Hook up no credit cards wanted
But there's another cost that most entrepreneurs are not aware of, and it could be putting them at serious risk for fraud.
According to a new poll conducted by Manta, 56 percent of small companies still do not accept chip-based credit cards, and a whopping 65 percent of business owners are not familiar with the fraud liability shift that went into effect two years ago this month.
So in practice, pretty much any merchant that takes plastic that has a minimum threshold sets it the same (and lower than ) across all card types. Since a legal settlement in 2013, merchants have been able to charge their customers additional surcharges for paying with a credit card. Merchants can only charge so high a fee relative to the average annual cost of transactions.
You may also need to update (or replace) your POS system and ensure that all the new components are compatible with your accounting software and other tools. But this is also an opportunity to invest in more secure and more advanced technology--and give your customers more payment options.In fact, according to Manta's survey, 77 percent of business owners who have made the switch said it's been a smooth transition.While it may be easy, however, switching won't necessarily be cheap: card readers can cost hundreds, not to mention the cost of software upgrades, tech support, and staff training.And on top of all that, the law varies from state to state.Visa has a flowchart (PDF) for their merchants that lists the ten states where surcharges are illegal.