Even if you’re too young to remember, we can assure you — debit and credit cards haven’t always been the preferred way to pay for things. Cash used to be king at the register — even though it’s been largely displaced from its throne in favor of credit and debit cards and mobile wallets.
The Rise of No-Cash Businesses
A few years ago, Visa hosted the Cashless Challenge, in which 50 owners of small businesses won $10,000 apiece for refusing to accept any more cash payments at their respective establishments. Many owners who choose to stop taking cash at their businesses do so to save time at the point-of-sale. If you run a fast-food restaurant, for example, you may be able to serve more people during your rush hours if you refuse to accept cash payments. Serving more people every day can add to your bottom line in both the short- and long-term.
If you agree to only accept cashless payments, you stand to enjoy some key benefits, including:
- Lower labor costs: Before each shift, employees generally have to count the money in their cash drawers. Counting cash takes time even when employees are used to counting bills and change quickly.
- Reduced risk of theft: Cash-only businesses are susceptible to employee theft. Unfortunately, they may be the target for being robbed by a third-party as well.
- Expedited checkouts: If your business accepts cash payments, your customers will have to count their money, and your employees will have to recount the cash and correct change — which will invariably be recounted by the customer. This process can stall a checkout line pretty quickly, which may cause some people to abandon their purchases.
- Eliminates the risk of counterfeit bills: If your business stops taking cash, you won’t have to worry about payments made with counterfeit bills. With counterfeit money typically in bigger denominations of $20 or more, eliminating this threat can save you significant sums of money.
Going cashless may provide one other benefit. Depending on your organization’s insurance carrier, refusing to trade in cash at your establishment may lower your insurance premium.
The Downsides of Going Cashless
With cashless operation offering so many potential benefits, it may be difficult to imagine why any business would refuse to go cashless. The reality is, there are some downsides to only accepting cashless payments. The most considerable one is that going no-cash may cause some people to shop elsewhere. You need to remember that not everyone has a card or mobile wallet, and some people prefer to operate on a cash basis to stay within their budget.
Another significant pitfall involves merchant fees. Service providers charge fees to process payments made with mobile wallets, credit cards and debit cards. While those fees are usually negligible, you still must take them into consideration — because cash transactions don’t involve ancillary fees unless your bank charges you a fee to accept cash deposits.
Velocity Merchant Services Offers the Best of Both Worlds
You don’t have to choose between going cashless or not when you get a POS system from Velocity Merchant Services. The Clover POS systems we sell support all transaction types, including cash, dip and contactless payments.
When you buy a Clover POS system from VMS, you’ll enjoy the following benefits:
- Free website
- Lifetime warranty
- Complimentary next-day shipping
- Dedicated Clover specialist
- Set up assistance
- Round-the-clock support
What’s the biggest benefit of buying a Clover POS system from us? The versatility to accept all the payment types you want, of course. Contact us to learn more now!