You may think a cash-only business is the best business for you—and you could be right… but you might be wrong.
The fact of the matter is that the convenience of plastic is quickly permeating the way we pay. People are increasingly using credit cards to pay for everything from expensive electronics to coffees costing less than a dollar. And businesses that refuse to accept credit cards risk losing boatloads of their plastic-paying customers.
Cash is king
Cash transactions are safe. They’re safe and neat and known, making the idea of a cash-only business so appealing to business owners. After all, cash is king.
But… King Cash was long ago dethroned by, you guessed it, plastics. In 2015, the percentage of cash transactions dropped by 22.5%. Credit cards, meanwhile, were used for almost 30% more transactions. And that trend is set to continue: analysts estimate cash transactions will continue to decline while credit and other forms of paperless payments will continue rise. Businesses should prepare for this trend by accepting the payment method more of their customers want.
Cash is fraud-free
There’s no shortage of clandestine ways to defraud a small business through credit cards. Whether that’s by using stolen cards or by falsely claiming an erroneous transaction, it’s a scary credit world for small business owners. And, sure, there are cash-focused fraudsters, but they’re much easier to catch in the moment.
But… The truth is that fraud is a sad reality, whether you accept credit cards or not. And there are many systems small business owners can put in place to make the fear of fraud but a blip in their day-to-days. In fact, Moneris has compiled a helpful resource centre dedicated to helping small business owners combat credit card fraud.
Cash is quick
Between quick transactions and a lower risk of fraud, there’s almost no reason not to accept only cash payments. For small business owners who provide a service, the convenience of cash means you’ve got the means to keep the lights on while you work with your next client.
But… For many small business owners, chasing down a delinquent payment is simply a part of the job. Some businesses can go many months without seeing a penny for their efforts—and yet more can find themselves completely out of pocket when a client goes bust. Service providers can reduce that risk by implementing automatic credit card payments. Automatically charging your clients’ accounts means no need to chase a payment, no need to worry about when or how you’ll get paid, and no need for those pesky bank visits to deposit cheques!
Cash isn’t complicated
Cash is about as easy as it gets. The buyer gives the retailer money, the retailer gives the buyer a product. Conversely, credit card payments are more complex: there are fees to worry about, and extra steps to take in a POS.
But… While there are a few more buttons to press, credit transactions are a lot easier than you might think. Moneris not only has an easy-to-understand, step-by-step guide for each of its products, but it also has representatives available at the ready to help business owners set up and perfect their payment processing solution—credit or cash.
But probably credit.