Payments

Which payments businesses accept matters

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June 27, 2023 | John Clatworthy, SVP, chief customer and strategy officer, Cash Connect, a division of WSFS Bank

While technology-driven forms of payment such as credit cards, debit cards and mobile wallets have become more available over the past few years, consumers want the option to use the payment method that works best for them — including cash.

A 2021 nationwide study of 1,500 people by Cash Connect, a division of WSFS Bank and OnePoll revealed that 40% prefer to use cash as their payment method, and 51% of respondents agreed that using cash helps them budget their money, underlying the notion that cash remains a mainstay.

With higher interest rates motivating some consumers to use more cash versus credit cards, and potential risk of fraud deterring others from utilizing technology like electronic payments, it is possible that the number of consumers that prefer to use cash as their payment method has increased and will continue to increase.

There are many payment options and solutions available that can help businesses manage cash more efficiently and safely, allowing them to continue to offer a variety of payment methods to meet customer demand without adding stress on their operations.

Not sure where to start? Here are things to consider that could help you better manage your business' payment options and cash flow cycle.

Check out types of payments

To accept many forms of payment, you will need a merchant services account, available at many banks, which allows payments via Visa, Mastercard etc. to be transferred to your business bank account. Business owners should also check out online payment systems which allows you to make payments to anyone with an e-mail address through their credit card or checking account. Other popular forms of payment are mobile wallets, which provide ease-of-use with added security. You can work with your bank to help find merchant services that best fit your needs.

Make cash digital

Safety and efficiency are two very valid concerns that business owners and financial decision makers often cite about handling cash. By making cash digital, these safety and efficiency concerns can often be mitigated. Great — so how do we do that? Solutions like smart safes can help digitize cash. Smart safes allow businesses to deposit money directly into a secure safe that automatically calculates the amount of money deposited, removing human error from the equation. The money deposited is then available in the business' bank account the next business day, without having to visit a bank in person. Safety, check. Efficiency, double-check.

Move money more easily

Now that the money is in your smart safe – how do we transport it to the bank? Many businesses (75%) currently utilize the "cash to bank" method, meaning someone transports cash at the end of each day from the business to the bank to be deposited. This method is not only risky in that it leaves your business vulnerable to theft, but it is also inefficient from an operational perspective. Solutions like armored carrier management services can help mitigate these concerns. Once you have deposited your money in your smart safe, an armored carrier management service can assist in transporting the money from your business to your bank, removing human error from the equation and returning time to you and your employees.

Know your cash flow intimately

Managing a business' cash flow is one of the most essential functions in any company, as cash flow keeps businesses alive. It is important that business owners and financial decision makers know balances and accounts intimately. Technology and solutions can help. For example, the web-based dashboarding tied to smart safes allows merchants to quickly and easily track all of their cash deposits for each store, making knowing balances and accounts seamless. By knowing your current accounts, you can budget more appropriately and even uncover any uncollected or unpaid invoices. Similarly, this knowledge will allow you to better forecast for the months ahead, including preparing for the unexpected.

Finding the right balance of what works for your business and customers will help not only grow your business but deliver top notch customer service. Receiving payments is at the center of every business, and it is important to analyze all available solutions and technologies while keeping your business' immediate and long-term needs in mind.

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Cash Connect

Cash Connect is the nation's premier and longest standing vault cash and logistics provider to the ATM industry and now allows you to generate growing new revenue streams with Smart Safes, Recyclers and Kiosks.

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