In past years, the vast majority of businesses accepted credit cards through payment processing technology. However, the percentage of businesses who accept electronic payments has dropped significantly in recent years, suggesting that many retailers may be losing a percentage of their customer base.
More than 30 percent of small business owners currently don’t accept credit card or debit card payments, according to a recent report from the National Small Business Association. In 2010, less than 10 percent of small business owners didn’t accept credit cards or debit cards, indicating that recent advances in technology have led many business owners to abandon a highly efficient mode of credit card processing.
David Ickert, chairman of the National Small Business Association, noted in an attached statement that a very large amount of businesses have abandoned their credit card wireless terminals in light of security fears. More than 90 percent of small-business owners are at least somewhat concerned about the prospect of cybersecurity.
Security concerns are common among business owners
Another study, conducted by Bank of the West and Harris Interactive, supported the theory that business owners are preoccupied with the security threats that accompany migrating their products and services online – suggesting that many managers should investigate payment processing options that assure PCI compliance and offer high levels of security.
Roughly 19 out of every 20 small-business owners take steps to prevent fraud, according to a recent study conducted by Bank of the West and Harris Interactive. However, many are still concerned about the potential for data to be corrupted and misused, such as credit card numbers once payment has been processed through an unsecured terminal. More than 50 percent of small-business owners who have never experienced fraud still feel that they’re payment collection accounts are vulnerable.
Michaelle DiGangi, executive vice president of small and medium sized enterprise banking at Bank of the West, noted that many small businesses have a more direct need for fraud prevention technologies – such as payment processing terminals that are PCI compliant – than their larger counterparts.
“Small businesses are particularly susceptible to fraud because they have fewer resources,” DiGangi said. “Yet, the impact of the resulting losses is usually much greater than for larger businesses. Through our close relationships with business owners, we’ve seen first-hand how devastating fraud can be on them. Fortunately, there are precautions – which in many cases are fairly simple to execute – that owners can take to better protect themselves from being victimized and improve the overall security of their organizations.”Back To Blog