With all the chatter about consumer spending over Black Friday weekend, my thoughts turned to small businesses. More specifically, small businesses and credit card processing (are you surprised?). With a great influx in slaes over the holidays, I wondered how much extra small businesses were paying in unnecessary credit card processing fees? Turns out, it’s […]
With all the chatter about consumer spending over Black Friday weekend, my thoughts turned to small businesses. More specifically, small businesses and credit card processing (are you surprised?). With a great influx in slaes over the holidays, I wondered how much extra small businesses were paying in unnecessary credit card processing fees?
Turns out, it’s a lot. About $340 million that could be avoided easily.
Over Black Friday weekend, a record 226 million shoppers came out and spent an average of $398.62 per person over four days. This spike in sales represents about 12% of what retailers will make over the holiday season. What percentage of these sales actually went to small businesses vs big box retailers? The US Business Census reports that about 26% of sales go to small businesses (defined as annual revenue under $10 million).
Small businesses are hurting from the effects of prolonged recession, and they need to keep every penny they can…especially over the holiday season. With more than a quarter of holiday shoppers paying by credit cards, small businesses feel the hit of credit card processing fees during the holiday season more than ever. Unfortunately, small business owners pay an average of 2.65% to process credit cards…ouch! This should be much closer to 2% for card present transactions. However, owners get mired in fine print, hidden fees, and sleazy salespeople when they’re choosing a merchant account.
$340 million is LOT of money. Just how much?
-$333 million=Expected total US foreign aid to Mexico in 2012
-$340 million=Total in Swiss bank account of deposed Egyptian dictator’s sons
-$400 million= Total SBA loans to small businesses in June 2010 (down from $1.5 billion!)
Luckily, on FeeFighters, business owners can comparison shop competitive merchant accounts on their own time. The marketplace place yields about 40% in savings for small businesses. Taking online payments is also easier than ever with Samurai.
It’s reassuring to know that easy savings that go straight to the bottom line are only a click away. Ho, ho, ho!
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