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They get 100 cents on the dollar as long as you ignore: - Counterfeit money, including when it's passed unintentionally - Robbery and employee theft - And/or
by clipsy 3y ago
They get 100 cents on the dollar as long as you ignore:
- Counterfeit money, including when it's passed unintentionally
- Robbery and employee theft
- And/or the costs of preventing/mitigating the above
- The risk/cost of secure storage and transport of large amounts of cash
- Honest mistakes like miscounting or misidentifying bills
- More employees required to sustain the same throughput of customers
I can't speak to specific amounts myself, but anecdotally a family friend who runs a small business ended up going cashless specifically to increase the amount of revenue that actually ended up going to his business rather than to the above (and other, smaller) cash-related nuisances.
- bell-cot 3y agoTrue. Though "cashless" payment does not lack for chargebacks, fraud, and other costs. And, at least around where I live (SE Michigan), the "bottom line" difference between the two is large enough that gas stations often give a ~3% discount for paying with cash, and more than one little grocer I go to has a sign up - "Please pay in cash if you are able. We lose X% to the bank if you pay with a credit card, and Y% with a debit card."
- clipsy 3y agoYeah, definitely; I don't want to suggest that being cashless is always the right choice. Merely pointing out that it isn't as simple as cash being 100% and credit/debit being ~98% -- a good business owner should try to understand the costs and risks of different approaches (cashless, cash-only, allow everything) for their particular business. As for checks, though: let's please get rid of them, because I personally don't want to be stuck in line behind someone writing a check ever again :)
- yyyk 3y agoOn the other end, some businesses get to do a bit tax avoidance with cash...