Contrary to popular belief, businesses doing more traveling and networking do not increase their sales as fast as many claim. Sometimes spending within your means can be more of an advantage than many first think. This structure keeps your money in your pocket instead of in the pockets of the bank.
Number one reason how a debit card could benefit you in your bottom line is by using it there are normally no charge as it would be with a credit card. This savings can be realized much more instantly than others because it is immediate. Imagine paying hundreds of dollars in fees every time you use that credit card. Credit cards are sometimes better for large purchases. Because debit cards are more immediate withdrawals, it also keeps your business within budget. In business, it is imperative that owners know exactly where each dollar is going and because use of a debit card means no added monthly obligation, that savings remains cash on hand.
As a small business owner, I have been exposed to times where I have checked my business balance and forgot about a check that still outstanding or a credit card purchase which may post later that month. Nothing harms one’s reputation more than to be informed that a business check that was written has been returned. That business has to deal with the stigma that follows the returned check. We all should be able to agree just how vital a good reputation is in the business world.
Another great reason how using a debit card can increase your bottom line is the cost of bank overdraft fees or having to tie up capital to set up a separate account as a safety net for those times we forget about that check which has yet to clear. Because this happens more than many wish to admit, and can run into the hundreds for this bank charge, use of debit cards could eliminate this cost completely.
While credit cards have a place in conducting business, it can not be overstated how a debit card could prove to be a very valuable tool as well.