Most of your customers prefer paying by card, but does it make sense for your restaurant to accept card payments only? There are several advantages to moving your restaurant to a cashless system. It can save you time, increase your restaurant’s security and improve the accuracy of your accounting. Plus, according to the “2016 U.S. Consumer Payment Study,” conducted by payment processing giant TSYS, 40 percent of consumers prefer to pay using credit cards, and 35 percent prefer to use their debit cards, leaving only 11 percent who prefer to pay with cash.
However, you may see a higher percentage of your customers using cash: Per the same study, consumers value having a choice of payment options, and the method they use largely depends on the type of purchase they’re making. Restaurants, particularly coffee shops and fast food, receive more cash payments, as 28 to 33 percent of consumers prefer to use cash when they visit these establishments.
Visa has its eye on this segment of consumers. It’s encouraging small restaurant businesses to embrace card-only transactions by hosting a Cashless Challenge, with $10,000 prizes to be awarded to up to 50 small restaurant businesses that submit short videos describing how going cashless could help their businesses thrive (entries were due Oct. 31, 2017).
Aside from Visa’s contest, now is a good time to evaluate whether the cashless movement makes sense for your restaurant. Consider the following points.
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Although the advantages to a cashless system are attractive, you want to carefully consider the other side of the argument before deciding that card-only payment is right for your restaurant.
Even though more customers choose credit and debit cards as their preferred payment method, whether moving your restaurant to a cashless system is a good idea or not depends largely on the preferences of you and your customers. While some restaurant owners may enjoy the convenience of a cashless system, others may decide that catering to their customers’ preference to use cash outweighs the cashless benefits. Some restaurant owners may even choose to pursue a cash-only business model. For many restaurants and their customers, it’s still too early to declare cash obsolete.