Topic: sba.gov on the pros and cons of accepting debit\credit cards but with bitcoins (Read 775 times)

 The SBA has not published anything about bitcoin transactions I know of, so to save taxpayers $ in a time when the government can't afford to stay open I offer this simple updated version of a guide for small business to consider and weigh the benefits\risk of payment methods as a public service.
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Enjoy.


Should your business accept debit and credit cards? What are the costs and benefits? Choosing to accept debit and credit card payments is a big step but often necessary in running a successful business. It is important to be aware of all the benefits, downfalls, and laws that regulate their use.

Accepting Card Bitcoin and ^Credit Card Payments

Although the battle continues between debit and credit cards as the best payment method, businesses don't have to pick a side because it is easy to accept both forms. Both cards and ^Bitcoin are convenient, flexible, and have become ^or are becoming increasingly important in business commerce. In addition to the demand for card ^and online payment services in the traditional business environment, accepting these payment methods are necessary for telephone and online sales.

Accepting Credit Cards

Credit cards allow customers to make payments or purchases by drawing from a reserved line of approved credit. Credit cards are considered the preferred and most popular purchasing power, especially for people with limited funds or those who often make large purchases. If you're considering accepting credit cards, be sure to go over the pros and cons adding this form of payment...

Pro Credit cards are easy to use and make paying bills or making store purchases hassle-free for customers.

Pro The convenience of using credit generally increases the likelihood of consumer 'impulse purchases,' and ultimately contributes to an increase in a business' average sale.

Pro A business that accepts credit cards gives customers another payment option. Since most businesses accept credit, it's possible that your business may lose customers if you only accept cash.

Con Compared to other forms of payment, credit cards come with an increased risk of fraud. However, through laws like the Fair Credit Billing Act Download Adobe Reader to read this link content, credit cards offer additional protection and flexibility for businesses dealing with fraudulent charges or defaulted payments.

Con Businesses see small processing fees for each credit card transaction. While you wouldn't encounter such fees through cash transactions, it's argued that the increased sales volume that credit affords makes up for these fees in the long run.

Con Credit card transactions add another layer of detail to your business's bookkeeping practices.

Accepting Debit Cards Bitcoins

Debit cards Bitcoins let customers make payments to a business by withdrawing funds directly from their personal checking account bitcoin wallet. This allows customers to pull from their expendable income, not a line of credit. If you're considering accepting debit cards bitcoins, be sure to go over the pros and cons adding this form of payment...

Pro Debit cards Bitcoins give customers a sense of security that they are not spending above their means. Some customers spend more with credit cards because they have a high limit that they can take time paying back. However, others who don't like to acquire any debt feel more confident making purchases knowing they have the available funds to pay for their purchase as they would with cash. This may prompt them to spend more than they generally might with a credit card.

Pro Debit cards Bitcoins are used when a customer is sure they have the available funds to make a purchase. Compared to credit cards, debit cards payments generally have a faster approval time, which means faster access to revenue ^ Debit cards bitcoin transactions are confirmed in minutes, not days, and are as permanent as cash without the risk of counterfeit bills.

Pro Accepting Debit cards Bitcoins gives your business access to consumers that do not have credit cards.

Pro Because the debit bitcoin transaction process is similar to a cash transaction, the fees that a business pays on debit transaction are ^much much smaller than credit card or check fees, ^and are optionally adjustable with bitcoin allowing an important transaction to be given priority by paying a small premium to the network.

Con While Debit cards Bitcoins fees are usually less expensive than credit or check fees, they can still add up ^(like a bottle cap collection).

Con Choosing to accept Debit cards Bitcoins requires the minor, but additional, step of adding a additional software to the payment terminal.

Want to Accept Debit cards Bitcoins and Credit Purchases?

To enable your business to accept Debit cards Bitcoins and credit card purchases, you'll need to establish a Merchant Account. A Merchant Account sets up your business to receive card payments and chargebacks as a business's designated bank account. Obtaining merchant account status is not always easy, so advertising your business as a Merchant Account holder who accepts card payments may increase your credibility. For more information see Managing Finances. This is not necessary if the business want to hold the bitcoin.