Some small businesses are already taking the plunge. I get to write one check instead of 40 to my suppliers. Plus, I get frequent-flier miles. Still, some distributors remain wary, contending that they have to weigh the benefits of getting their cash faster with the costs of paying fees for each credit-card transaction. And others grumble even as they accept the cards.
Most businesses continue to pay for inventories by check, after being billed via a standard invoice.
But card issuers are thrusting plastic into more entrepreneurs' hands. Visa says it has more than three million small-business card holders now, doubling the number it had a year earlier. And Visa introduced platinum credit and check cards for small businesses, which include concierge service, a technology help desk and a legal help line. Also this spring, American Express began advertising in trade publications targeting the food and home-improvement industries, telling wholesalers and distributors how easy it is to accept American Express cards. So, companies such as Champion Lumber Co., a 75-employee seller of lumber primarily to contractors, are hopping on board.