AUGUST 28, 2013, Mt. Prospect, IL—While some people choose to pay with credit cards, cash transactions are still alive and well. Consumers have always enjoyed using cash for multiple reasons – it’s accepted everywhere, it’s easy to manage, and there’s no risk of fraud to the consumer.
Cummins Allison, the leading innovator and provider of currency, coin and check handling solutions, reveals some new reasons why shoppers are turning to cash and how retailers can be prepared.
Traditional Payment Methods on the Rise
According to the Washington Post, the amount of cash in circulation jumped from $803 billion in 2007 to $1.18 trillion in 2013. Economic conditions, personal preferences and shopper confidence levels are three new reasons why retailers may be experiencing a sudden influx in cash payments.
Under-the-table work. The severity of the recession and its profound impact on the U.S. economy has resulted in an increase in “under-the-table” work, where employees are paid in cash. This underground economy results in many shoppers relying on paper currency, rather than credit cards, to make purchases.
Cash offers anonymity. More and more people are drawn to cash because it’s untraceable. Those who rely on cash for this reason aren’t necessarily making illicit transactions. Rather, they may be trying to avoid excessive marketing that often comes along with credit card spending, or they want to avoid scrutiny from other people or entities that can come by way of using credit cards or checks.
Increase in consumer spending. Even though consumer sentiment has declined to some degree, consumer spending numbers continue to come in strong. In fact, a measure of consumers’ views of current conditions rose to a five-year high in July as employers stepped-up hiring, and more Americans said they planned to buy homes, cars and appliances. This surge in confidence may very well result in an increase in cash transactions.
Retailers Must Prepare for Non-Credit Card Purchases
As more consumers turn to cash to complete purchases, retailers must be ready to handle these transactions seamlessly. While staffing more employees may help businesses as they attempt to serve more customers, it won’t necessarily help them manage transactions more quickly. By investing in a currency scanner, however, retailers can improve cash management, cash office processing and customer assistance.
Fast and accurate transaction management is a must for retailers experiencing a surge in business; providing the opportunity to eliminate time-consuming manual bill counting, which is often unreliable. For more information on the benefits of currency counting and scanning equipment, visit http://www.cumminsallison.com/currency.
About Cummins Allison
Cummins Allison is a global leader in developing solutions that quickly and efficiently count, sort and authenticate currency, checks and coin. With a heritage of leadership in technology and product innovation spanning more than 125 years, Cummins Allison serves the majority of financial institutions worldwide, as well as leading organizations in retail, gaming, law enforcement and government. Ninety-seven percent of our customers recommend our products and services. CA holds more than 350 U.S. patents and invests double the industry average in R&D. Our world-class sales and service network includes hundreds of local representatives in more than 50 offices in North America, 4 wholly-owned subsidiaries in Europe and is represented in more than 70 countries around the world. For more information, visit cumminsallison.com.
Carol Moore – Vice President Marketing
Cummins Allison Corp.
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