Is Accepting Credit Cards Cheaper Than Waiting to Get Paid?
Waiting 30, 60 or 90 days for customers to pay can create hidden borrowing and cash-flow costs. Learning when accepting credit cards may make more financial sense.
Presented by Allen Kopelman, CEO — Nationwide Payment Systems-Host of B2B Vault: The Biz2Biz Podcast
AI Overview
Accepting credit cards may be cheaper than waiting 30, 60 or 90 days to get paid when borrowing costs, employee time, collections risk and lost cash-flow opportunities are considered. A 3%–4% processing fee can look expensive by itself, but if a business is using a line of credit or other financing while invoices remain unpaid, the real cost of waiting may be similar or even higher. For B2B companies, the better question is not only what the card fee costs, but what delayed accounts receivable costs the business in working capital, flexibility and growth.
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The Federal Reserve Raised Rates. What Does That Mean for Businesses Waiting to Get Paid?
On September 16, 2026, the Federal Reserve raised its target range for the federal funds rate by 0.25 percentage point to 3.75%–4.00%.
For businesses that depend on lines of credit, working-capital loans or other forms of financing, higher interest rates matter.
But there is another side of the interest-rate conversation that doesn't receive nearly enough attention:
How much is it costing your business to wait to get paid?
Manufacturers, distributors, wholesalers, suppliers, contractors and other B2B companies routinely give customers 30-, 60- or even 90-day payment terms.
Meanwhile, the business providing those terms still has bills to pay.
Payroll doesn't wait 60 days.
Vendors don't necessarily wait 90 days.
Rent, insurance, fuel, inventory, taxes, and operating expenses keep coming.
So, businesses often turn to a bank line of credit or another source of working capital while waiting for their own money to arrive.
That creates an interesting question:
Is the Credit Card Fee Really the Expensive Part?
We hear this frequently from business owners:
“I don't want to accept a credit card because it costs 3% or 4%.”
That's understandable.
Nobody wants unnecessary expenses.
But looking only at the processing fee ignores the other side of the transaction.
What happens if declining the card means waiting another 30, 60 or 90 days for the money?
And what happens if you have to borrow money while you wait?
One business owner recently told us his borrowing cost was approximately 14% annually.
At that point, the conversation changes.
The question is no longer:
“How much does accepting this credit card cost?”
The better question is:
“What is the total cost of waiting for this invoice to be paid?”
The $100,000 Example
Suppose your company has $100,000 outstanding from a customer.
The customer can pay immediately by credit card, but otherwise the invoice may remain outstanding for another 90 days.
Assume your cost of borrowing is 14% annually.
The approximate interest cost of borrowing $100,000 for 90 days would be:
$100,000 × 14% × 90 ÷ 365 = approximately $3,452
Now compare that with accepting a card at an illustrative total processing cost of 3.5%.
$100,000 × 3.5% = $3,500
Those numbers are remarkably close.
But there is one enormous difference.
With the card payment, you have the $100,000 now.
You can use that money to:
Pay vendors
Buy inventory
Make payroll
Fund your next job
Take advantage of supplier discounts
Reduce your credit-line balance
Invest in growth
Avoid spending time chasing the invoice
And you eliminate much of the uncertainty surrounding when the customer will actually pay.
Be Careful Comparing an Annual Interest Rate to a Processing Fee
There is an important distinction here.
A 14% borrowing rate is normally quoted annually, while a 3%–4% processing cost is generally charged on the transaction once.
So saying that “14% borrowing is always more expensive than a 3.5% card fee” would not be mathematically accurate.
The length of time the receivable remains outstanding matters.
For example, using a 14% annual borrowing rate on $100,000:
Time Outstanding
Approx. Interest Cost
30 Days
$1,151
60 Days
$2,301
90 Days
$3,452
120 Days
$4,603
At approximately 90 days, the borrowing cost alone begins approaching a hypothetical 3.5% card acceptance cost.
At 120 days, the borrowing cost would already exceed it.
And those calculations only include interest.
They do not include the other costs associated with accounts receivable.
Accounts Receivable Isn't Free Financing
Business owners sometimes think:
“I'm not borrowing money. I'm just waiting for my customer to pay me.”
But economically, somebody is financing the transaction.
If you deliver $100,000 worth of products today and allow the customer to pay 90 days later, you effectively provided that customer with 90 days of financing.
Meanwhile, your company has lost access to that $100,000.
That's why I often tell B2B companies:
Don't become your customer's bank.
Extending credit may be necessary for some customers and industries.
But every company should understand what those terms are costing them.
The Hidden Costs of Waiting 30, 60 or 90 Days
Interest expense is only one piece of the equation.
There are several other costs businesses should consider.
Employee Time
Someone has to generate invoices, send statements, answer billing questions, follow up on past-due balances and reconcile payments.
If employees spend hours every week chasing money, that labor has a cost.
Collection Risk
An invoice that is paid immediately has essentially zero accounts-receivable aging.
An invoice that sits for 30, 60, 90 or 120 days creates additional uncertainty.
Customers can experience financial problems.
Management can change.
Purchase orders can get disputed.
Invoices can get lost internally.
The longer money remains outstanding, the greater the opportunity for something to go wrong.
Lost Purchasing Power
Cash sitting in accounts receivable cannot be used to purchase inventory or take advantage of vendor opportunities.
Credit-Line Utilization
If your receivables force you to draw on your business credit line, you're using borrowing capacity that could otherwise be available for emergencies, expansion, or strategic opportunities.
