It’s clear that fewer people are using cash and more people are using credit cards for all of their purchases.
Only about 23% of all retail sales are made with cash.
We use credit cards at the doctor’s office. We use credit cards at the convenience store. We pay for a cab using a credit card. Lawn services are taking credit cards.
Cash is dying.
I know that many smaller retailers and food establishments still discourage the use of credit cards.
The bottom line is that accepting and encouraging credit card use can double your sales and should make your business more profitable.
I understand that the credit card processors take 1 to 2% of your total sale away to do their processing…but according to the Aite Group research,taking cash costs you 40% more than accepting credit cards. “The reason for the higher costs for cash include a variety of factors including loss from theft, damage and paperwork errors.”
I’ve been in the point-of-sale business for a long time and I understand that many business owners prefer cash for reasons other than saving on credit card fees.
It does appear that cash is quickly going away and that encouraging credit card use may be better for your business.
U.S. consumers are favoring the adoption of chip and pin credit cards. The technology just hasn’t taken off yet in the United States. However, Great Britain and other countries have made the transition and it has cut down fraud by 75%.
Here’s how the Chip and Pin technology works. A small chip is embedded in your credit card (in place of a magnetic stripe reader). At the end of a transaction, you enter your four-digit pin number and the transaction is completed without your signature.
Consumers love it. The forecasts are that this is the technology that will soon be used in the United States.
Read more about Chip and Pin technology and the 40% additional cost for cash transactions at:
U.S. Consumers Ready to Adopt Chip-PIN Credit Cards, Survey Finds