American families are projected to spend over $1.8 billion on Thanksgiving meals this year. According to data based on research from IHL and Nilson, if all of these purchases were made using credit cards, merchants could save between $43 million and $57 million in processing costs compared to handling the same amount in cash. Processing this volume in cash would cost retailers more than $85 million.
"As we prepare to gather with our families and friends for the holidays, credit cards are making those meals a little more affordable," said EPC Executive Chairman Richard Hunt. "Without electronic payments, the hidden costs of cash would drive up expenses for small businesses. The advantages of credit cards are especially meaningful for small businesses during the holidays. When you use your card to buy Thanksgiving groceries, you’re not just saving time and earning valuable rewards like cashback, you’re helping your local store operate more efficiently in a competitive market. That efficiency helps keep prices reasonable for everyone."
Research from IHL Group indicates that grocery stores pay about 4.7% to process cash transactions due to labor-intensive procedures and security requirements needed to handle and deposit funds. Businesses also incur extra costs related to counting, managing, and transporting cash.
Although some large corporate retailers claim that credit card fees increase their expenses, industry data shows that average acceptance rates for credit cards have stayed close to 2% over the past ten years. Electronic payment systems can help businesses by improving sales processes, enhancing operational efficiency, strengthening data security measures, and reducing overall costs.
The Electronic Payments Coalition believes that investing in new technologies and establishing national data security standards will help create a stronger payment system.