business world.

The Pros

The Pros of Credit Cards for Businesses

The following are the advantages of using credit cards and why many businesses still use them.

1. It is accepted everywhere and by everyone

The first reason is that all the other businesses still use them. As MasterCard’s tagline states, “There are some things that money can’t buy. For everything else, there’s MasterCard.”

From walk-in malls to online stores to pop-up shops and the casinos reviewed here, everyone accepts credit cards. The ease that comes with knowing and not having to second guess whether your money is accepted here or not, or if you will have to jump through hoops at the cashier, is so settling and is a priority on the list of things any business looking to succeed should afford the customer. However, Sergio Zammit says that while many casino sites accept credit card deposits, some add hidden fees or feature insecure platforms, so take care to only enter your credit card details at trusted sites.

As a business owner, particularly one that’s just starting, just after brainstorming your business ideas for your small business, the next thing you want to be ironed out is the many ways you can ensure convenience for people looking to patronize your business and more times than not, ease of payment is right up there and that’s one thing credit cards undoubtedly bring to the table.

2. Much safer than carrying cash

Credit cards are not the safest options on the block, but they are certainly safer than carrying cash around. It is important to note that the technology that services these credit cards has continued to evolve and now offers protection from many of the pitfalls that plagued it. These tech include but are not limited to the following:

A. EMV Chip Technology

One common cause for concern when shopping with credit cards is card counterfeiting. Credit cards using the older magnetic strip technology can have the information on the strip stolen and counterfeited for unauthorized use. With this new EMV chip tech, which stands for Europay, MasterCard, and Visa, the three corporations that brought about the tech, it becomes nearly impossible to steal information off of the card.

It works by generating a unique code for each transaction, unlike the magnetic strip that shares the card number when used. This code is authorized for use that one time and is immediately blocked when there’s an attempt to use it any other time.

B. Contactless Pay

To further reduce the risk of fraud, cards like the Diners Club card, and others, come standard with Near Field Communication (NFC) technology. Simply put, it allows the card to communicate wirelessly with the point-of-sale device as long as it is nearby. Processing payments this way means that less data is shared, there’s a lesser chance of your card being in foreign hands, and, just as importantly, there’s less time spent waiting in queues.

C. Two-Factor Authentification

If you have ever tried checking out on any of your favorite online shopping sites or apps, chances are that you received a text or email or had to input a code from your authenticator app. This process is called Two-Factor Authentification (or 2FA), and it serves as an extra layer of security to ensure the transaction is being facilitated with the right permissions or by the account holder.

D. Transaction Limit

Credit cards allow owners to set different limits on transactions completed online, at the point of sale, contactless, or using the ATM. These limits can be set anytime on the mobile app and immediately block transactions that go past these set limits while sending you a notice in case there’s been a breach.

With cash, your money is just gone with very little chance of getting it back.

3. Build an Online Presence

From a business standpoint, accepting credit cards makes it nearly effortless for your business to scale from every other physical business to having an online variant. Besides the fact that accepting credit cards builds credibility for your brand or business, being able to process customer orders and receive payments sent from the convenience of their homes cements your online presence and is guaranteed to drive sales.

The Cons

The Cons of Credit Cards for Businesses

The following are some reasons why businesses should discontinue the use of credit cards:

1. There is Bitcoin

If only there were something that could process transactions as fast and safely as credit cards. Newsflash: there is; it is called Bitcoin, and there’s a lot you can buy with it. Casinos, stores, gas, whatever you can think of, there’s a business somewhere willing to get paid in Bitcoin for it, and why not?

Bitcoin has the potential to appreciate; it has been doing so since its launch in 2009. It is a great tool for investment, so as a business, you are not only getting paid but investing, too. It is safe, as transactions are completed using pseudonymous wallet addresses, protecting your business and your customers.

The drawback is that it is quite volatile and expensive; one bitcoin, as of March 6, 2024, is worth about $67,000. This is no problem anyway, as Bitcoin has many younger siblings called Altcoins. Different types offer different functionalities for your businesses, some with less volatility and prices in different ranges.

Ask anyone, and they’ll immediately tell you that Bitcoin (and other cryptocurrencies) are the future. So you can bank with credit cards from the 50s or teleport your business to the future with Bitcoin and gang.

2. It’s safe but not safe enough

The fact that billions of credit cards are in use worldwide and process billions of dollars in transactions year-in-year-out is why they remain targets for no-do-gooders. As credit card technology improves, so does the tech to hack these cards. With different devices being uncovered everywhere, from gas stations to ATMs, all designed to steal information to access these cards, continuing to use them just puts your customers at risk.

Credit card fraud was the most common form of identity theft in 2023, with just under 500,000 reported cases in the United States alone – let that sink in.


Conclusion of Credit Cards for Businesses

Nobody knows any business like the business owner; only they know the types of clients they serve. If that audience is credit card-wielding, then such businesses may decide to educate their audience on better payment alternatives. Ultimately, there’s no one answer to this question; the decision to continue or not can have positive results for different businesses, and only owners willing to make that change can know for sure.