top of page

Interested in Running a Cash-Only Business? Here are the Pros and Cons

It’s a growing trend for businesses to operate their financial matters digitally, but a cash-only business model can be quite lucrative. In many industries, such as laundromats, street and market vendors, lawn service providers, cannabis dispensaries and really anywhere an ATM is present - Cash is King.

Let's jump right in and find out why...


Lower Costs

Perhaps the biggest benefit to running a cash-only businesses is lower operating costs. Not accepting cards, can save a business up to four percent in card processing fees. While four percent may not seem like much, a $1 sale using a card would mean the business only receives 60 cents. Fees can add up quickly and for businesses with tight margins this could mean the difference between making a profit or not.

Simplicity and Ease of Use

Running a cash-only business is simple and straightforward. No fancy technology or equipment is needed to process cash transactions. All that’s need is a cash box and some change. Plus, by accepting cash you know exactly how much money you're receiving, and have access to that money right away.

Reduced Risk of Fraud

While the risk of counterfeit bills is a concern for every business, a little training will help ensure all notes taken in are real. But a business that accepts cash transactions has a lower risk of fraud. There is no need to worry about chargebacks or disputes that come with accepting electronic payments.

In addition, cash transactions can be more secure than electronic transactions, if proper precautions such as safes are used. Cash can’t be hacked, and there is no need to worry about data breaches or cybercrime that businesses that accept cards have to deal with.


Limited Payment Options

Some customers prefer to pay with a card, and if a business doesn’t accept electronic payments it could turn away potential customers. This is especially true for businesses that sell high-ticket items, as customers may not carry enough cash to cover the purchase. In a 2017 survey, 38 percent of participants cited carrying cash as an inconvenience. If an ATM is not readily available, cash can be time-consuming and bothersome to acquire.

Increased Security Risks

Because cash is physical, it can be lost, stolen, miscounted or even counterfeit. This means extra precautions need to be taken such as using a safe or making frequent bank deposits. However, by having an ATM on-site and loading it with cash taken in, a business can reduce the amount of money keep in the register.

Difficulty with Record-Keeping

Another potential downside of cash transactions is that they can be more difficult to track and record than electronic transactions. Detailed records will need to be kept, which can be time consuming.

Operating a cash-only business has its advantages and disadvantages. However, the benefits far outweigh the negatives, especially for businesses that primarily offer products that are $25 or less. Receiving immediate payment, simplified bookkeeping and not having to pay fees to accept cards can be a huge benefit for small businesses with tight profit margins.

But whether you choose to only accept cash, take both card and cash payments or require a minimum purchase to use a card, having an ATM on-site is a must have for any business. Not only will it give your customers easy access to basic financial services such as account balance inquiries and balance transfers, and easy access to cash, filling the machine with the cash you take it can greatly increase security.

Find Out if your Business Qualifies for a Free, Turn-Key ATM.

Contact Heath ATM Today!

Give us a call at (800) 849-3029 or email us today!


bottom of page