The events of this most recent holiday shopping season have emphasized the need for small and medium-sized businesses to invest in reliable cash and check scanners in the back office. As much as technology has advanced in recent years to move toward more convenient payment methods, credit and debit card security issues continue to be a substantial limiting factor in the widespread use of these tools.
Citing the massive credit card system hack that occurred at Target stores across the U.S. and Canada in December, the Las Cruces Sun-News, a newspaper published in New Mexico, argued that the financial services industry is currently behind the times when it comes to ensuring maximum security of information stored in banking accounts. The publication said many of the major credit card providers, such as Visa, MasterCard, American Express and Discover have since drafted a plan to release smarter and more secure cards by 2015. However, there is no system in place to prevent future account breaches from happening in the meantime.
The Sun-News cited data from The Nilson Report that found credit card fraud was an $11 billion global industry in 2013. In other words, the threat of risk of losing valuable financial information due to digital security breaches is real for many Americans. Consumers who are already wary of acquiring debt may be much more inclined to utilize cash for day-to-day purchases.
Bringing innovation to the low-tech world of cash
Retailers and other businesses must anticipate these trends to eliminate the risk of losing sales in the long run. According to the newspaper, Target has already experienced a drop in revenue as a result of the recent credit card debacle. A recent article in the online publication ReadWrite said cash is a much more reliable and low-tech solution for allaying many consumer fears in regard to the safety of other transaction methods.
The low-tech nature of cash often can often lead to inefficiencies in back office operations for companies. For example, managers and employees may end up spending long hours manually counting currency after the workday. However, this doesn't have to be the case with the right technology. In fact, investing in a high-quality cash counter can speed these tasks up in ways that allow staff members to dedicate more time to other important daily issues. Not only will businesses be able to boost productivity, but they will also be more prepared for larger changes in consumer behaviors - especially as more Americans consider using cash in lieu of credit cards to avoid security risks.
January 8, 2014