We’ve all had those moments. We go into a store, pick out what we need, and head to the counter. Then, we’re told that it’s cash-only. We haven’t got any cash. They’ve just lost a customer.Let’s not be too hasty, here. There’s obviously a reason why many businesses continue to operate with a cash-only focus. So, I’ve taken it upon myself to look at some of the pros and cons of going cash-only. Is it a good idea? Is it a bad idea? Let’s find out.
For those who want somewhat of a simplified experience, a cash-only focus might seem a lucrative option. There’s no waiting around for any delayed payments that might otherwise have caused a problem. There’s also much less bookkeeping that needs to be worked on, meaning that you don’t have to focus so much on the accountancy side of things.
Also, a big plus is that you don’t have to pay any transaction fees. These fees can range depending on the credit card company you use, and they add up over time. If you’re making tiny transactions, they might not be worth it.
Now, let’s look at the cons. The first is the obvious one – many people don’t want to pay by cash. They keep their cards on them as a routine, but they don’t always have money to hand. You might quickly find that this is particularly true of the younger generation, who often expect you to accept credit cards. This obviously limits your potential of making as many sales as you might have done.
Another big risk of taking cash-only payments is that you’re keeping a lot of cash on the premises at once. It’s an added security risk that might just leave you feeling a little uneasy. Investing in a safe is crucial, and making sure your security is tight is important to deter would-be robbers.
One other consideration you need to make is that the IRS might not be too happy with you. They’re always looking for a digital trail, and you haven’t got one. This means that they might just make it harder for you to go about your dealings with them, causing hassle.
So, what’s the verdict? Ultimately, it depends on what type of business you’re running.
Implementing the ability to take credit card payments is important for many types of businesses. Still, this is only the case if you can find a company that provides you with a good service.
Analyze what’s out there and pick something that is financially viable. While you’re at it – don’t forget about modern technology like contactless payment abilities. Those extra add-ons might just make you additional sales.
If you’re adamant on remaining a cash-only business, that’s OK too. However, it’s important to identify whether your inability to take credit cards will become an issue.
What’s the demographic like? What size of payments will you regularly take? Where’s the nearest ATM (seriously, this is important!). Factor it all into your decision, and come up with the best solution for your business.