Businesses in Canada are at risk if they do not progress with modern technology and consumer trends. That is if they continue to accept cash-only as a form of payment.
Supporting evidence in a study conducted by the Rotman School of Management shows that businesses who use “cash only”, hurt themselves in the long term and will be lost by competitors who adopt electronic payments in form of credit card, debit card, mobile payments and NFC payments.
In addition, a recent article by the Globe And Mail highlights that for businesses that do accept credit cards, the benefits of accepting credit cards far outweigh the costs of the 2-3 percent transaction fees associated with accepting credit and debit.
They also suggested 10 tips that we feel are very relevant if you are a business concerned about transaction fees.
Cash Is Not Free
The direct and indirect costs from cash include, processing time – counting, re-counting and waiting to be deposited, security, security personnel, and lost cash by theft or error.
Accepting credit and debit can help your business operate ethically, this means no lost or unaccounted cash.
Credit Card Processing Enables Higher Average Sales Price
People are carrying less cash these days, and cash is typically used for lower value transactions. Use this opportunity to increase your ASP for the convenience of the consumer.
Customer Service Comes First
If the majority of your customers have cards that offer rewards, let them use their cards at your location. Make purchases quick, painless and easy. This even gives your employees more time to spend interacting with customers instead of counting cash and dealing with a register.
Go Beyond Bricks & Mortar
Payment processing companies have the tools to allow your business to operate online as well as in-store. This way you can sell your goods from anywhere and increase your market share.
Support International Customers
If you live in a major city, chances are you’re getting visitors from all over the world in your business. Don’t limit yourselves by not accepting their cards if they don’t have cash on had.
Speed Up Your Cash Flow
With payment processing for credit and debit cards online and in store, funds are transferred immediately into your merchant account and then directly deposited into your business account shortly after.
Data Is King
According to the study and the Globe, “[Data analysis has] allowed for the development and deployment of strategies that have enhanced sales, customer satisfaction, repeat business and hence business growth and profitability.” - Globe and Mail
If you use payment processing you are given all of this great data in store or online to leverage. Use it to offer a better customer experience, cut costs where needed and create efficiencies.
Cost Benefit Analysis
Typically the benefits outweigh the costs for payment processing. If you aren’t sold by now, conduct a cost benefit analysis and realize the difference with increased throughput and other opportunities that come from accepting payments. At the end of the day your fees end up being a minimal expense.
Get A Good Point Of Sale System
Having several check out stations or faster payments acceptance like contactless will make transactions effortless and provide a better customer experience. Consider renting terminals to try different solutions before purchasing one.
Canada is one of the most affluent countries when it comes to technology. Although change can be hard, it’s worth adapting to consumer demands. Digital opportunities provide better service and according to the report outlined in the beginning, the upside is significant.