Why 'Cash-Only' Isn’t an Option for Small Businesses in 2015

By the Small Business Content Developers at BizLaunch.com

Small businesses may prefer accepting only cash and checks to keep costs down, but by failing to adopt alternative payment methods, they’re missing out on a serious opportunity to capitalize on those who use credit or debit cards to pay for their purchases.

The truth is that companies can no longer get by without accepting some sort of plastic. As the growing trend in credit card payments continues to rise, businesses that only accept cash will quickly find themselves losing sales to competitors who are equipped to process credit and debit card payments. In short: if business owners don’t adapt, consumers will decide for them. Here are five reasons why accepting plastic is the smart thing to do.

1. It reduces risk

Unlike a check which can take days to clear, you’ll receive immediate feedback as to whether a customer's credit or debit card payment has gone through—and you won’t have to visit a bank to deposit cash and checks. What’s more, in the event of theft or a robbery, the amount you stand to lose is limited to the amount of cash you have in the register.

2. It can lead to more sales

Today’s savvy-shoppers don’t tend to carry large amounts of cash, and instead use credit cards for the added security they offer and the rewards points they receive. If you’re not offering these customers advanced payment options, you’re losing sales. Additionally, accepting credit cards improves your chances of selling more expensive items as consumers can pay their credit card bill over time while the credit card merchant pays you the full amount right away.

3. It shows legitimacy

Allowing credit card transactions will not only help establish your status in the marketplace, but it will also give your business a level of legitimacy and can help instill a greater sense of trust and satisfaction in your customers.

4. It saves your customers time

Customers don’t want to waste time when making purchases. When shopping, they want their transactions to be processed in a timely, convenient and uncomplicated manner, and having a credit card facility will help you offer them the kind of buying experience they desire.

5. It helps with cash flow

Did you know that accepting credit card payments can help improve your cash flow? Credit card payments can be quickly authorized unlike money orders and checks which take days and weeks to clear. Even if you don’t see an obvious increase in your sales figures, your business will immediately benefit from the convenience of having cash from credit card sales deposited to your bank account instantaneously.

Making the transition from a cash-only business to one that allows customers to pay with plastic may seem like a difficult and complicated decision—but it needn’t be. These days there are a number of products and services on offer that make payment processing simple, that are specially designed to suit the unique needs of your business. Whether a merchant account service or a mobile payment solution is right for you, giving your customers up-to-the-minute payment options has never been easier.