For most merchants, cash has always been the name of the game. Long considered the preferred method of payment, it’s an exchange with “no strings attached.” After all, it’s worth face value – $5, $10, $20. There are no hidden fees, interest, and concerns about credit lines. But in the new world, this old way of thinking is quickly becoming obsolete. And the right Merchant Services Provider can help you understand this trend.
Case Studies Don’t Lie
Back in 2010, Visa published an extensive report making a compelling case for the growing cost of cash. Visa’s report states:
“The European Commission has calculated that the total cost to society of all payment methods including cash, checks, and payment cards equates to 2-3 percent of GDP…The EC estimates that cash accounts for more than two-thirds of the total cost.”
But why is it so expensive? It goes back to the check. Checks take more time to clear, whereas funds derived from credit and debit card transactions are typically deposited into the merchant’s bank account more quickly. This means faster payment cycles and improved cash flow for the merchant; ultimately resulting in increases profits. Some reports indicate customers will spend as much as 20 percent more with credit than they would with cash or checks – based on the speed and flexibility.
Reputable Merchant Services Providers
Given the rise in credit and debit transactions, it’s even more essential to align with a reputable Merchant Services Provider – one that understands the challenges of working with a Point Of Sale (POS) and can provide the most appropriate solution for each business. These providers are not only technologists, but experts in the ways to increase efficiency, productivity and drive revenue. Merchant Services Providers should guide the business across wireless credit card processing, loyalty programs and even check cashing and clearing, if necessary.
What About Security?
Credit and debit cards provide the utmost form of security via PIN numbers and signatures. Cash is only protected by a buyer’s ability to prove the transaction took place. An Investopedia article states:
“Using a credit or debit card offers more security than cash in most cases. For large purchases, carrying cash is often not an option and writing a check or getting a bank draft may be more trouble than it is worth for some.”
The fact is – processing credit and debit transactions at the POS carries the momentum. This is precisely why so many merchants are switching to Service Providers offering strong credit and debit payment services – including state-of-the-art terminals, next-day funding and advanced security.
Cash may have been king, but credit is quickly taking center stage for today’s merchants. It’s time to find a Merchant Services Provider who can guide you through the complexities of merchant services processing, payment types, saving you money and supporting your business growth.