Can you imagine only taking cash? In fact, the cannabis industry has to almost exclusively do exactly that as Visa and MasterCard rules do not allow them to take card payments. But what does running a cash-only business really look like and how much of a headache would it really be to ditch the card networks in favor of real currency?

Why Would Anyone Go Cash Only?

There are a wide range of potential benefits from ditching non-cash payments in favor of physical currency, including:

• Protection from chargebacks
• No waiting for payments to clear the bank
• No paying for point-of-sale credit and debit card systems
• No worries about PCI compliance or cardholder protection at the point of sale

It should probably be mentioned that accepting ONLY cash is perfectly legal. There are no federal laws that say a retailer has to participate in card networks to accept non-cash payments. It would be a serious problem if there was, considering the amount of money the networks charge in fees to participate on their digital rails.

That brings us to the primary reason most businesses choose to go cash-only – fees. Credit and debit card companies charge a percentage for every single transaction. Unfortunately, that percentage can chew heavily into the bottom line.

Stores that sell small dollar items can be the hardest hit as their profit margins are so small. A $1 purchase minus a 4% fee is only $0.60, quickly removing what little revenue would have been made on the sale.

Ultimately, going cash only means the store receives its profits faster, retains more profit and protects customers’ digital accounts. But clearly cash-only can’t be all sunshine and rainbows or more businesses would avoid non-cash payments.

Why Bother with Non-Cash?

Cash is the most popular form of payment for purchases under $25. Anything above that amount and most customers will want to pay with debit, credit or prepaid. So, going cash-only could risk alienating or upsetting consumers. In some cases, it might even cost you some sales.

But there are other risks when it comes to cash-only business, including the time it takes to count, audit and deliver cash and coin to the bank. Then there is the potential security risk due to employee theft, counterfeit bills and robbery. Finally, any cash-only business has an increased risk of audit as there is less of a paper trail to verify all profits are fully accounted for.

Whether You Choose Cash-Only or Not, An On-Site ATM Can Help

To go cash-only or diversify payments is an in-depth decision that must consider the business’s ticket size, customers and non-cash fee losses. But whether the business accepts cards or not, there are simple ways to encourage cash payments whenever possible – like placing minimum purchase requirements for cards and having a highly visible on-site ATM.

Prominent store-based ATMs can give customers basic financial services such as account balance inquiries, balance transfers, and fast and easy access to cash. On-site machines also open up new opportunities for retailers struggling with the cash-only versus card dilemma – by providing an easy way for customers to grab cash for their purchases.

So, whether your business goes cash only, implements minimum purchases or decides to accept multiple forms of payment, an ATM makes sure customers have an easy way to meet their needs and pay for their goods.

Find out if your business qualifies for a free, turn-key ATM.

Contact BFC Enterprises today!