Cost of cash highlights importance of credit card processing services
October 15, 2013

Electronic payment systems can help businesses reduce overhead costs and generate revenue from additional channels. Advancements in technology have brought about significant changes in not only the ways in which consumers make purchases, but in the processing methods companies utilize to collect individual transaction information, as well.

These trends are now so ingrained in the marketplace that traditional payment channels are no longer as effective as they used to be. NBC's Today recently reported on a study from Tufts University titled, "The Cost of Cash in the U.S.," which found both businesses and consumers often face unexpected costs when using cash to make purchases. For example, businesses are more vulnerable to robberies and theft when keeping large amounts of cash on premises. On the consumer end, withdrawal fees from non-network ATMs can add up quickly. According to the report, cash transactions cost the U.S. economy nearly $200 billion a year, most of which comes from higher operational costs to enterprises.

Business Know-How, an online resource for small enterprises, said the ability to accept credit card payments at the point of sale as an alternative to traditional transactions creates a variety of benefits. Not only do such services lead to increased customer satisfaction by offering a high level of convenience, but store owners can more easily track daily transaction information and ultimately have more financial security.

Nexus: G-WEBCD3