Should I Use a Credit Card Processor?

Should I Use a Credit Card Processor?

For solopreneurs and small businesses, you may start by only accepting cash payments. However, the U.S. Government Accountability Office reported that 82% of U.S. adults “have at least one credit card in their wallets.” So, at some point, clients will want to pay via Zelle, PayPal, or Venmo.

For occasional transactions, this is fine. But once your volume increases, it’s time to consider a credit card processor. For a local service professional, you can take payments from your smartphone while booking clients for their next appointment from the same platform. Likewise, a small business owner who wants to reach the next income goal could expand online to increase sales by accepting credit cards.

Deciding to use a payment processor could also solve problems. Suppose your invoices need to be paid on time. Select a processor that integrates with your invoicing tools or offers an invoicing application. Then, you can reduce your DSO (days sales outstanding) by letting customers pay instantly via credit card or an ACH payment.

Still, if you only have an occasional request for credit card payment options, like less than weekly, you can get away with PayPal, Zelle, or Venmo.

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