Opportunity Cost
Sometimes the biggest cost isn't the interest rate.
It is the opportunity you couldn't pursue because your capital was tied up somewhere else.
Interest Rates Make Accounts Receivable More Important
Before the Federal Reserve's September 16 decision, the Federal Reserve's H.15 data showed the bank prime loan rate at 6.75%.
Individual businesses, of course, may pay considerably more or less depending on credit quality, lender, collateral, loan type, and other factors.
That's why we hear numbers such as 8%, 10%, 12%, 14% and sometimes considerably higher when talking with business owners.
The Federal Reserve's latest increase reinforces a basic business principle:
The cost of capital matters.
And when capital becomes more expensive, getting your own money faster becomes increasingly important.
Credit Cards Should Be Viewed as a Cash-Flow Tool
For many B2B companies, credit cards are treated strictly as another payment method.
We think that misses the bigger picture.
Payments are part of your overall cash-flow strategy.
Imagine giving a customer three choices:
ACH: Pay electronically directly from their bank account.
Credit Card: Pay immediately and potentially earn rewards or extend their own payment cycle.
Traditional Terms: Net 30, Net 60, or Net 90 when appropriate.
Giving customers multiple payment methods can accelerate collections without eliminating traditional credit terms entirely.
You don't necessarily need every customer to pay by credit card.
The objective is to give customers convenient ways to pay while reducing the amount of money sitting unnecessarily in accounts receivable.
For Large B2B Transactions, Processing Costs May Also Be Optimized
Businesses processing large commercial card transactions shouldn't automatically assume they must pay the same pricing structure associated with many flat-rate payment platforms.
Commercial transactions may qualify for Level 2 or Level 3 payment data, depending on the card, transaction, and other requirements.
When applicable, enhanced transaction data can help businesses qualify for more favorable interchange categories.
Nationwide Payment Systems works with B2B merchants to evaluate areas such as:
Level 2 and Level 3 processing
Large-ticket transactions
Commercial cards
Purchasing cards
Virtual cards
ACH payments
Cost-plus pricing
Accounts receivable automation
Smart invoicing
Recurring billing
Payment links
ERP and accounting integrations
The goal isn't simply to accept another payment method.
The goal is to design a payment process that improves how quickly and efficiently money reaches your business.
ACH and Credit Cards Can Work Together
This should not be viewed as an argument that every B2B payment should be made by credit card.
Sometimes ACH is the better choice.
For example, a customer making a large recurring payment may prefer ACH.
Another customer may want to pay a $25,000 invoice immediately using a corporate card.
Another may still need payment terms.
That's why a modern accounts-receivable strategy should support multiple payment options.
With NPSONE Smart Invoicing, businesses can provide customers with electronic payment options rather than relying solely on paper invoices and checks.
Depending on the setup, businesses can support features such as:
Credit and debit cards
ACH payments
Payment links
Email and SMS invoices
Recurring payments
Deposits
Partial payments
Scheduled payments
Automatic reminders
QR codes
QuickBooks Online integration
Xero integration
Sage Intacct integration
API and webhook connectivity
Instead of asking:
“How do we process more credit cards?”
A better question is:
“How do we make it easier for our customers to pay us?”
Stop Waiting for the Check in the Mail
This remains surprisingly common in B2B.
A company sends an invoice.
The customer processes the invoice internally.
Someone approves it.
A check gets printed.
The check gets mailed.
Several days later it arrived.
Someone deposits it.
Then the funds finally become available.
Meanwhile, the supplier has effectively financed the transaction from the day the product or service was delivered.
There is nothing inherently wrong with accepting checks.
The problem is relying on checks as the only payment method when faster electronic alternatives are available.
Calculate the Real Cost of Waiting
Every business is different.
A company borrowing at 7% has a different calculation from a company borrowing at 14%.
A business getting paid in 25 days has a different calculation from one routinely waiting 95 days.
And processing a $2,000 consumer transaction is different from processing a $100,000 commercial invoice.
That's why Nationwide Payment Systems created a Cash Flow Calculator.
Instead of guessing, businesses can look at factors such as:
Average invoice amount
Number of days customers take to pay
Current borrowing costs
Outstanding accounts receivable
Potential electronic payment costs
Then you can make a more informed decision about whether offering faster payment options makes financial sense.
The Bigger Question: What Is Your Money Worth Today?
When interest rates rise, business owners scrutinize borrowing costs.
They should apply that same thinking to accounts receivable.
If you're waiting 60 or 90 days for money you've already earned while simultaneously borrowing money to operate your company, there may be an opportunity to rethink the process.
Sometimes paying a transaction fee to receive money immediately can be more valuable than waiting months to receive 100% of the invoice.
Especially when you factor in borrowing costs, employee time, collections, risk, and lost opportunities.
A credit card isn't always just a payment method.
Sometimes it is a tool for accelerating cash flow.
And sometimes the most expensive payment is the one you are still waiting to receive.
Want to Know What Waiting Is Costing Your Business?
Use our Cash Flow Calculator to compare the cost of waiting for customers to pay against faster electronic payment options.
Nationwide Payment Systems has been helping businesses navigate payment processing and cash-flow strategies for more than two decades.
We work with manufacturers, distributors, wholesalers, suppliers, contractors, B2B companies and other businesses that want to modernize the way they get paid.
Calculate the cost of waiting — then decide what makes the most sense for your business.
