CNBC reports the United States has the worst credit card fraud in the world, and the pandemic is playing a key role in the huge, ongoing growth in fraudulent card activity. Experts are warning present regulations are insufficient to protect small businesses from the fallout.
Cash is usually lower cost for businesses to handle, compared with the fees associated with processing card transactions. Overall, more money from a cash transaction goes directly to a company or individual, and the use of physical money encourages tipping. Especially for small businesses and those operating on narrow profit margins, these differences can decide success or failure in a challenging market. Adding the cost of fraud on top can create a serious problem for business owners.
