Small business owners are dissatisfied with credit and debit card payment processing, according to research from J.D. Power.
Despite 94% of small businesses accepting these payments, overall satisfaction with merchant services ranks lowest across all customer service aspects. On a 1,000-point scale, satisfaction with credit card processing scored 692 points, while debit cards scored 694 points.
“Part of that is driven by demographics,” said John Cabell, Managing Director of Payments Intelligence at J.D. Power, in a prepared statement. “Younger, newer business owners are more apt to accept a wide variety of payment types and have higher overall satisfaction with their merchant services providers. However, we’re also seeing some challenges across the board with debit and credit when it comes to delays in account funding, cost and fees and fraud management.”
Credit cards, the most common payment method, still pose fees challenges for small businesses. Although debit cards offer lower interchange fees, their transactions take longer to settle, impacting cash flow.
More Payment Options, More Customer Satisfaction
With high inflation and tight budgets, consumers are more conscious about their credit card use. With the proliferation of new payment methods, small businesses should capitalize on this fact.
Look at BNPL, which was the main driver behind record-level holiday spending last November. According to data from Adobe, small business owners surveyed said satisfaction scores were highest when processing BNPL payments. What’s more, merchant service satisfaction was high as more payment options were available.
In the end, this benefits both small businesses and consumers, offering flexibility and improved payment processing experiences.