CHAPEL HILL, N.C. – In their June issue, FSR Magazine ran an article on “The Cost of Being a ‘Cash-Only’ Restaurant,” warning proprietors of the pitfalls that could ensure from banning plastic forms of payment: “A ‘cash-only’ business model may seem like a guaranteed way to make sure you’re paid for services rendered, and to optimize your cash flow potential — but eliminating the option for customers to use other payment methods, including credit cards, may cost your business far more than you think,” writes the full-service restaurant industry publication.

While portions of the cautionary tale may not apply equally to convenience retailers, FSR makes several points worth taking note of:  

• Cash is no longer king. Regardless of your target audience’s age, data indicates that most consumers want the option to pay with a debit or credit card.
• Your competition takes cards. If you only accept cash and your customers don’t have money in their wallet at the time they want to grab a snack or fill their tank, you’re guaranteed to miss out on the sale. If you don’t accept credit cards, your customers can easily find a retailer that does.
• You limit your own sale value potential. Consumers are more impulsive when using credit cards to pay, compared to cash. FSR cites a Dun & Bradstreet study showing that consumers typically spend at least 12% more when using credit versus cash.
• Your checkout processes are less than ideal. Studies indicate that consumers respond negatively to the visual appearance of a line, regardless of how fast or slow it’s moving. Regardless of how well-staffed your checkout line is, cash payments inherently involve time to give the customer the correct amount of change, and ensure that the change is correct. By contrast, a credit or debit card involves simply tapping or swiping a card — and may not even require that the customer sign for the purchase.