; Accepting Debit/Credit Cards: Is It Right For You | Conferences | AgRisk Library


Conference Name Accepting Debit/Credit Cards: Is It Right For You

Kenesha Reynolds-Allie


Recently, there has been substantial growth in direct-to-consumer marketing. Consumers are participating in more on-farm, farm stand and farmers market purchases, as their demand for fresher, healthier, locally grown food increases. One of the limitations consumers encounter when purchasing directly from farms, especially smaller farms, is the “cash-only” payment policy. Research has shown that consumers are looking for the convenience of paying with debit or credit cards, and their purchase amount is positively correlated with these payment options. However, while accepting card payments would be beneficial, and convenient to consumers, farmers are hesitant to accept these forms of payments, as they believe it would burdensome, costly, and are unsure of the impact on their profit. This paper seeks to educate farmers on consumer preferences for card versus cash payments, and the requirements and costs associated with providing this service, to meet the needs of their customers. Farmers can use the information provided to make a marketing decision that could have a positive impact on their sales and profit. The ultimate goal is to ensure farmers are taking advantage of any farm marketing opportunities that arises. Given that this is a universal issue and concern for farmers across the U.S., extension specialist can use this information provided to help farmers decide whether it is viable for them to accept card payments.