Cash is king, right? For the increasing number of businesses that are going cashless, the answer appears to be “no”. More businesses are choosing to no longer accept cash payments at the point-of-sale. Debit and credit cards only.
Why are businesses choosing to no longer accept cash? Some say that with every cash transaction, payment processing slows down significantly. Others say cash is too risky; it has to be secured, counted and deposited. Cash is an easy target for theft, from those walking in from the street or from dishonest employees. In addition, merchants are often required to pay fees for cash deposits and for handling coin. Armored services for pick-up also cost the business money.
Merchants are now weighing the advantages and disadvantages of both options: cash and cashless. Each time a customer uses their credit card, the issuing bank withholds a transaction amount. On the other hand, customers spend more for certain purchases (especially dining and take-out) when they use their card.
Fraud can also be an issue with accepting card payments, but point-of-sale fraud is much less after the U.S. adoption of the EMV chip. Data collected by Visa revealed counterfeit fraud dropped by 70 percent between …