The Intangible Costs of Vendor Credit Card Processing Versus Cash and Checks
When contemplating the costs connected with business accounts versus taking only cash or checks it is better to account for direct costs than to think about the entire story. There are several hidden expenses as a result of opportunities lost to a company not using Credit card processing services.At first blush it might seem that cash posseses an advantage over the use of checks or credit cards since there are no processing fees associated with it is use.However, there are other activities to take into account with cash, not the least of which could be the relative security and ease of use debit and credit cards provide.Cards have now largely replaced cash and checks for some purchases. Fewer individuals are holding cash as a result of this and cash spending has become limited by transactions with a low ticket price. In addition, because of concerns about identity theft, fewer people are writing assessments. Check always proof demands recording private information which consumers are unlikely to share with you. In order to handle problems concerning stolen checks, several stores demand pre-authorization for using them, and because of this problem consumers would prefer to use a credit or charge card.Cash has various other problems as well, large sums of cash are far more probably be vulnerable to employee theft, and although it is not often a large problem counterfeiting is also a problem. Because of the security situation some businesses such as for instance apartment leasing offices basically refuse cash.Cash is also an anonymous medium of exchange, if other businesses are concerned about dealing with thieves, and require a credit card which has an identity attached to it, then individuals who would like to keep off the radar should go to where they could deal in cash.If your business is not equipped to just accept credit and bank cards because you are concerned about the cost associated with business credit card processing, you should also ask yourself what the true costs are when doing business totally with money or checks.