I currently teach group fitness 4-6 times per week and have three regular clients that I see twice per week for personal training. I have other clients that float in and out. In the past, I have received payment via checks that have bounced… which makes things awkward when telling the client their check bounced. I’m considering no longer accepting checks but know that I can’t be a cash only entity. I’m considering jumping the necessary hoops to accept credit cards but am wondering if it is worth it for such a small business.
I do not know if anyone can definitively answer this. You need to determine how much less you will make due to the merchant fees versus the convenience for you and your clients. Another option is to consider direct money transfers from a smart phone instead of a check, pretty easy and many people now have that app. I have only taken checks or cash, but have never had a check bounce, so I guess I have been lucky.
I decided to accept credit cards after I started teaching groups with participants floating in and out. The vast portion of my business is payment by check, and I can count the number of checks that bounced in all my 20 years on one hand, and then they were an honest mistakes.
I use Square up for my credit card business with my iPhone. The application process was very easy, no hoops to jump through. I use is maybe twice a month, if that much, but since the fee is transaction-based, I really do not have any overhead.
In this day & age where people buy a cup of coffee using a credit card – my simple answer is yes. Everybody is looking for “rewards points.” Checks & cash, unfortunately, are on their way out as a method of payment.
Do your P & L. If the profit exceeds the loss, then it would be a good idea to open up the option for credit card payment. Credit cards, as Paul suggests, are perhaps the most common form of payment for goods and services. Just make sure that you don’t make yourself profit negative by offering this option.