Accepting cash as a means of payment can be a costly decision. Most businesses are starting to realise that and opting for cash payment. Businesses that are just starting to accept card payment are advised to make use of merchant services. The choice for merchant services depends on the needs of a business and their pricing options. They work with businesses to make use of innovative yet practical options to avoid losses. Businesses are advised to observe the merchant services companies they choose to see if they deliver what they promised. If they do not, they should be replaced.
Cards are more convenient for buyers than cash. They make it possible to pay for goods later and unlike cash, they have rewards. Credit cards offer rewards for purchases made and they can be used to build good credit. They are faster than cash payment.
Disadvantages Of Accepting Cash
Businesses that accept cash waste a lot of time counting cash for their customers and counting profits at the end of the day. When counting change for a customer, they delay their services to other customers. Businesses may not always have enough change so they would have to spend even more time trying to find it. Slow service may be a reason to lose customers. They waste a lot of time that should have been spent doing something more beneficial to the business. It can also be very tiring to the employees.
Businesses that accept cash payment lose money on transportation costs. They may have to hire armed security vehicles and personnel for the transportation and to pay employees that transport the money for working overtime. They may have to spend money training their employees on how to transport cash safely.
There is always the possibility of losing cash during transportation. Businesses that cannot afford to hire security vehicles and personnel to transport cash are very vulnerable especially when transporting money after hours. Robbers take note of the patterns of businesses and steal from them. It can easily get damaged by water, fires and other risks. Employees are not always trustworthy either. They may steal from the business. Unfortunately, lost cash is gone.
Customers spend more using cards than using cash. There is a sense of loss when customers part with their money so they may not spend much. Cards not only encourage but also facilitate buying since customers can spend money even when they do not have it.