New Credit Card Spending Trends

For those with businesses that process credit card payments, what changes have you observed in the spending habits of your customers who use credit cards vs. paying by cash or check?

As we all know, people are saving a lot more in the past year. I would deduce that as part of that trend, people are also making sure that they aren’t spending money they don’t have, as with credit cards. Of course, there are exceptions, but I’m trying to look at the big picture.

On a personal note, I’ve noticed a sharp drop in the number of customers who use credit cards to pay for my carpet cleaning services. In my battle to reduce expenses, I was thinking about dropping the entire credit card processing option, and only accepting checks. So I deciced to look at the numbers:

Last quarter, my average sale was 50% greater for customers who used credit cards compared to those who paid by check. Even during my worst month, the ROI on “average sale increase” to “total credit card processing fees” was still 300%, usually well more than that.

It seems despite a lack of volume of customers who are paying by credit cards, those that do make it worth it for me to continue offering the option. What have your experiences been?

Big mistake. Not offering credit cards will tell me you're an amateur or a company that fears chargebacks.

"We accept cash or check only". HA HA really? Sorry, I'm going elsewhere. Companies who fear chargebacks are often unscrupulous and demand "cash only" so disgruntled customer's can't come back and dispute.

I can't imagine running any business without credit cards ... doing so would be taking a giant leap backwards.

I think that the service business like carpet cleaning or landscaping is a little different. I pay my landscaper with a check every time. I don't think I have ever paid by credit card whenever I had anything done or completed at my house. This includes landscaping rock delivery, firewood delivery, landscaping, maid service, carpet cleaning, small contractor jobs.

I do believe that most of the places do take credit cards but the person doing the work can never take a credit card. I would have to call the office and give them my number and it's so much easier to write a check and hand it to them while they are waiting.

I always ask if I can get a better deal paying cash, usualy you can.


CC companies take a cut, why pay them when you don't have to.


For the business we pay all our subs with a check, and quickly. You can usualy get a better deal and faster work if they know their is a check waiting for them at the end of the day vs having to wait a few weeks.

It depends on the individual scenario, but from a consumer perspective and dealing with a company for this first time? I would want the protections offered by a credit card purchase. If problems arise with a credit card purchase, you can dispute payments which usually triggers an investigation. I mean you try and do your due diligence with companies, but sometimes stuff happens. I would enter a first time deal with an eye on the worst case scenario, and with cash/check, you are likely on your own.

When dealing with vendors in regulated industries (like generals, electricians, plumbers, attorneys, etc)? You can pursue that angle, most vendors want to protect their license. So if a cash discount is possible, that may be the way to go.

PhxMJ, perhaps I misspoke, but I AM still continuing to accept credit cards.

If someone asks for a discount for paying cash, I happily give it to them. I actually heard of one company that offers three prices: cash, check, or credit card. Personally, I don’t think it would be wise to play games like that with my customers, so I only worry about it if they ask.

In any case, my philosophy is to not charge more up-front for paying by credit card. Even in this economy, the numbers clearly show that people are still spending a sufficiently greater amount on me with credit cards to more than compensate for the cost of offering the convenience. I was curious if anyone else is still making the same observations on spending habits.