Is cash dead?

A Greenwich Village restaurant in New York City has stopped accepting cash payments from diners and now only accepts credit or debit cards. The owner claims it has expedited payment and reduced concerns about employee theft and after-hours bank deposit security concerns. Also, by transferring his entire income stream to his merchant account, he hopes the increased volume will result in a reduced rate. from your bank card processor.

In Miami, Florida, a new cashless fare policy will be implemented soon. Instead, passengers will load funds onto special debit cards. The cards will be “contactless”, meaning the passenger simply taps the card against a terminal and the fare is paid and deducted from their card balance. Miami operates an extensive public transportation system in one of the largest counties in the United States, and its system includes not only hundreds of buses, but also the Metrorail elevated train and downtown’s elevated, driverless People Mover system. The cost of counting and processing the large daily load of paper dollar bills and coins has become prohibitive. Riders can still purchase weekly or monthly unlimited ride passes.

These are just two examples of a growing global trend. Cash handling requires extra security and employee background checks and there is always a risk of robbery at the store or perhaps while making bank deposits late at night. Banks often charge business customers for obtaining rolls of coins and bills needed to store cash registers and give change.

The cash register itself is now increasingly being replaced by a point-of-sale (POS) system that has the ability to scan barcoded merchandise and swipe plastic payment cards, including credit, debit, gift, and credit cards. loyalty, and get instant approval through a high-speed Internet connection. The steel “cash” drawer below is becoming almost an afterthought and more often than not a storage drawer for signed customer receipts.

The Internal Revenue Service always takes a closer look at the tax returns and accounting records of traditional “all-cash” businesses that often hide income or are involved in illicit money laundering schemes. Accounting is simplified when all payments are processed electronically and deposited directly into the business checking account, and those bank records are easily integrated into any standard accounting software program.

And if cash is dead or dying, paper checks are definitely terminal. Those businesses that still accept checks from their customers now almost always use a check verification process that compares the customer’s bank account number and driver’s license to a national database of bad checks and then electronically approves and processes the check. transaction as an ACH debit from the customer’s checking account that is deposited directly into the merchant’s own business checking account. The paper check is then returned to the customer as a receipt. No need for a daily trip to the bank to deposit checks! This electronic check conversion process is secure and has eliminated the risk of bounced checks, but it is still more time consuming than accepting the customer’s check card, and for this reason, many businesses no longer accept checks. Even business checking customers often receive a debit card from their bank to make purchases. In addition, it is often recommended that monthly bills be handled as automatic debits from the customer’s account or paid through your bank’s online bill payment system.

For both consumers and businesses, the new federal Checks 21 regulation has made life easier. A paper check can be scanned and emailed or transmitted to your bank and deposited with remote deposit. The new regulation establishes that said electronic image of a check is as valid as the presentation of the original check. Bank of America’s ATM system now directly scans deposited checks, no envelope is used, and the deposit is credited instantly.

We are in the 21st century and we are truly entering a world without cash. A company that does not use these and future electronic payment systems is wasting time and money and will find itself increasingly inefficient and at a competitive disadvantage.

Your free expert advisor for electronic payment processing is your account executive with your merchant service provider. They are familiar with all of the above strategies and can set up your accounts and provide all the necessary hardware and software.