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The cost of cash vs card payments in a business

Often businesses accept cash from customers, but is cash really worth the hassle? While cash may seem to be quick and easy, there are difficulties with cash that each business needs to weigh up. Here are 6 things to consider when you next accept cash.

1. Cash is a security risk

If you collect a lot of cash payments from customers, you have a security risk of this cash being lost or stolen. You also need to keep your cash float secure when you close the store for the day.

2. Keeping change is a hassle

Ever had a bunch of customers in a row give you $50 notes as payment and been unable to give them change? And have you thought about how much of your working capital for the business is tied up in your cash float?


3. Cash is a labour cost

Think about the effort you go to managing physical cash – giving change, going to the bank and queuing up to make the deposit. Either you or someone in your business needs to do it and this means time away from your business.


4. Card payments are easier for bookkeeping

When your customers pay by card and use EFTPOS rather than cash, your bank lists this as a transaction in your business bank account.1 This makes bookkeeping with your accountant much easier at tax time when you need to show your income.


5. You could receive your daily business takings instantly

If you choose a bank who can immediately settle your EFTPOS takings for the day, you can have same day access to the money in your account.

Westpac currently offers Instant Settlement where if you settle your Westpac EFTPOS machine on the same day, this gives merchants with a Westpac branded settlement account immediate access to the day’s takings (excluding Union Pay transactions).2


6. Rising customer expectations

Many customers now don’t carry cash at all and they expect to pay with Near Field Communication (NFC) enabled mobile phones and watches. To accept NFC payments, you will need to switch to an EFTPOS payment solution.


To switch completely to EFTPOS is an important decision for your business and may make taking payment much easier for you.


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Things you should know

1 Westpac’s products and services are subject to terms and conditions and may be subject to fees and charges.

This information does not take into account your personal circumstances and is general. It is an overview only and should not be relied upon. This information including any tax information provided in this article should be used as a guide only. We recommend that you seek independent professional legal and tax advice about your specific circumstances.

2 Westpac instant settlement functionality is not available between 9:30pm and 11:59pm (Sydney time) for all EFTPOS 1 and Presto Smart terminals and is not available between 9:30pm and 11:00pm (Sydney time) for all other terminal types. You can only settle a Westpac issued EFTPOS terminal once within a 24 hour period. Subject to system availability, settlement can take place 7 days a week. Settlement must be to a Westpac business transaction account. Instant settlement functionality is not available on Corporate Online and is only available for Visa, Mastercard and eftpos transactions (excludes UnionPay transactions).