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Are We Headed Towards a Cashless World?

Cashless society signs

Since PayPal launched in 1999, we have seen a dramatic transformation of the payment landscape. Digital payment technology has continued to advance with bitcoin, mobile wallets, and pay by app options.  Digital payments are being adopted everywhere, from your local grocery store to the corner coffee shop. As of 2019, global digital payment volume reached a staggering $4.1 trillion. It is clear that consumers are growing increasingly comfortable with these technologies.

While the movements to digital payment options was already evident, the pandemic saw a shift in digital over cash usage. Cash is made of a fibrous material, and a notorious germ spreader. Thanks to the fear of Covid-19, cashless innovations have only continued to rise. This has left many speculating that we may see a future free of all forms of cash. While studies are showing that we may be headed towards a “less cash” society, completely cashless is unlikely.

The Problem With Going Cashless

Going Cashless is Discriminatory

During the height of the pandemic, some businesses chose to eliminate the use of cash as payment to help avoid the spread of the Covid-19 virus. This was met with mixed reactions. While some accepted and understood these business’ decisions, others felt this was discriminatory.

In a 2019 report by the FDIC it showed that 5.4 percent (7.1 million) households were unbanked. It also showed that the majority of those unbanked households are homeless, minorities, and low income. A move to cashless would result in this 5.4 percent being excluded from operating in society, making the already vulnerable even more vulnerable.

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Privacy

The problem with digital, is that everything can be tracked. Consumers already must deal with retailers tracking their every move. There is a constant fear of having their data sold, hacked, and even stolen. In recent years, there been a growing awareness of online tracking and a push for digital privacy regulations. There are now protections in place to govern what websites and online retailers do with consumer data. So, what about in-store transactions? Consumers should have the right to privacy when it comes to the purchases they make. Paying with cash allows for purchasing goods and services, while keeping transactions private.

Is Cashless legal?

There are no laws that exist prohibiting businesses from not accepting cash as a form of payment. However, some lawmakers are taking action to keep businesses from discriminating against those who wish to pay with cash. The cities of New York, Philadelphia, and San Francisco, as well as the States of New Jersey, Rhode Island, and Massachusetts have laws in place to protect those unbanked customers who rely on cash. Many more lawmakers are proposing bills that would require businesses to accept cash.

Cost

Cashless payments may be convenient for consumers, but they are expensive for businesses. If you are a business owner that accepts cashless payments, you are already familiar with the fees. In 2019, card issuers made $80billion in transaction fees. In addition, online payment services such as Square and PayPal, also take a percentage of sales for the privilege of using their services. For a small business, all these fees add up quickly.

FEES on calculator - Merchant processing fees

Cash is Still King

There is no doubt that we will continue to see growth and advancements in the digital payment landscape. But there are still real needs, and benefits, for paying with cash. Here at Edge One, we are experienced and knowledgeable when it comes to cash handling. We carry a wide range of products designed to keep your cash handling processes efficient, safe, and security. For more information, check out our Cash Handling Products or Contact Us at 800-423-3343(EDGE)

Cash Management for Cannabis

cannabis leaf on a pile of cash - cash management for cannabis

The cannabis market has seen tremendous growth over the last several years. Medical marijuana is now legal in 36 states, with 18 legalizing recreational use. Cannabis sales in the United States is projected to reach $92 billion by the end of 2021. This is an increase of more than 30% over the past year. Experts are projecting that by 2025 the cannabis industry should see upwards of $160 billion. And, with the growing acceptance of the idea of legalizing marijuana, we should see these numbers continue to rise.

Despite a growing acceptance and an increasing number of states allowing some sort of legal sales of cannabis, it is still considered a “schedule 1” substance by the DEA. This means it is still illegal at a federal level. Banks under the FDIC are bound by federal law. Under strict interpretation of this law, banks are unable to offer cannabis business even basic banking services. This includes loans, credit, and even checking accounts. Accepting, transporting, and even storing money earned from cannabis becomes complicated. Until federal laws change, cannabis businesses are in a tough spot when it comes to cash management.

