Question

The business you work for is considering going to all cash transactions because the owner feels they are paying too high of a percentage to the credit card companies. Also, the funds do not appear in their operating account until 3 days later. Discuss with the owner the pros and cons of this decision and what would you recommend they do?

Answer 1

pros and cons of going to cash transactions

pros:-

1. istant money in hand , no need to wait till the online payment processed

2.there are no transaction fee with cash like there are with credit cards

3.minimizes book keeping , which means less stress and less paper work

cons:-

1. money in the drawer can be tampering for some employees to steel

2. a safe needs to be on sight or frequent trips to the bank for deposits must be made , which takes time and money]

3. money at your location increase your risk for theft not just from employees but from criminals as well

pros and cons of going to card transactions

pros:-

1. credit and debit card payment are most commenly used transactions today, infact in a servay it is stating that only 27 of the transactions are done in cash , remaining transaction done by card payments only, so card payments increase business revenue

2. accepting credit card or debit card payments is becomes easier then ever , and payment gate ways also becoming more and more secure to make the card payments

3.by encouraging credit card payments payment is secured from bank side ,even through customers does not have funds in his bank account

cons:-

1. accepting cards will charges extra like transactions charges and maintanance charges etc..however govt planning to remove transaction charges on card payments to encourage it

2. finally adding credit and debit card payment options increase the risk of fraude and other security issues

RECOMMENDATION:-

Ultimately, choosing whether or not to accept card payment options is an important decision. In the modern world, customers carry less cash than they used to and rely on credit and debit cards for everyday purchases both big and small. If you want your business to grow and thrive you simply need to add a card payment option