If you run a business that only accepts cash payments, have you ever lost a customer’s business or had to direct them to the closest ATM when they realised they couldn’t pay via card?
Situations like this can be frustrating for both the customer and the business, so it’s no surprise that new research from the Australian Taxation Office (ATO) shows that a ‘cash only’ approach to payments could be damaging to small businesses across Australia.
Customers views on cash only payments
The ATO’s research revealed nearly half of Australians felt inconvenienced when confronted with a ‘cash only’ sign, and “inconvenient” was one of the top words used to describe ‘cash only’ businesses.
As we move to an increasingly cashless economy, consumers are also becoming increasingly sceptical of the motivation for refusing electronic payments, with two-thirds simply assuming that these businesses aren’t paying the right amount of tax.
This is unfortunate because most ‘cash only’ businesses are run by honest, hardworking Australians. These people are a valuable part of our economy but many continue to run their businesses as they have for many years and believe ‘cash only’ is what is best for their business.
Benefits of electronic payments
With more than 90 per cent of businesses accepting electronic payments, there are clearly a number of additional benefits to this payment method.
In addition to customer convenience, electronic payments are more efficient and secure than cash payments, and also make it easier to keep detailed records.
You could also be missing out on opportunities to make your businesses easier to run by operating as ‘cash only’.
Investigating different payment options
With customers desiring the flexibility of cashless payment options, and with new technologies making it less necessary to carry cash, it may be time to investigate different options.
In addition to payment facilities provided by banks, there are a range of online apps and service providers that can provide you with a range of electronic payment options to suit your business.
Visit the ATO website for more information on electronic payment systems, including tips on how to choose the right system for your business.