The Cannabis Cash Management Challenge

Without access to services such as online payments and credit card processing, cannabis businesses have no choice but to deal in large amounts of cash. Managing the cash necessary for daily business is not only a challenge, but it can be dangerous. It creates risk factors such as employee theft, accounting errors, and robbery. Cannabis retailers need a safe way to count, transport, and store their cash.

Easy Access to Cash

The cash challenge isn’t just limited to you and your business. It applies to customers as well. Not everyone carries cash in their wallet. Having an on-site ATM allows your customers to easily withdraw cash and purchase the products they need. Easy access to cash can provide revenue for your business through increased sales and ATM surcharges. Edge One has retail ATMs that can provide your customers on-site access to cash.

Cannabis ATM
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Safe and Efficient Cash Handling Solutions

When it comes to receiving cash, the risks are many. The money must be counted, moved, and stored. The more cash is handled, the more the risks increase. The use of cash automation equipment can help you reduce these risks while increasing efficiency. Edge One sells an assortment of cash automation products that ease the handling of cash and coin.  With cash automation, you can quickly and accurately count, store, and dispense the cash needed for daily operations. And, by reducing the number of hands touching and counting cash, you reduce the risks of accounting errors and employee theft.

Safe Cash Management for your Business

If you run a cannabis business and are struggling with the management of your cash, we can help. Our cash automation experts can help you determine the solution to fit your needs and budget. We can handle it all, from sales and installation to service and support. To find out more, Contact Us at 800-423-3343(EDGE)

Get Rid of High Credit Card Processing Fees

In today’s world, it is essential for businesses to offer their customers the ability to pay by credit card. But unfortunately, credit card processing comes with fees. For every sale made, Visa, MasterCard, and other credit card platforms take their cut. And these fees are increasing. In the past 10 years, fees collected by Visa and Mastercard have more than doubled. For a small business operating with thin margins, these fees can be taxing. Some businesses have been forced to stop accepting credit cards, while others have tried offsetting these costs by raising prices to recoup these fees. What if you could virtually eliminate these costs? With the cash discount program from Edge One, you can do just that.

Help Your Revenue Grow

Credit card fees may not seem like much at first glance, but they add up. Fortunately, there is a way to reduce credit card processing fees. Business owners can offset credit card processing fees while collecting more sales revenue through a cash discount program. These programs allow businesses to offer incentives to customers who pay with cash rather than using a credit card. Those who choose to pay with card pay a specified amount, with the processing fees built into the cost of the product. By forwarding fees to the customer, you can maintain product pricing.  Businesses participating in the cash discount from Edge One see an average savings of $12k annually in merchant processing fees.

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Will cash discounting upset my customer?

Merchants have been reluctant to adopt a cash discount program because they are afraid of upsetting their customers. There is little need to worry.  Your customers are not being penalized for using their cards, but rather rewarded for paying cash. Studies have shown that for most consumers, this is not an issue. In contrast, these studies found that consumers are 11% more likely to switch from their preferred payment method to cash when a cash discount is offered. There are many factors that play into a customer’s choice in payment method. They may not have cash on hand or may prefer to use their credit card to receive associated rewards. When polled, very few consumers cited surcharges as a reason for deviating from credit cards.

Edge One provides detailed signage at the front door, time of purchase, and on the receipt. This assures that the customer is aware of the fee prior to making the purchase, giving them time to decide whether to pay with cash or with card. Our customized terminals automatically add the additional percentage in, so there is no extra work or math for your employees.  It’s that easy.

Find out more about Edge One’s Cash Discount Program

We can provide you with a free analysis that shows your current program and how it stacks up against the Cash Discount Program, revealing your savings potential. Our program is risk free. If you decide this isn’t for you, you can return to your original program. Contact Us at 800-423-3343(EDGE) and the team at Edge One will help you choose the program that is best for your business.