Paul K. Graser, CFE
Senior Investigative Specialist
Edward Jones

Merchants (sellers) have a decision to make when they set up their business regarding accepted forms of payment. All methods come with risks, but the goal is to mitigate that risk so it is easy to conduct business with customers (buyers).

Credit cards are convenient, but the merchant pays a fee to accept them (typically between 1.5 and 4.0 percent per transaction). Checks can also be convenient for the buyer, but the merchant runs the risk of the bank returning the check due to forgery or insufficient funds.  

The merchant assumes the risk and can pay a heavy price for offering the convenient payment options. Many small businesses play the role of both customer (buyer) and merchant (seller).  
Some of your fellow EASA members shared cautionary tales regarding experiences with various payment methods and their respective risks.

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