Businesses have accepted credit cards since Frank McNamara and his business partner Ralph Schneider invented the Diners Club Card in the 1950s. It was the first credit card and was a revolutionary idea that eliminated the need to carry cash with you. It’s safe to say that the idea was adopted because credit cards are still in use today, in fact, they have become mainstream today, with 2.8 billion cards currently in use and VISA alone accounting for $226 billion. Global transactions.
So, it’s a good idea, it’s a viable idea, so why bother thinking about whether companies should accept it? Does it present a danger of replacing its obvious advantages, or is there a better alternative? Let’s find out by exploring the pros and cons of credit cards and whether they are for or against in today’s business world.
advantage
Advantages of credit card for business
Here are the advantages of using credit cards and why many businesses still use them.
1. It’s accepted by everyone, everywhere
The first reason is that all other businesses still use them. As mastercard’s slogan says, “There are some things money can’t buy.” For everything else, you can use mastercard.”
From walk-in malls to online stores to pop-up stores and casinos reviewed here, everyone accepts credit cards. The relief of knowing and not having to second-guess whether your money will be accepted here or whether you’ll have to jump through hoops at the checkout counter is so calming and is one of the priorities any business seeks to make success should be affordable for customers. However, Sergio Zammit says that while many casino sites accept credit card deposits, some add hidden fees or have insecure platforms, so be careful to only enter credit card details on trusted sites.
As a business owner, especially one just starting out, the next thing you want to address after brainstorming for your small business is that there are a number of ways you can ensure convenience for people who want to visit your business and do so multiple times. No, the ease of payment is there, and that’s certainly one thing that credit cards bring.
2. It’s much safer than carrying cash
Credit cards aren’t the safest option, but they’re certainly safer than carrying cash around. It’s worth noting that the technology that powers these cards has been evolving and can now avoid many of the pitfalls that plague credit cards. These technologies include, but are not limited to, the following:
A. EMV chip technology
One of the most common problems when using credit cards to make purchases is counterfeiting. Credit cards that use old magnetic stripe technology can result in the information on the magnetic stripe being stolen or forged for unauthorized use. With this new EMV chip technology (on behalf of Europay, MasterCard and Visa, the three companies that brought it to the table), stealing information from a card is almost impossible.
It works by generating a unique code for each transaction, unlike a magnetic strip where card numbers are shared when used. The code is authorized to be used once and is immediately blocked when someone tries to use it at another time.
B. Contactless payment
To further reduce the risk of fraud, cards such as Diners Club are equipped with near-field communication (NFC) technology as standard. In short, it allows the card to communicate wirelessly with nearby point-of-sale devices. Processing payments this way means less data is shared, your card is less likely to fall into the hands of foreigners, and just as importantly, there is less time to wait in line.
C. Two-factor authentication
If you’ve ever tried to check on any of your favorite online shopping sites or apps, you’ve most likely received a text message or email, or had to enter a code from your authenticator app. This process is called two-factor authentication (or 2FA), and it acts as an additional layer of security to ensure that transactions are facilitated with the correct permissions or by the account holder.
D. Trading limits
Credit cards allow owners to set different limits on transactions completed online, at point of sale, contactless, or using ATMs. These limits can be set at any time on the mobile app and immediately block transactions that exceed these limits, while sending you notifications in case of violations.
With cash, your money is gone, with little chance of getting it back.
3. Establish an online presence
From a business perspective, accepting credit cards allows your business to expand from other brick-and-mortar businesses to an online business almost effortlessly. In addition to accepting credit cards that build credibility for your brand or business, being able to easily process customer orders and receive payments sent from customers’ homes can also solidify your online presence and guarantee to drive sales.
shortcoming
Disadvantages of credit card for business
Here are some reasons why businesses should stop using credit cards:
1. There is Bitcoin
If only there were something that could process transactions as quickly and securely as a credit card. News: Yes; It’s called Bitcoin, and you can buy a lot of things with it. Casinos, stores, gas stations, whatever you can think of, there are businesses willing to pay with Bitcoin, and why not?
Bitcoin has the potential to appreciate; It has been doing so since its launch in 2009. It’s a great investment vehicle, so as a business you not only get paid, but you also get to invest. It is secure because transactions are done using a pseudonymous wallet address, which protects your business and customers.
The disadvantage is that it is volatile and expensive; As of March 6, 2024, one bitcoin is worth about $67,000. In any case, this is not a problem because Bitcoin has many younger siblings called altcoins. Different types offer different features for your business, some of which are less volatile and have different prices.
Ask anyone and they will immediately tell you that Bitcoin (and other cryptocurrencies) are the future. So you can bank with credit cards from the 50s, or use bitcoin and gangs to beam your business into the future.
2. Safe but not safe enough
In fact, there are billions of credit cards in use worldwide and processing billions of dollars in transactions year after year, which is why they remain a target for do-nothings. As credit card technology has improved, so has the technology to crack those cards. There are devices everywhere, from gas stations to ATMs, all designed to steal information to access these cards, and continuing to use them only puts your customers at risk.
Credit card fraud is the most common form of identity theft in 2023, with just under half a million cases reported in the US alone – let’s dive into that.
conclusion
Corporate Credit Card Conclusions
No one knows any business better than the owner; Only they know the type of customers they serve. If that audience uses a credit card, then such businesses may decide to offer better payment options to their audience. Ultimately, there is no one answer to this question; The decision to continue or not to continue has a positive outcome for different businesses and can only be determined by the owner who is willing to make the change.