Should Your Business Go Cashless? Our Attorneys Discuss Your Options
Many businesses have decided to go cashless and accept only card and digital payments of late. Just between 2010 and 2014, the share of transactions that did not involve cash grew by 20 percent. In addition, paying by credit or debit card was the preferred way to pay for 75 percent of consumers surveyed.
However, before you decide to go cashless with your business, there are several key questions you should think about. Below, we discuss some of the pros and cons of this transition, and why working with an experienced business transaction attorney is crucial if you are thinking about switching over and having your business go cashless.
Will It Save Time?
Most businesses that go cashless do so in order to save time. Businesses that only deal in card payments save time on transactions, and feel that they can better prioritize staff time on customer service (instead of staffers making trips to the bank to get change, etc.). All credit and debit transactions also pass through a computer system electronically, allowing for automatic management of accounting and inventory. Going cashless also eliminates a certain amount of security risk.
What Would Your Customer Prefer?
Going cashless arguably translates to faster, shorter checkout times. Still, before you make a transition to cashless, it is crucial to know your customer: what are their payment habits and preferences? According to studies done, 83 percent of individuals between ages 25 and 34 indicated that they would rather use a credit or debit card than pay with cash. However, if your customer base is older, their preferences might be different, and some might not even have a digital payment option.
Keep In Mind: Going Cashless Will Cost
It is also important to note that there are processing costs, as well. Credit card issuing banks withhold approximately two percent of the transaction amount they return to you to cover their own processing costs. However, these costs tend to be lower for debit cards because they do not carry the rewards programs that credit cards do.
Still, those who favor going cashless point out that cash transactions can be a big source of loss such as through employee theft, and thus going cashless can be beneficial.
What Does The Law Say?
Private businesses are not legally required to accept U.S. currency—federal law leaves these payment decisions up to states—and Massachusetts is the only state law that bars discrimination against a cash buyer via requiring the use of credit.
Florida Business Transaction Lawyers
If you are looking to make major changes to your business in Florida, speak with one of our experienced Sarasota business transactions attorneys today to help you with the decision and process. Suncoast Civil Law’ attorneys can help you ensure that this transition is the right one, and that it goes smoothly.