Credit card processors have a window to the world when it comes to watching merchants return to pre-pandemic revenue levels. Because we process credit cards for many different industries, including jewelers, booksellers, ground transportation providers, food & beverage establishments and many more, we see all the transactions, the average ticket amount, the number of transactions in a day and how much money we are moving each day into merchant bank accounts.
Our window during the height of the COVID-19 pandemic included views of the decimation caused to certain industries such as ground transportation industry. Meanwhile, the funeral industry saw a spike in revenue as funeral homes, coroners offices and hospitals were renting refrigerated trucks to store bodies. While the majority of the industries Chosen Payments serves suffered financially, we have good news! Make that, GREAT NEWS! We are seeing a return of business for everyone. This could be a result of the multiple stimulus checks, the availability of vaccines or the fact that stay-at-home orders are being relaxed in most regions of the country and people are eager to get out. Getting out means spending money.
On a side note, the shift to mobile banking is now firmly entrenched in our society. The pandemic forced everyone to rely on mobile banking since bank branch offices were mostly closed. Many branches will never reopen. Banks also successfully dodged the expected loan losses as most people kept up their payments on loans according to a report by JP Morgan. This is a good thing for the economy as banks had braced for an increase in loan defaults and set aside money to offset those expected losses. Since they didn’t happen as planned, loans will likely be easier to get and come with better interest rates. 56.7 million Americans are now use mobile banking as opposed to visiting a brick and mortar bank.
The first quarter of 2021 showed many businesses returning to pre-pandemic revenues and transacting nearly as many credit card transactions as they did in the first quarter of 2020. Remember, the pandemic largely swept the nation into quarantine on March 17, 2020, robbing merchants of 14 days of sales opportunity in the first quarter.
To be specific, credit card sales volume (excluding commercial cards) in the first quarter of 2021 was $183.7 billion. This is up 3% from the March quarter 2020 total. The combined total of credit card and debit card transactions are up 9% at $290 billion. It appears we have hit the bottom of the barrel and there is only one direction to go from here. That direction is up! If you are not a current customer of Chosen Payments, today might be a good day to contact us about free credit card processing. You can reduce your operating expenses significantly. Call us today at 855-4CHOSEN to learn more.