Donna Genie argues small businesses lose money by resisting credit card fees. The fees are tax-deductible and small enough to absorb by raising prices slightly, while rejecting cards drives customers away. Treat the fee as a normal cost, not an enemy.
Most businesses spend hundreds or even thousands of dollars marketing to attract a single customer. You got ads, social media, promotions, all these things to get people in the door. But then when a customer wants to pay by credit card, you're frustrated about a $3 processing fee? That's not smart business math. That's just leaving money on the table. Your processing fee is a cost of doing business, just like the rent or the utilities. When a customer wants to pay by card, they're telling you their preferred method to pay. Don't create friction by being difficult about their payment method. Next, those fees are tax deductible. You're literally getting money back at the end of the year by accepting the cards. So stop thinking of them as a pure expense. That $3 actually only costs you probably less than $1.50 or $2. Next, customers expect to make payment by credit card now. By hesitating or complaining about processing fees, you're signaling that you are an outdated business. Most consumers want convenience. Simply build that 3% fee into your pricing structure. Raise your prices marginally. Most customers won't even notice. What they will notice is a smooth professional transaction. If your product costs $100 and the processing fee is $3, just price it at $103. Your profit margin stays exactly the same, but you have eliminated any mental friction around payments.
