Research has shown that people are willing to spend more—as much as 83% in some cases—when paying with a credit card instead of cash.
Yes, I know there are fees associated with credit card processing. Some as high as 6% of the purchase amount. And it’s worth it!
Let me show you the simple math!
| Average Cash Dollar Sale | Average Credit Card Dollar Sale | Average Income Cash | Average Income Credit Card Minus 6% | Additional Income With Credit Cards |
| $10.00 | $18.30 ($10.00 times 83% increase) | $10.00 | $17.20 | $7.20 |
What if they only spend 50% more
| Average Cash Dollar Sale | Average Credit Card Dollar Sale | Average Income Cash | Average Income Credit Card Minus 6% | Additional Income With Credit Cards |
| $10.00 | $15.00 ($10.00 times 50% increase) | $10.00 | $14.10 | $4.10 |
What if they only spend 30% more?
| Average Cash Dollar Sale | Average Credit Card Dollar Sale | Average Income Cash | Average Income Credit Card Minus 6% | Additional Income With Credit Cards |
| $10.00 | $13.00 ($10.00 times 30% increase) | $10.00 | $12.22 | $2.22 |
What if your average dollar sale is $100.00? The impact is even greater!
| Average Cash Dollar Sale | Average Credit Card Dollar Sale | Average Income Cash | Average Income Credit Card Minus 6% | Additional Income With Credit Cards |
| $100.00 | $130.00 ($100.00 times 30% increase) | $100.00 | $122.20 | $22.20 |
| Average Cash Dollar Sale | Average Credit Card Dollar Sale | Average Income Cash | Average Income Credit Card Minus 6% | Additional Income With Credit Cards |
| $100.00 | $150.00 ($100.00 times 50% increase) | $100.00 | $141.00 | $41.00 |
| Average Cash Dollar Sale | Average Credit Card Dollar Sale | Average Income Cash | Average Income Credit Card Minus 6% | Additional Income With Credit Cards |
| $100.00 | $183.00 ($100.00 times 83% increase) | $100.00 | $172.00 | $72.00 |
Here’s the easy math to see how much money you left on the table last year!
Multiply your total gross sales by 1.40. (I’m using a 40% increase as an average between zero and 83 percent)
Now take the difference of last years gross revenue and the projected increase and multiply it by .06 (6 percent).
Finally subtract the 6 percent (which is a high rate by the way) and you will see the potential lost income from not accepting credit cards!
Here’s the formula using numbers.
| (Year) Gross Sales | $100,000.00 |
| 40% Increase | $140,000.00 |
| Difference | $40,000.00 |
| Minus 6% Processing Fees | ($2,400.00) |
| Net money I missed the opportunity to have | $37,600.00 |
Accept credit cards:
- Increase revenue
- Increase net income
- Give better service to your customers