It has been estimated that most consumers carry less than $20.00 cash at any given time. This is due to personal security, tracking spending -- and simply because society has become used to using plastic for purchases.
Businesses are finding their "cash only" policy is hurting profits. By relying only upon the cash a consumer has in their pocket they are losing sales. Other than groceries and gas, most purchases are "impulse buys". Allowing a consumer to purchase with a debit or credit card allows a business to capture a sale while the consumer wants it. A delay caused by sending consumers to the nearest ATM allows the buyer time to decide if they really NEED the item.
. . . Or, pass a merchant with the same product who accepts plastic.
Consider the buying power a consumer has with a credit or debit card. The purchase limit may be from $500.00 to $10,000.00 -- or no limit at all! (Black American Express, anyone?) Legend has it Charlie Sheen once purchased a brand-new Porsche on his American Express Gold Card. The dealer's willingness to accept a credit card insured the transaction happened IMMEDIATELY!
So, what keeps cash-only businesses from choosing to serve more customers? Some may wish to remain cash-only for tax purposes. As 80% of purchases are now conducted via credit or debit card, a cash-only policy only places a target on the business. Some businesses may think the processing fees take money out of their pocket.
Higher rates take more money -- but working with a reputable company can keep the fees low.
Consider the advantage your business gains by accepting credit and debit cards. If 8 out of 10 consumers have to trudge to an ATM to acquire cash to make a purchase -- that's 8 out of 10 sales a business allows to walk out of their business before completing a transaction.
It's time businesses gave themselves access to a consumers true purchasing power and allow plastic to be part of their business practices.
For more information about credit card processing, or for a free review of your business' current transaction fees, contact Paul of Z Companies at 435-467-8074 or Paul@ZComNow.com
