Fewer than one-fourth of the consumers surveyed by BIGresearch for the National Retail Federation plan to make most of their holiday purchases with cash, down four percentage points from last year, and only 6.2 percent prefer to use checks. On the other hand, 30.5 percent of those surveyed plan to use their credit card most often and 39.1 percent plan to use a debit or check card.

This growing trend toward using plastic does not seem to intimidate a few small business owners who choose not to accept credit cards. They claim that they have been able to save money and avoid the hassle of working with credit card companies without losing many customers.

But based on statistics, Jim Henter, president of the Iowa Retail Federation, finds this hard to believe. “A lot of rules for credit cards are designed on behalf of the consumer and can be disadvantageous for retailers,” he said. “However, it seems to be one of those must-dos to be competitive out there.”

At least four small companies in Greater Des Moines have stayed afloat with a no-credit-card policy.

Marsha Steele, owner of Found Things, an eclectic consignment shop in the East Village, tried a credit card processing service for the first month she was in business but changed her mind after she saw the percentage taken from her sales.

By the time she added up the processing fees, maintenance fees and an application fee she was unaware of, she figured about 8 to 9 percent of her total sales went to the credit card companies. Because she was trying to save enough money to buy a sign for the front of her store, the fee was especially hard to accept. She also did not like displaying the required promotional items for the credit card companies.

“I want tangible results for my overhead,” Steele said. “I don’t want the bank charges quietly taken out of my account and nothing to show for it.”

Now she accepts cash or checks and can direct her customers to an automated teller machine, which she said has alleviated any problems customers might have with her policy.

J.D. Daniels of Frederick’s Tailoring and Quality Cleaners was just as frustrated with his monthly credit card charges, but accepted them for more than 20 years. He figures that with a 3 to 4 percent processing fee and a monthly maintenance fee, he spent about $250 to $300 a month to offer the service.

“When I first started [in 1980],” he said, “I thought it was prestigious to have a MasterCard and Visa sign on my window.” But after a negative experience with a bank five years ago, he decided to quit accepting credit cards altogether.

“If I were a large business that handles inventory,” Daniels said, “I could appreciate the fact that I need to take credit cards, because of the volume I would do and the [total of each] sale. … But as a small service business, it is imperative that I count every penny.

“The time it takes me to accept the card and the cost to me as a small business, I think the institution should pay me to accept the cards. I’m honoring their cards.”

He said a couple of people may walk away from his store each day, because he doesn’t take plastic. He has signs in his store that let customers know they will need to pay with cash or check when they return for their clothes a week later.

Folk Art and the General Store Eatery are two businesses in Valley Junction that have never even tried a credit card processing service, even though they regularly receive calls asking if they would like to sign up. For these owners, it’s simply the way they’ve always done business.

“We’ve always tried to keep things really simple here,” said Jackie Leckband, who runs Folk Art with her mother and sister. “We’d rather be doing our artwork than bookkeeping. We like to focus on people rather than the technology.”

If a customer does not have cash or a check, Leckband said they offer to give the customer an invoice and he or she can mail the money to them. “It rests on the other person’s conscience,” she said.

Leckband once gave an invoice to a customer from out of town who did not have enough money on hand to pay for the purchase. That person returned a year later to pay, admitting that she had lost the invoice but her conscience had brought her back to the store.

For Teresa Brittain, owner of the General Store Eatery since 2000, paying a percentage of her sales is not worth it, given the average cost of a meal. She said the previous owner, who started the store in 1970, never accepted credit cards, and she has not heard of any complaints from the customers. Brittain said most people usually carry around enough cash for lunch, and she has a sign out front that says checks or cash only.

“I think it saves you money over the years,” she said. “It costs you to use those, and nobody needs an added cost. Sure it’s not a lot, but for a small business like I am, I don’t need any added costs.”

As a consumer, Mike Draper, owner of Smash in the East Village, cannot imagine not being able to pay with a credit card. He said he rarely carries cash anymore. But as a store owner, he understands the predicament.

“It’s not really a problem. It’s just annoying,” he said. “I think running a business you realize how much money floats out of your bank account without you noticing.”

He, along with Jim Miller, director of the Historic Valley Junction Foundation, recommends working through banks, which tend to have steadier rates than other companies. Miller said other credit card processing companies will offer a better rate for two months, then bump the fees up.

The Iowa Retail Federation also has a program that lumps small and medium-sized retailers into a pool, helping them get a more competitive rate. He said the average credit card fee incurred is about 2 percent of credit card sales.

Steele of Found Things understands why stores that have steady daily business with an average transaction size of around $20 to $40 need to accept credit cards in order to survive.

“I have talked with other retailers in East Village,” she said, “and they could not live without credit cards, but that’s just not for me.”