<img height="1" width="1" src="https://www.facebook.com/tr?id=290139088601498&amp;ev=PageView &amp;noscript=1">

Is Being Cash Only Bad for Business?

Though it may seem easier and cheaper to keep your business cash only, there are many reasons to start accepting credit cards as well.
January 06, 2017 3 minute read

Is Being Cash Only Bad for Business?

Owning a small business is hard enough.

You have to worry about staffing, rent, producing a great product and getting your businesses name out there. You consider various marketing efforts and you hire awesome sales people with the glimmer of hope that your little business baby will take off and you will become a billionaire.

That’s right, you’re flying right past millionaire.

One thing that some small business owners don’t even think about is whether or not they should remain cash only—until all they can think about is whether or not they should remain cash only.

It just seems so daunting. Getting credit card processing equipment, paying those extra fees, dealing with a card being denied or a disgruntled customer fighting a payment…Going all “technology” just seems like a headache.

Not to mention those pros of being cash only:

  • You get your payment immediately—right there and on the spot
  • Your book keeping is cleaner
  • Your risk of fraud lower
  • You don’t have to deal with any of those third parties that charge processing fees
  • You could even, um, declare lower sales to the IRS


"I can’t even count the amount of customers that ask me when we were going to start accepting credit cards."

But you can’t help but wonder if accepting plastic will boost your business, your livelihood, and your dream of becoming a billionaire. (Disclaimer: we are not saying you will actually become a billionaire if you accept credit cards.)

According to Alyssa Wiedman, operations manager of a cash and check only dance studio in Queens, New York: “I can’t even count the amount of customers that ask me when we were going to start accepting credit cards. The whole cash or check only thing is just very inconvenient for them. Some of our customers actually are pretty annoyed about it.”

During a time when convenience is at the forefront of everybody’s mind, carrying cash around is just another thing that busy consumers don’t have time to think about.

“Personally, I use my card for everything,” says Katherine Damo, a 26-year old New Yorker. “There have been times I left a store because it was cash-only and I knew I didn’t have money on me.” This is a major con of being cash only: losing customers and, in turn, sales.

According to the Huffington Post a massive 66 percent of sales made in-person are made with a credit card, and furthermore, the use of cash during in-person transactions is expected to drop to only 23% by this year.

One psychological study also revealed that people who use credit cards are more likely to spend more than those paying with cash. This ties in to theory that most consumers don’t feel like they are spending as much when they use a credit card, because they aren’t physically handing the money over at the point of purchase. Consumers are also more likely to make large purchases on a credit card, rather than walking in to buy a new television with a fist full of green.

Of course accepting credit cards does come with processing fees, but many small businesses feel that being more accessible to a wider customer base outweighs the con. Plus, with the help from the right credit card processing company, you won’t feel as if you’re paying a ridiculous amount for inadequate payment services. And other businesses charge a small additional fee to consumers who use a credit card in order to get some of that money back.

Today, technology has brought credit card processing to new and more convenient heights for a small business owner. Companies like MerchantPro Express, a merchant services provider based in New York, make credit card processing the most convenient (and cheapest) it has even been.

In the end, whether to upgrade from cash only for your business is a per-case decision. Some businesses would benefit greatly from the transition while others are comfortable doing what they have always done. Either way, it’s important to understand both the pros and cons of both business models, and choose the one that would get you to where you want to be.

Learn more about MPX and the importance of accepting credit cards.

Topics: Merchant Processing

For additional information please call MerchantPro Express at 888-333-1374 or email info@merchantproexpress.com.

Leave a Comment

Is Your Business EMV-Compliant?