That depends on you. Here’s some numbers to consider:

  • Business revenue from credit cards is $40,000
  • Average effective rate is 2.5% ($1,000 per month in fees)
  • Owner take-home net-profit $40,000 per year

Eliminating the $1,000 per month in fees would increase take-home net-profit by $12,000 per year. On a $40,000 take-home that is a 30% increase. I’d say that’s worth the headache.

But what if a few customers end up leaving? Let’s explore that…

5 customers are angry and vow to never come back. The business profit margin on sales is 20%. Those five customers spend an average of $75 per month each. On that total it’s less than $94 in take home profit… that’s assuming they spend that every month and the profit margin is truly 20%.