Many merchants will encourage cash payments over credit cards since it appears to be the cheaper and simplest option. However, business owners are not accounting for the hidden costs of accepting cash, which easily outweighs the benefits of cash. Every company is structured differently, but these five costs apply to any business and only magnify as companies grow.
- The Cost of Manual Counting
Cash requires store managers to collect and count cash at the end of each day, which takes up the precious time of upper-level management. With digital payments, funds are automatically calculated and deposited into the bank. There are no trips to the bank, no manual counting and very little room for mistakes. - The Cost of Theft Protection
US retail businesses lose about $40 billion each year because of cash theft alone! Although cash may not carry processing fees, it can easily be stolen. Credit card data is much harder to take, and the right payment processor will provide security solutions that keep customer data airtight and nearly impossible to hack. - The Cost of Abandoned Carts
Cash takes a while to count, accept and provide change, and transaction times at checkout are proven to lose your customers. According to a study conducted by Box, 41 percent of shoppers would abandon their purchase due to long checkout lines. Retailers run the risk of losing nearly half their sales to avoid the small percentage of processing fees. - The Cost of Accounting
Accounting is much simpler when there are clear records of each purchase with the amount, customer name, and date. Cash has no paper trail; digital payments provide detailed reports of each transaction which make accounting simpler and lower-cost since it requires less manual time. Digital payments eliminate the guesswork from accounting and allow for simple and seamless books. - At the Cost of Repeat Purchases
In today’s society, customers value their time more than ever. A long wait time dissuades consumers from visiting your store for repeat purchases. Research has shown that a shocking 81 percent of customers actively avoid stores where they perceive the lines to be too long. 74 percent of the consumers surveyed reported that they would prefer to shop at a competitor instead.
An intuitive and quick checkout experience that allows customers to pay with their preferred method is key to building long-term customer loyalty and ensuring satisfaction. If a business is looking to improve their operations, payment acceptance is an important place to start. Versatile and flexible payment solutions are sure to bring your business greater loyalty, increased market share and improved sales.
Contact us today for an assessment of how your business can easily integrate payments technology for the lowest costs in the industry. Call 862-236-5725 or www.ismallbusinesscredit.com
