Why are merchants and consumers more interested in cash?
While payment processing services have advanced dramatically in recent years, one of the most consistently reliable tools for small and medium-sized businesses continues to be the basic cash counter. Even though younger consumers are utilizing credit cards and other electronic transaction methods, traditional payments still play an important role in the retail industry.
A recent article from ATM Marketplace, a financial news website, said a large majority of businesses and consumers prefer to use cash over alternative methods. In fact, the source cited a recent study from Mercator Advisory Group that found the dependence on cash in many nations has slowed the adoption of new mobile transaction technologies.
While developments in technology generally lead to greater convenience, in the case of transaction processing, it has actually lead to reduced financial security. According to the "2013 Small Business Technology Survey," which was published by the National Small Business Association, information technology issues create a variety of obstacles for businesses that would otherwise consider using credit card processing services. The report found 94 percent of 800 small businesses surveyed said they are very concerned about cybersecurity threats associated with alternative payments like contactless transactions.
"These attacks result in significant losses of time and service interruptions, and typically cost these firms thousands of dollars," the report said. "Among those whose banking accounts were hacked, the average losses were $6,927.50."
As retailers continue to handle large amounts of cash, money counters can offer a variety of benefits. For example, Integrated Solutions for Retailers Magazine, the process of tracking daily sales numbers is often time-consuming and labor-intensive. Some businesses employ as many as four people per shift to properly handle cash transactions. According to the source, each employee may devote up to 18 minutes to the handling process.
Rather than running into trouble with costly human errors, stores can utilize cash counters to make the process more efficient and accurate. The use of such tools enables businesses to continue accepting payment channels that are convenient for consumers. At the same time, stores - and their customers - can rest assured knowing transactions are secure and less vulnerable to risk.
October 23, 2013