There’s a saying that permeates the world of business, whatever the size and nature of your enterprise and whatever sector you may choose to ply your trade within. It’s the age old idiom that “cash is king”. For generations, entrepreneurs from shopkeepers to nail technicians to artists have favored the simplicity and efficiency of the cash transaction… But is eschewing the use of PDQ (Process Data Quickly) machines really the right way forward for your business? Of course, only you will know this definitively, but here we’ll look at 3 arguments as to why investing in the equipment to facilitate credit and debit card transactions could work in your business’ favor and 2 reasons why you may be better off without it.
For: It Encourages Impulse Spending
If you operate a retail outlet, you don’t need us to tell you the value of upselling and impulse spending. The trouble with cash is that it can inhibit these practices. If a customer approaches the register with cash, they likely have a set amount they want to spend or have a set amount on them. It’s possible that they may go out to get more cash and return… But unlikely.
For: It Makes Transactions more likely
Not only will accepting card payments increase your chances of upselling or package selling, merely seeing a sign on the door stating that you accept credit and debit card payments can be the difference between customers walking through the door or moving along. Or imagine your frustration if they come to the register, their arms loaded with items only to walk right out the door when they find that they can’t use their preferred payment method. For better or for worse, it is pretty much expected that businesses accept non-cash forms of payments, and customers’ dispositions toward your premises could be soured if you do not.
For: It may be more secure
You may be averse to the potential risks that credit cards present to your business. After all, neither retailer nor customer wants to find themselves on the end of a fraudulent card transaction. The truth, however, is that since the advent of Chip & Pin security measures over a decade ago, card transactions are more secure than ever. Moreover, card transactions mean that you have less cash in store which means not only that you’ll have to spend less time on your banking at the end of the day, but your premises is partially insulated against theft.
Against: Cash = Liquidity
With comprehensive ATM coverage, cashback and snappy payday loans cash is easier than ever to come by for your customers and could make a big difference to your business. Having lots of cash in the register is good for your liquidity and could enable you to take advantage of a bargain lot of stock, a new piece of equipment or digital marketing which could grow your business.
Against: Cash Cuts Transaction Costs
Aside from the overheads required for the equipment to take card transactions, there are also charges incurred by businesses every time they receive a payment. These are fairly insubstantial alone but can eat into your margin every now and then, especially if you have no minimum payment threshold for card transactions.
Again, only you know what’s best for your business. Make an informed choice that’s the right choice for you!