The cost of dealing in cash
For decades, analysts have been predicting the advent of the cashless society, but like flying cars and time-travel, that future never seemed to get here – until now. Between credit and debit cards, online payment systems, peer-to-peer networking, smartphone apps and more, it’s never been easier to quit carrying those greasy greenbacks. And beyond convenience, there are multiple benefits to going cashless. Consumers now expect retailers and small businesses to have card payment options and not having digital payment solutions can cost you that valuable sale or lose potential customers.
Let us now look at some of the reasons why card payments are better than dealing in only cash:
1) LOSS TO BUSINESS: As businesses are hopping on the card payment bandwagon, it reinforces the expectation by customers that all businesses now accept cards. Whether you do or not, your choice makes an impression on those who want to pay the way they prefer.
Today’s consumers are less tolerant to lack of payment options, so a “sorry, no cards” from a shop is likely to end that customer relationship faster than you can open the cash drawer. Especially millennials, who are more likely to use mobile payments, are less inclined to carry cash around.
2) THEFT AND SECURITY: Cash is easily stolen. Protecting your cash requires increased security, monitoring and time. Employees facing hard times might dip into the petty cash fund, which owners have on hand to replenish cash registers. Not only is it difficult to track its movement, once cash is gone, there is no way to recoup it. Running a cash business can also make you a target for robberies. For owners, managers, staff and customers, this is no small thing. Going cashless deters thieves and makes your store a more secure place.
There is also a risk of counterfeit currency notes. Just accepting one fake euro bill is enough for many small shops to put a dent in the earnings of that day. Card transactions do not have this problem
3) BOOKKEEPING: Bookkeeping can be a major hassle when dealing with large amounts of cash. Cash transactions aren’t always recorded correctly and often need to be double checked, adding to the workload. When you go cashless, transactions are automatically recorded and stored electronically and can be synced with bookkeeping software to make it an easier, faster process.
4) CASH HANDLING AT THE TILL: Small shops and market stalls often suffer from lack of change at the beginning of a day before they receive enough to fill the till drawer. This means either making a compromise with the customer or having to pop outside to a neighbouring business to ask if they can spare some change for a note. With card transactions, you can actually save man hours of doing cash handling and cut down on operational costs of running your business.
5) LOSING OUT ON VALUABLE CUSTOMER DATA: More and more retailers are realizing the power of customer data, and cash is a major limitation in that regard. Tying customers to their individual transactions helps organizations better understand behaviours and preferences. When people opt in with their contact info, restaurants and venues can also target those customers with personalized offers after they get their food, as well as broader audiences who haven’t visited yet. Cash, however, makes it impossible to tie a transaction to an individual without some additional input like a loyalty barcode or a phone number. New Payment Innovations flagship Revolution platform is a reporting platform built specifically to service the merchant services industry and the requirements of our partners and customers.