Are Credit Card Fees Driving a Return to Checks and Cash?

Small businesses are increasingly scrutinizing credit card processing fees, which can significantly impact profits. While checks and cash haven’t made a full comeback, many business owners are looking for ways to reduce payment costs.

How Much Do Credit Card Fees Cost? 

Most merchants pay between 1.5% and 3.5% per credit card transaction.

Example: Auto Body Shop

An auto body shop processing $214,000 annually in credit card payments at a 3.5% processing rate would pay approximately $7,500 per year in credit card fees.

That’s $7,500 that could otherwise be used for employee wages, equipment upgrades, marketing, or business growth.

Are Checks Making a Comeback?

In some industries, yes.

Businesses that handle large invoices—such as contractors, auto repair shops, property managers, and professional service firms—are increasingly encouraging customers to pay by check or bank transfer to avoid processing fees.

Checks can save businesses hundreds of dollars on large transactions, though they require more manual processing and can take longer to clear.

What About Cash?

Cash remains attractive because there are no credit card processing fees and funds are received immediately.

However, cash also comes with challenges:

• Security risks
• Additional accounting and handling time
• Customer preference for card payments

Many consumers now expect the convenience of paying with a card or mobile wallet.

The Real Trend: Lower-Cost Electronic Payments

Rather than returning to paper checks, many businesses are encouraging:

• ACH bank transfers
• Debit card payments
• Bank-to-bank payment apps
• Real-time payment systems

These options often cost significantly less than traditional credit card transactions.

Passing the Fee to Customers

Some businesses are choosing to pass credit card processing fees directly to customers through a surcharge.

For example, if a customer pays a $1,000 auto repair bill with a credit card and the processing fee is 3.5%, the customer may see an additional $35 surcharge on the invoice.

This allows the business to recover its payment processing costs rather than absorbing them.

Financial Literacy

The set of skills needed to handle money wisely, invest effectively, and plan for a comfortable future is known as Financial Literacy. Did you know that these concepts can be introduced as early as ages 3 to 5, while foundational money habits are largely set by age 7.

Financial education is life long, so start now!

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Jeff ‘Tigger’ Erhardt & Rebecca ‘BEC’ Wanner are passionate news broadcasters who represent the working ranch world, rodeo, and the Western way of life. They are also staunch advocates for the outdoors and wildlife conservation. As outdoorsmen themselves, Tigger and BEC provide valuable insight and education to hunters, adventurers, ranchers, and anyone interested in agriculture and conservation.

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