Handling cash costs more on average at least for smaller businesses than typical card fees.
It's typical to estimate the cost of handling cash anywhere from 4% to as high as 15% depending on takings and size of transactions.
It's typical to estimate the cost of handling cash anywhere from 4% to as high as 15% depending on takings and size of transactions.
Smaller family-owned businesses will just take cash to the bank - but it's super common for somebody to eventually surveil them long enough to rob them one day as they're transporting the cash to the bank.
It's pricey to handle cash!
Ran a micro business in UK for 15 years, cash cost as much to deposit as card did - employee time (counting, reconciling, making deposit) and bank charges for cash deposits. It also slowed down transaction time (which was almost all IRL).
E.g. they might not include staff time and incidental costs around cash transactions that aren't obvious because they're not linked to the individual transactions, such as reconciliation, time spent transporting the cash, costs of depositing the cash, insurance to cover storage of cash.
Also consider that it takes very little theft to tilt the balance, and even a tiny amount of theft by cashiers not putting through all cash transactions can make a big difference.
Yep. I worked as a supervisor in retail for a number of years and here's a list of cash handling costs that dont exist with card payments:
Making change on each transaction
Counting cash drawers in and out for each employee shift
Preparing daily bank deposits
Going to the bank to make deposits and get new change
Theft (by employees, external theft wasnt a problem for us)