The beyond decades of credit score card processing growth had been because it made it less complicated and faster for us to purchase normal objects. Going lower back to cash entirely disregards this price proposition, each for us and the corporations we save at.

In a recent March 16th Washington Post article flat rate credit card processing with the aid of Michelle Singletary it changed into suggested that consumers respond to the Durbin Amendment in the Dodd-Frank Restoring American Financial Stability Act by “What if we just went back to the use of coins? Better yet, permit’s all start to negotiate greater for a lower fee on our purchases if we pay in coins.”

On the floor this makes ideal experience. Those terrible banks won’t be charging a penny for credit score card processing interchange, the swipe fee on a merchant account. So because the service provider won’t pay their service provider account offerings expenses – voila, we the consumer can negotiate a lower price and attain the “benefit!” Regretfully, not anything might be similarly from the reality. The beyond decades of credit card processing boom have been because it made it simpler and quicker for us to buy everyday objects. Going back to coins completely disregards this value proposition, both for us and the agencies we save at.

Just think of our challenge today to attain the cash. How is that cash going to leap into our pockets? Certainly we will go right into a department, stand in line, and get cash from our money owed. Of course that’s a time ingesting and irritating undertaking, specially if God forbid, we take out a whole lot of cash and have to complete the authorities paperwork due to the fact you recognize, we are nonetheless within the center of a fruitless 50-yr struggle on capsules. So no problem, I’ll simply use the cash machine. And I can, for small amounts, but normally with strains. And I nonetheless need to power to get to 1. God forbid if I use a convenient Out Of Network ATM Cash Machine! Then poof, on common I’ve simply spent approximately $7 to $8 to get my cash! It’s now not the favored outcome to pay greater. And what approximately my non-public safety problem? Won’t I be greater uncovered wearing larger amounts of coins? So I simply might not deliver a large amount, proper? Wrong! I’m no longer going to just accept NOT being capable of buy some thing because I do not have sufficient coins on me.

Then there’s the assignment to SPEND the coins. How usually have you been at a store in which that they had posted NO ACCEPTANCE of hundred dollar payments, or maybe fifty dollar bills? I even have and I’ve complained about it each time. But even if those payments are everyday, it routinely takes me longer to pay with coins, and receive change in cash, then swiping my playing cards. And I always notice how the line behind me grows longer once I’m fiddling although my wallet to get the correct quantity of alternate to pay the clerk, much like it does if I ever sit there on the checkout seeking to write a check.

In a examine done years in the past with the aid of Ipsos Insight and Peppercoin, they decided that our desire to apply credit card processing for small payments became developing and becoming a greater common approach of paying, in particular for low-priced items and offerings. Not less. And simplest seven percentage of their survey respondents who might now not use credit score card processing for small payments observed it easier, or preferred to apply cash, in preference to processing a debit or credit card thru a credit score card machine. Ninety three percent preferred the faster, simpler debit and credit card processing technique.

But enough approximately you and I, what about all the merchant account “savings” the groups will gain with the aid of no longer paying for the credit score card processing prices? True enough, if we pay with cash instead of a card, no merchant account carrier expenses will be assessed. But do not ever think the service provider is getting a “unfastened journey” with the aid of taking coins for bills in place of processing payments with a credit score card system! The number one source of commercial enterprise losses has always been because of employee robbery, over 50%. Cash is without problems stolen in lots of exclusive approaches, credit card processing revenue is not.

And what happens to a commercial enterprise’s general daily income when the line slows up? I do not know about you, but I routinely walk far from a shop if there’s a large line. Fewer income imply lower overall profits for me to “negotiate” over. And If I don’t have sufficient cash on me, I cannot even purchase the things that I need to buy. Certainly that will LOWER a commercial enterprise’s profits, now not growth them. It is properly confirmed that having credit card processing increases the common length of a buy, as compared to cash most effective, due to this very factor.

But it would not end there for the enterprise. Every day the enterprise has to close out its till. That method counting the money, listing the tests and credit playing cards processed, and writing up a deposit slip. With a service provider account, the credit playing cards processed are totaled in a batch routinely thru the credit score card device, and can be indexed at the deposit in some seconds. Counting cash, in particular if it doesn’t upload up the first time, takes much, plenty longer, and time certainly is cash. And the cost of taking cash would not forestall there. As the quantity of coins on hand grows, so does the safety threat for anyone, often instances with deadly effects. Which then raises the problems of enforcing safety features which include drop safes, comfortable enclosures, guards and surveillance structures, the list of coins associated costs goes on and on.

And the Dodd-Frank Restoring American Financial Stability Act now lets in groups to decline accepting credit score and debit cards for purchase amounts of their selecting, below $10.00. So now a business can stop losing money by means of taking a debit card to pay for a percent of gum and having all of the profit eaten up via the service provider account services prices.