Will That Be Cash or Credit?
by JamieD, Former Moderator
- Created: March 24, 2010, 12:03 am
- Updated: February 16, 2011, 3:44 pm
The Small Business Cents blog recently published an article on accept debit and credit cards:
Accepting Cash Only
Accepting cash is the most commonly accepted and reliable form of payment for a business. Many small businesses today still operate as "cash only" merchants. Years ago this wouldn't have been uncommon but with today's advances in technology, business owners must ask themselves if they're hurting their bottom line by limiting payment options. If you're thinking about starting a "cash only" business or if you're considering expanding your current payment options, be sure to go over the pros and cons of only accepting cash before you make your decision...
Pro Cash payments ensure merchants that they receive funds immediately. Upon each transaction, the merchant immediately has the appropriate amount of cash in hand without the worry of waiting periods or not getting paid at all.
Pro Cash is the simplest form of payment and therefore involves less bookkeeping. For a business, not only means less stress and hassle, but it also may save money in the time and labor it would take for a bookkeeper to maintain additional payments.
Pro There is limited risk of fraud when accepting cash only. Although there have been cases of counterfeit money, it's much less common than other types of fraudulent payment.
Pro "Cash only" merchants don't have to worry about third-party factors or fees that come with other payment options.
Con Because customers are carrying less cash with them than they used to, it is no longer the most popular payment option. If you sell higher priced items, there is a good chance that a consumer would not have enough cash on them to make the necessary payment.
Con Your business may lose customers by accepting cash only. As card payments become more and more popular, many consumers expect this to be an option when making purchases. If they find that a particular store only accepts cash, they may feel inconvenienced and seek out a competitor where plastic is accepted.
Accepting Card Payments
Card payments have become significantly more popular over the last decade. They are convenient, flexible, and have become increasingly important in business commerce. If you're business is considering what forms of payment to accept or if you'd like to expand the payment options of your "cash only" business, be sure to go over the pros and cons of accepting card payments.
Con Card payments come with an increased risk of fraud. Although there are laws and security measures that help.
Consumer Credit Law: An Introduction to the Fair Credit Billing Act
Message Edited by JamieD on 11-03-2009 01:20 PM
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