Discounts for Cash Payments: Cummins Allison Explains How Technology Can Supplement Reduction in Credit Card Processing Costs

The growth of electronic payment technology has resulted in a significant backlash for many small and medium-sized retailers as they are hit with costly processing fees. Recently, the Washington Post noted that the fees associated with processing credit card transactions have had an especially damaging effect on the owners of independent shops. The Toronto Star cited data from the Canadian Federation of Independent Businesses that found small enterprises often pay a total of $5 billion to $7 billion in credit card fees annually.

Cummins Allison, the leading innovator and provider of coin, currency and cheque handling solutions, explains how dual-purpose cheque scanners and cash counters are a valuable supplement to any retailer's ongoing initiative to offset processing fees and reduce operational costs.

Incentives for Customers to Pay Cash Can Offset Costs

Due to electronic payment fees, many retailers have decided to offer unique incentives to encourage customers to pay with cash or by cheque. In fact, new legislation that allows businesses to transfer part of the costs associated with credit card processing to consumers has paved the way for a tiered system in which shoppers can enjoy a small discount for sticking to cash.¹

While encouraging customers to avoid making purchases with credit cards, businesses may easily avoid certain fees. With more and more customers incentivized to pay cash, investing in advanced cash counting and cheque processing machines can further reduce costs for small and medium-sized retailers.

Technology Can Lead to Potential Savings

Although incentives can save costly credit card processing fees, the need to devote hours in the back office toward counting money or depositing cheques at the end of the day can quickly eliminate any potential savings - this is where technology can lend a hand in reducing additional operational costs.

Dual-purpose cash counters and cheque scanners can help businesses eliminate many overhead costs as more consumers leave their credit cards at home. These solutions not only boost labour productivity but also contribute to overall savings for the business. With the right tools, store owners can make the most efficient use of their time while still limiting overhead costs.

For more information on how small businesses can benefit from advanced currency, cheque, and coin processing solutions, visit www.cumminsallison.ca.

¹The Washington Post

About Cummins Allison

Cummins Allison is a global leader in developing solutions that quickly and efficiently count, sort and authenticate currency, cheques and coin. Our leadership in technology and product innovation spans more than 125 years. Cummins Allison serves the majority of financial institutions worldwide, as well as leading organizations in retail, gaming, law enforcement and government. Ninety-seven percent of our customers would recommend our products and services. The company holds more than 350 patents and invests double the industry average in R&D. Our world-class sales and service network includes hundreds of local representatives in more than 50 offices in North America, wholly-owned subsidiaries in Canada, the United Kingdom, Germany, France, Ireland and Australia and is represented in more than 70 countries around the world. For more information, visit www.cumminsallison.ca.

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