Cash Only: Why You Shouldn’t Just Accept Cash
No business should only accept cash in this day and age. Whether you’re a market stall vendor or driving instructor, there should always be the option to accept card or other payment types. Why is cash-only a bad business model? Below are just some of the reasons.
Cash payments can be slow
Cash payments require both customers and servers to count their change. Card payments on the other hand are instant. If you regularly get queues of customers, only accepting cash could slow you down. On top of this, you have to manually cash it into a bank. With card payments, the money enters your account instantly.
Fewer people carry cash
Due to various reasons ranging from hygiene to convenience, fewer customers are choosing to carry cash. Some customers are likely to be put off by a ‘cash only’ sign – particularly if there’s not an ATM nearby. In other words, by only accepting cash, you could be putting off customers.
Card readers are now portable
Card readers nowadays are portable. If you own a restaurant and use a POS system, having a mobile card reader could allow you to take payments at customers’ tables. This could include using EMV-certified software running on MagTek hardware. It’s even possible to set up a smartphone or tablet to accept payments. In other words, card payments can be taken from any location – so there’s no excuse to be sticking to cash.
You need to carry small change
Cash payments require you to stay stocked up on small change. If you work on the go, you may not be able to carry a cash register around with you, which could mean carrying a bag of change. A card reader is just as easy to carry around, and you don’t have to worry about misplacing change.
Change can be easily miscounted
It’s easy to make errors with cash – which could include giving someone too much change by accident. When you only accept change, you increase the risk of these types of errors occurring. With card payments, you don’t have to worry about these types of errors because no change is required.
Cash can be a target for thieves
Cash-only businesses are often a popular target for thieves because there’s much greater loot on offer. By accepting card payments, you can minimize the amount of cash on your premises and make your business less attractive to burglars. In fact, evidence shows that cashless businesses are typically less prone to burglary.
A cash only business could be viewed as less trustworthy
‘Cash only’ has become synonymous with ‘money laundering’ for many people. While you may well be an honest business, there’s a risk that some customers may distrust you. Card payments are digitally tracked and it’s therefore much harder to get away with not paying tax on them. By accepting card payments, you may be seen as less dodgy and you may win over the trust of more customers. You may also be less likely to receive a tax inspection.