That Card Costs Me - Support Local Small Business By Choosing Payment Method Mindfully

Paying with a card might be free for you, but it costs the merchant.
Do you know how much using your card costs me?

I accept payment for massage treatments at the clinic in a variety of forms: cash, cheque, debit, MasterCard, and Visa. Some of these methods cost me to deposit into my account, others don't. 

Do you know how your payment choice affects local small business owners? 

For my micro business the breakdown is like this:

• Cash = Remember that stuff? Those bills are free for me to accept/deposit.
• Cheque = A bit old school, but works like cash.
• Debit = 10 cents, no matter the size of the transaction.
• Credit = 2.8% of transaction total. The amount I pay our credit card payment provider is approximately $2.80 for every one hour massage treatment. Part of this percentage is charged on top of the tax I collect. Sneaky, aren't they?

 

So, what?

I operate a tiny little business. When you function at this scale, every dime of revenue and expense is accounted for. Although it can be helpful to have business expenses for tax purposes, there comes a point when you have enough expenses accumulated and just want to see income simply coming in. Last year I paid nearly $600 in point of sale fees; that same amount could have flown me to Maui for a continuing education course to further my professional skills. Receiving payment by cash, cheque, and debit keeps more money in my pocket, so I can invest it into growing my business.

I am grateful for all paying customers, and will accept any form of payment that they provide, but if it doesn't matter to you whether you pay by credit, debit, or cash, then I invite you to consider how your choice of payment method affects me. When supporting small businesses in your community, why not ask if they have a preferred payment method? You might just be helping them actually put more money directly in their pocket, and that is a very sweet thing indeed.

See you in the clinic,
Dana