Why some businesses don’t accept credit cards
Eighty-one percent of adults in the U.S. had a credit card in 2024, according to a 2025 Federal Reserve Board publication. But why do some businesses not accept this common form of payment? Below, we cover why some businesses choose not to accept credit cards, plus reasons why businesses may want to consider revisiting the forms of payment they accept.
Why credit cards are not accepted by all businesses
Many merchants in the U.S. do accept credit cards. Due to the fact that some of them do not want to incur the associated fees required to process the transactions. These are often called “swipe fees." These fees differ among credit card issuers and networks, but generally average between 2% and 3% of each transaction.
What if a business only accepts certain credit cards?
If a business only accepts certain credit cards, it's called selective credit card acceptance. Selective credit card acceptance lets business owners choose to accept specific credit card networks. It may be helpful to have more than one kind of credit card or payment method in your wallet in case you find yourself in a store or on a website that only accepts a certain kind.
Merchants might not accept certain credit cards due to partnerships with specific networks. For instance, a large retail store might agree to accept only one type of credit card, such as Visa.
Which credit card is accepted the least?
Technically, store cards are the least widely accepted credit cards because they can only be used at their specific family of brands.
Why is my credit card not being accepted online?
If your credit card is not being accepted online it could be because you're using a credit card that the merchant does not accept or a payment method that's not compatible. Your card may be declined if you try to make a purchase with an external payment processor that your merchant does not allow.
As always, it's essential to read the terms and conditions on the merchant's website to see which cards are accepted and which ones are not.
Why businesses should accept credit cards
There are several reasons why it can be a good idea for businesses to accept credit cards as payment.
Consumer preference
2023 data from the Federal Reserve shows that consumers’ preference for using cash has consistently declined since 2016, while their preference for using credit cards has consistently increased. Businesses that accept credit cards may find that offering this convenience to customers translates to more sales.
Cash flow
When a customer pays with a credit card, the business is usually able to receive the money within days or even hours. This is a helpful way to maintain cash flow since checks or invoices may take a long time to process and clear.
E-commerce
Likely, a portion of the business's potential customer base is online. When they allow credit cards as payment online, they may not only see higher sales, but they may also be seen as more legitimate and trustworthy to their customers. Above all, this option offers a convenient and secure way for online shoppers to do business with them.
In summary
The majority of U.S. merchants offer credit cards as a payment option because it's the method that their customers prefer to use. Still, some merchants do not want to pay the swipe fees associated with processing the credit card transactions. It's generally a good idea to keep more than one form of payment in your wallet in case you engage with a business that does not accept credit cards or the type of credit card that you have.
