Forgive us for being so blunt. But in 2018, there’s simply no good reason to operate a cash-only business. Canadians nationwide have proven that they much prefer to pay for their purchases with either their credit cards or their debit cards. At the very least, they appreciate having the option to decide whether or not they want to use cash.
Not only does it help them to avoid loss or theft, but going cashless enables shoppers to shop to their heart’s content. Cash is limiting. Quite obviously, an individual can only spend up to the amount of cash on his/her person if cash is the only payment option. With the ability to use credit or debit, however, a customer can be more flexible with his/her spending.
“There is actually hard evidence behind the oft-heard, but usually anecdotal claim that credit cards make consumers more likely to spend money,” reports Credibly.com, “An MIT study on credit cards’ effect on consumers’ willingness to pay showed that customers may be willing to pay up to 100% more when they’re using a credit card. If your business is cash only, you’re losing money, guaranteed—and you’ll never know how much.”
It’s no secret that cash has been counterfeited for as long as cash has existed. If you only accept cash, you run the risk of being ripped off. Counterfeit bills obviously have no cash value. If you’ve mistakenly accepted such bills, you’re stuck without your “sold” inventory and are forced to take a loss. By accepting plastic, you guarantee that your business will have earned a profit from the sale.
“Business owners who rely solely upon cash can also open themselves up to fraud more easily since there is no checks and balances system for approving or denying cash funds, aside from the ability of the cashier to recognize counterfeit money,” writes Jared Lewis on Chron.com, “Without an electronic currency system, the business owner may open himself up to fraud much more easily, especially if he is not in charge of collecting all of the money coming into the company.”
As mentioned, most Canadian consumers simply prefer having payment options. And one of the top reasons for this is because it’s much more convenient to place all purchases on one account. Whether it’s their credit cards or debit cards, shoppers have proven that they enjoy the accounting ease that comes with being able to see all of their purchases on one bill. Paying with cash doesn’t exactly help for good bookkeeping.
“According to a TSYS Consumer Payment Study, only 11% of respondents said they preferred to use cash, while 40% preferred credit cards, and 35% preferred debit cards,” reports Credibly.com, “By failing to provide your customers with the ability to pay using their credit or debit card, many of them will feel inconvenienced, especially if your average transaction price is relatively high.”
Here’s the bottom line: Your cash-only business is hurting your bottom line! At Canadian POS, we highly recommend the Poynt Smart Terminal for all of your payment processing needs. For more information, please don’t hesitate to call us at 1-877-748-2884 or email us at firstname.lastname@example.org.