There was a time when cash was king, but those days are gone. It’s still the most frequently accepted payment type – who wouldn’t want to accept cash? – but it can be quite frustrating for the rapidly growing number of customers that rarely carry cash.
Running a Cash Only Businesses
Of course, there are still many advantages of carrying cash. When you’re on a budget, cash is a great way to limit your expenditures. Because of its wide acceptance, it’s the most liquid form of payment. But, while cash is the most widely accepted form of payment, plastic is quickly becoming the most widely used form of payment by consumers.
However, because of common myths, businesses are often reluctant to accept any form of payment other than cash. Allow us to dispel some of the myths behind why businesses aren’t branching out to accept credit cards:
Common Myths on Why Businesses Don’t Accept Credit Cards
Expensive Credit Card Equipment
Until recently, the machinery used to accept credit cards has often been bulky and expensive. However, in recent years credit card processors have created a way to accept credit cards using only a smartphone and an inexpensive, sometimes free, card-reading device. There are all kinds of card-reading technologies available for a variety of price points.
Fear of Fraud
Identity theft is one of the biggest concerns when it comes to credit card processing. However, processing companies have gone to great lengths – and continue to do so – to enhance the security of credit card transactions. Accepting credit cards is safer now than it’s ever been.
Cash is Quicker
There’s no arguing that cash is immediate, but you can receive funds from many credit card processors as quickly as 24 hours from the time of transaction.
Steep Transaction Fees
The credit card processing field is competitive, meaning that finding a good deal isn’t very difficult. Because of that, you can find good, contract-free rates as low as 2.75% per transaction or 1.65% with a contract.
The Benefits of Accepting Credit Cards
In general, when you open up your cash-only business to accept additional forms of payment, you can expect to make more money. Vendors at a Washington farmer’s market reported seeing a 30% increase in sales when they began accepting credit card and debit card payments. Here are some ways your cash-only business could benefit from accepting mobile payments.
Set-up is Easy
Set-up generally requires an application with a merchant service provider. They can have you set up to begin accepting payments the next day.
Carry Less Cash
Operating a cash-only business poses a security risk to business owners because of, well, all the cash. By accepting credit cards, you’ll cut down on the cash you have on hand each day.
Make More Money
It’s really as easy as that. When people have access to more resources, they are more likely to spend more. People can be impulsive, and increasing an individual’s purchase is easy when there’s not an immediate limit on what they can spend. Accepting credit cards opens up your business to a world of opportunities.