You have been in business for many years. You always accepted cash only. For many years it seemed to work well for you. You showed a substantial profit every year. So why bother accepting debit and credit cards that eat into your overall profits? You’re not losing money, right?

WRONG! Your cash-only business may look good on paper. And it may be good enough. But, it could be better. Accepting debit and credit cards opens you up to a world of customers that you are otherwise missing. Read on to learn the four reasons a cash-only business is costing you money.

1. You Ignore COVID-Conscious People

In case you haven’t noticed, we have been in a world-wide pandemic for over a year. As a result, people are still frightened to touch anything that everyone else has touched. These items include cash. Many people who previously used cash for most transactions have switched to using debit cards. They receive the same benefits as cash (no interest fees and directly related to the money in a checking account), yet they do not have to carry something that can carry the Coronavirus.

2. Young People Do Not Carry Cash

An entire demographic of shoppers (those with the most disposable income) rarely carry cash. They either carry credit cards, debit cards, or use their phone’s pay systems to make payments for items when out and about. By accepting cash, you are ignoring the largest demographic of shoppers and customers you may have. This demographic has more money to spend, therefore potentially tripling your profits. You cannot afford to ignore this group of people by only accepting cash.

3. Travelers May Refuse to Carry Cash

Another group of people that have money to spend are those traveling away from home. Anyone who travels to a destination has money to spend that people who live there may not have. Yet, these people want to avoid cash as much as possible. They understand that cash can be stolen and never recovered. However, a credit card can get stolen and charges can get investigated. Furthermore, theft of a credit card does not affect their bank account. Therefore, if they carry any cash, it is very little. They likely will only shop with credit to keep themselves and their assets safe from theft when traveling.

4. You Are Less Likely to Be Subjected to an IRS Investigation

Cash businesses are often an IRS target for audits and investigations. While your business is legitimate, many cash-only businesses are not (Remember Mac and Mancos). An IRS investigation and audit can get extremely costly to defend. You must hire lawyers and spend time away from work to defend your business practices. Steering away from a cash-only model can help keep the IRS at bay.

If you are ready to move on from your cash-only business and earn that revenue you are currently leaving behind, contact Tanker Consulting Services at 609.922.0201. We will review your options to help you find the most cost-effective options for you to accept credit, debit, and touchless payments in your business.