Industry News

02/09/2009 - It is a common misconception that only business-to-consumer (B2C) companies such as restaurants and retailer stores need credit card processing capabilities, as consumers tend to be one of the primary credit card-using segments.

However, this misconception neglects the large market segment of business credit cards, which are often used to help finance a company, especially during its startup days.

According to the Ewing Marion Kauffman Foundation, approximately 58 percent of surveyed businesses relied on credit cards to finance their business in the first year of operation.

"Credit cards tend to appeal to small businesses for several reasons," read the recent Kauffman Foundation report. "They help small businesses manage their finances and streamline payments, and they are easier to get than traditional bank loans or government business grants. Credit cards smooth revenue streams, especially at the startup phase of operations."

Consequently, accepting credit cards is just as important for the business-to-business (B2B) segment as it is for the B2C segment; companies that provide business products such as equipment or software - or even services such as website design or accounting - will likely encounter a large number of clients who expect to be able to pay by credit card.