This Halloween, credit cards are again showing their value for small businesses and Trick-or-Treaters. The average household spends $108 on Halloween decorations, costumes, and candy. That came out to $12 billion in Halloween spending last year.
If everyone used their credit card for Halloween purchases, businesses would save more than $300 MILLION compared to if those purchases were made in all cash. That is because cash has a hidden cost greater than card acceptance.
Research from the IHL Group, a research and advisory firm specializing in the retail and hospitality industry, shows grocery and warehouse stores pay between 4.7%-5.5% to process cash transactions. The National Association of Convenience Stores (NACS) just this year noted cash “isn’t free of expense.” Those expenses include equipment costs, security and potential theft. NACS even estimates convenience store staff spend as many as 20 paid labor hours a week just counting money.
So, when you’re stocking up on candy to hand out to Trick-or-Treaters this year, don’t forget that the money merchants save by accepting credit card payments helps keep prices lower than they would be in a cash-only world. Don’t take our word for it, hear from small business owners about the importance of credit cards and why they oppose the Durbin-Marshall Credit Card Bill.
By Daniel Maloney, Sol Cacao
“…In the early days of Sol Cacao, we used credit cards to purchase equipment, supplies, and inventory. We were also able to manage cash flow by utilizing flexible payment terms and reward programs, allowing us to reinvest profits back into the business. This financial flexibility was crucial for Sol Cacao’s growth, especially during the unpredictable times of the pandemic. When the world shut down, our business pivoted to online sales. By offering electronic payment options, we were able to continue processing transactions that were easy, convenient, and safe…”
“…Small businesses like mine need policies that can help us build on our success. There are a few reasons why I am concerned about the Durbin-Marshall bill being pushed in the Senate.
First, the legislation could tighten funding that banks and credit unions use to extend loans to small businesses. This means that banks and credit unions would have to raise interest rates and make credit less accessible to small businesses, making it harder to start a business.
The bill would also put at risk the rewards programs that many of us use to fund business expenses. If the Durbin- Marshall bill becomes law, University of Miami research predicts that small businesses will lose $1 billion in rewards. That could make all the difference for small businesses.
Finally, by introducing less secure payment networks to the equation, this bill could make the payments system more vulnerable to scam attempts and data breaches…” “…Congress should focus on ways to better support small businesses instead of pushing legislation that would upend what we rely on — like access to capital, credit card rewards, and hassle-free payment options for our customers…”
Founded by brothers Dominic, Nicholas and Daniel Maloney, Sol Cacao is a bean-to-bar chocolate manufacturer located in the heart of the South Bronx and a member of the Small Business Payments Alliance. Sol Cacao specializes in crafting single-origin dark chocolate from beans sourced from small family farms around the world. The company is dedicated to creating a positive impact in the community by generating specialty chocolate manufacturing jobs and expanding the chocolate-making sector in the Bronx.
