Our Thoughts on the "Cash Only" Article by The New Times SLO
The New Times SLO - Cash Only
In December 2019, a local publication called The New Times SLO released an article that we thought was very interesting (link above). The article covered some insight on businesses in the area that still accept cash as their only method of payment. PolyPay decided that this would be a good opportunity for us to shed some light on the processing industry and how it has changed over the past few years. Read on to learn how we feel the benefits stack up in a business' favor for credit card rates and service.
After reading the article, there appears to be a variety of emotional responses that come up from those interviewed when they talk about accepting cards in the past: “Didn’t go well…” “Slowed things down…” “Jammed up the system...” Other commentary includes issues with tabs, chargebacks, collecting card information and obtaining signatures from customers.
Based on the reaction of those interviewed, it appears a large part of their disapproval in accepting payments other than cash stems from their payment system used rather than the payment itself. It is important to partner with a processor who can make sure your business is using the right type of processing solution to accept those payments while providing you with cost-effective pricing and readily available support.
PolyPay is fortunate enough to have a variety of customers in San Luis Obispo County and throughout the U.S. who accept many different forms of payment, whether that is through a traditional credit card terminal, point-of-sale (POS) system, website shopping cart or mobile device. A fair share of those customers even began accepting card payments for the first time when starting with us.
As we know, Cash is still King, but for a variety of reasons it can be deposed in favor of several upsides for taking cards:
Increased sales – Most businesses we have worked with experience an increase in both the number of sales and average transaction amount after starting to take cards for the first time.
Rates are lower than you think – Many merchants shun cards such as American Express for fear of higher rates. That is not the case anymore as rates have become increasingly competitive for all card brands. American Express acceptance also opens up merchants to more business-related customers who are more likely to utilize that card when travelling for business.
Data is also King – The best POS systems (when properly selected to fit the needs and goals of a business) can provide a business with invaluable information about their customer. This can include order preferences, average spend and contact and loyalty information.
The Customer profile continues to evolve – More customers are using a variety of different cards with different benefits attached to them such as “percent-back” savings or travel and mileage programs. Also, Apple Pay and use of mobile payments offers the ability for the customer to leave their entire wallet at home now to complete purchases.
As time goes on, the trend in payments will only continue to shift away from cash. Selecting a reliable and trustworthy processing partner and solution will benefit your business in ways that will broaden your customer base and maximize potential for profits, all while streamlining payments, whether it is cash or card.