Staying Cash Only Is A Big Mistake

What is the worst mistake that a small business owner can make in 2014? According to Gene Marks on Entrepreneur.com, that would be running your business “like it’s still the 1960s.” In other words, when he comes across a store that still doesn’t accept credit cards, he can’t imagine how it remains in business. He surmises that they must truly have loyal customer bases.

Restaurants, convenience stores, gas stations and “little shops” are among the most popular culprits for businesses that are still “cash only”, according to Marks. And they are all making big mistakes. He notes that big-named businesses never make the mistake of turning away customers because they don’t have any cash on them. He notes that many people don’t even walk around with any cash at all these days.

He also believes that it’s a big mistake to have a sign that reads “we only accept credit cards for purchases over $10.” This inconvenience given to the customer is bound to turn many of them away. In addition, he insists that it presents quite the unlawful image to would-be patrons. This is especially true in restaurants where some owners attempt to report only those transactions paid for by credit card.

“Don\’t you think the IRS is smarter than that?” asks Marks, “If they choose to audit you, don\’t you think a 12 year old could stand in your store or restaurant for a few days, tally up your average receipts and extrapolate over a year\’s worth of business to reasonably estimate your revenues? And if that number is significantly different than the one you\’re reporting because you\’re oh-so-smart and only taking cash and hiding receipts, don\’t you think you\’ll raise a few eyebrows?”

Some businesses tend to remain “cash only” simply to avoid paying taxes, believes Marks. “Not a good model to follow,” he insists, “You will get burned.” Marks speaks to a major misnomer about credit card acceptance – that it’s too expensive. Many business owners who insist upon only accepting cash are uninterested in paying the fees associated with credit transactions.

They assume that the fees won’t be worth the inevitable gain in overall sales. But they couldn’t be more wrong. Research has shown that providing customers with the convenience of paying with plastic only gives them reason to keep buying from you. Even after the fees are paid to your POS provider, you are earning greater profits thanks to the service.

Thankfully, Canadian POS Corporation provides top-notch POS terminals at the most affordable rates in our industry. So give us a call today at 1-877-748-2884 to get set up to accept credit and debit cards. It’s 2014. Can you truly go any longer with this whole “cash only” thing? According to Marks, “remaining cash only may not only cost you new customers, but keeping the ones that you have.”

He writes that no matter what your business offers, it is very likely that there is another business that offers the same thing while also accepting credit and debit cards as methods of payment. “Cash is going away,” insists Marks, “We live in a world of credit cards, mobile payments, online banking, wire transfers and Bitcoin.” Let’s make sure that you are part of that world!