Acceptance Matters, And Now We Know By How Much

What's Next In Payments®
3:02 PM EST January 22nd, 2013

Recently, MasterCard partnered with Kaiser Associates to conduct a study to quantify the value of commercial card acceptance. While the results were not unexpected to MasterCard — card acceptance at the point-of-sale for commercial transactions is 37 percent less costly than using other collections methods — B2B suppliers might find that data surprising.

Other research highlights include:

*Card acceptance provides a similar-sized net benefit regardless of the funds transfer tool it replaces;

*Early payment discounts are often less efficient for suppliers than offering a card payment option; and

*The bulk of value from commercial card acceptance lies in its use as a prepayment tool – providing revenue assurance against bad debts.

“Supplier acceptance is largely hindered by an education gap,” says Ed Downs, senior business leader, U.S. Commercial Products for MasterCard. “We have found that many merchants are just not aware of the financial benefits of card acceptance, but are willing to increase acceptance if presented a business case demonstrating the value. This research provides that business case.”

Click here to download the white paper on MasterCard’s Acceptance Matters Series – Part 1: B2B.

For more from Downs on the topic, check out his external MasterCard newsroom blog on the white paper.

Topics:
Comments
Also by This Author
What's Hot
Alternative Financial Services
Silk Road Collaborator Sentenced To Two Years
Merchant Innovation
Rent-The-Runway Raises $60M, Eyes Real-World Commerce
Merchant Innovation
Target Restructures to Boost Business Intelligence
Europe
UK Payments Council: Let’s Add More Data To Electronic Payments
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
International
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
Karen Webster
What Payments Will Look Like In 2015
Alternative Financial Services
Silk Road Collaborator Sentenced To Two Years
Merchant Innovation
Rent-The-Runway Raises $60M, Eyes Real-World Commerce
Financial Inclusion
Giving Goes Mobile
View All Articles ››