Information on Merchant Accounts,
Ecommerce and Credit Card Processing

May 8th, 2023 by J B

Thinking about going completely cashless?

Filed in: Merchant Accounts |

Going cashless has become a popular trend in recent years, with more and more businesses adopting digital payment systems. While cashless payments offer several benefits, such as convenience and increased security, they also come with some drawbacks that small businesses should be aware of before making the switch. In this article, we’ll explore the pros and cons of cashless payments for small businesses.

Pros of Cashless Payments for Small Businesses

1.            Convenience: Cashless payments eliminate the need for customers to carry cash, making transactions faster and more convenient. This is especially true for businesses that offer online or mobile payments, as customers can make purchases from anywhere at any time.

2.            Increased Security: Cashless payments reduce the risk of theft and fraud. Digital payments are encrypted and secure, and many payment processors offer fraud detection and prevention tools to help businesses protect against fraudulent transactions.

3.            Better Record Keeping: Cashless payments make it easier for businesses to keep track of transactions and manage their finances. Digital payment systems automatically record transactions and generate reports, making it easier to reconcile accounts and prepare financial statements.

4.            Improved Customer Experience: Cashless payments offer a more streamlined checkout process, reducing wait times and improving the overall customer experience. This can lead to increased customer satisfaction and loyalty.

Cons of Cashless Payments for Small Businesses

1.            Cost: Cashless payment systems often come with fees and transaction charges that can add up quickly. Small businesses with low transaction volumes may find it difficult to justify the cost of implementing a cashless payment system.

2.            Exclusion: Cashless payments can exclude customers who don’t have access to digital payment methods, such as credit or debit cards. This can be a problem for small businesses that serve low-income communities or elderly populations.

3.            Technical Issues: Cashless payment systems rely on technology, which can be prone to glitches and outages. If a payment system goes down, it can disrupt business operations and lead to lost sales.

4.            Cybersecurity Risks: Cashless payments can be vulnerable to cybersecurity threats, such as hacking and data breaches. Small businesses that handle sensitive customer data must take extra precautions to protect against these risks.


While going completely cashless offers several benefits for small businesses, it also comes with some drawbacks. Before making the switch to being completely cashless, small business owners should carefully consider their customers and how they might react to such a change.  While most of the cons can easily be outweighed, the customer experience should be the focus.  If going completely cashless is something you are thinking about, try posting signs around the business explaining to customers that you are considering it and asking for feedback prior to making any such change.  Take that feedback from customers and use that to help guide your decision.

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