7 Reasons Why Cash is Better Than Card

Do you know why cash is better than card? If you are in the ATM business, then you probably have your reasons, the number one reason being revenue…. But with the advancements in electronic payment technology, money transfer apps, and cryptocurrency, some might start to wonder whether cash will become obsolete.

We’re here to tell you that cash is here to stay. Not only are there a number of situations and scenarios where cash is the only possible form of payment, there are also clear benefits of using cash instead of a debit or credit card.

Trust us. Cash is king. Here are 7 reasons why cash is better than card.

1. Minimize Debt

As you probably already know, credit is a quick way to accumulate debt. It’s the very nature of credit: buy now, pay later. Charging more than what you have or what you make results in debt. And it’s a very easy habit to develop. When you pay with cash, however, you own rather than owe. 

Paying with cash has also been proven to help with budgeting. Budgeting, in turn, prevents debt. Budgeting ensures that you only spend what is available. Therefore, budgeting is made easier with cash payments. You see and feel the money leave your pocket. When it’s gone, it’s gone. 

A budget is much harder to maintain when the debit or charge is so far removed. Ever heard the phrase, “Out of sight, out of mind”? Unfortunately, for many people that’s what happens when they pay with their cards. And this is what makes budgeting so much more difficult.

2. Avoid Interest

Then, as though charging more than what you have or can afford wasn’t enough to burst your budget, you accrue interest on your card payments. In this way, you end up paying more for your purchases when you pay with a card than if you had paid with cash. 

Of course, you don’t accrue interest if you pay the balance each month. But many people occasionally miss payments. Not only do you end up paying more in interest and late fees, but your credit score could be at risk, too. With more cash payments, these problems become less of a concern.

3. Avoid Overdraft Fees

While it might seem clear or even obvious why cash is better than card when it comes to credit, it does have its place above debit as well. First of all, the same “Out of sight, out of mind” maxim applies. It is much harder to stick to a budget when you don’t actually see or feel the funds leave your wallet. 

Second, your debit payments don’t accrue interest, but have you ever miscalculated your balance and been charged an overdraft fee? There’s $20 you’ll never see again…. Alternatively, depending on your bank, you can only get cash if your available balance will support it. 

Once you have the cash, you can spend it until it’s gone without suffering overdraft penalties! You always know how much you have at any given time without the confusion of “pending” transactions, “available” balance, or delayed processing.

Unless you want to keep a register, like we did when checks were more commonplace (Does anyone miss checkbooks?), it might be best to use cash as much as possible rather than rely on debit transactions. Especially if you are trying to maintain a strict budget and decrease your debt.

4. Avoid Transaction Fees

Did you know that it costs money to process card transactions? Yes, there are network fees charged by your card company to process, or allow, your transactions. 

Many businesses adjust the cost of their goods and services to account for the amount these fees will cost them to process card payments. But there are some businesses (typically small businesses, pop-up shops, freelancers, etc.) that pass this fee on to the consumer. And some restaurants pass this cost onto their servers and deduct card transaction fees from their tips!

Maybe a 3% payment transaction fee doesn’t discourage you from the convenience of making an electronic payment rather than a cash payment. But think of it this way:

You use a card to pay for a $50 restaurant tab. That $50 is now worth only $48.50 when you subtract the transaction fee. Whereas if you pay for your meal with a $50 bill, that $50 bill retains its value whether it’s used for groceries, a haircut, or a movie by the next person.

So after, say, thirty card transactions, that $50 will end up being only $5. The other $45 becomes property of the bank after all of the digital transaction fees are paid….  Is that where you want your money to go? 

5. Spend Less

Psychologically, we spend less when we use cash instead of card. It doesn’t “hurt” as much when we spend without our means if we don’t immediately experience the effects. In other words, the option and/or ability to postpone the consequences of our spending money we don’t currently have results in overspending. 

For this same reason, you are more likely to encounter deals when you are able to pay in cash. Individuals, small businesses, and, well, basically anyone, prefer cash payments to electronic payments. 

First of all, they don’t have to worry about missed payments. Sometimes it’s more important to a seller that they get full payment immediately than have to deal with defaulted or delayed payments. 

Secondly, when someone receives a cash payment, again, they benefit from the entire value of the banknote. The alternative is either having to deduct a percent of a card payment or risk missed payments. Therefore, since most people would rather have the security of full payment up front, they are more likely to offer you a sale for less than the ticket price if you have cash.

Often the “ticket price” accounts for the cost of waiting for a fulfilled payment and any associated fees. So when you pay with cash, you not only avoid paying interest, but you might also benefit from paying less up front due to the convenience afforded to the seller. 

6. Decrease Risk of Identity Theft

Have you ever received an email saying your information was compromised in a data breach? When you swipe your card, credit or debit, you put yourself at risk of being robbed. 

When you swipe your card or use it online, your card data can become compromised if there is a lapse in security. This risk applies to money transfer apps tied to your accounts as well. 

On the other hand, there is no paper trail with cash. So when you make cash payments, your personal information remains secure no matter what.

7. Pay for Almost Anything

Finally, cash is universal. You tip your server, bartender, barber, or manicurist in cash. You give a dollar or two to the beggar on the corner. Your kids get their allowance in cash. You pay your young neighbor in cash to babysit. The local farmer’s market or pop-up exchanges goods for cash. 

Most cannabis dispensaries are cash only still, too. And with the recent change in money transfer app taxable income reporting, you might start to find even more freelancers, independent contractors, and other self-employed individuals encouraging cash payments. 

Cash is almost always accepted. You will find more “Cash Only” signs than you will “Card Only” signs. Since cash retains its value while the bank shares in electronic transactions, some businesses just don’t want to pay those transaction fees. And what happens when “the system is down”? You pay with good old fashioned cash!

Most importantly, everyone has access to cash. Minors, low-income, and other unbanked individuals would find it quite difficult to fit into a cashless society. Cash is non-discriminatory and is absolutely necessary in today’s world.

Why Cash is Better Than Card

Now, we know that alternative payment methods definitely have their place. But we also know that because of the benefits cash offers, it won’t become obsolete anytime soon. 

Cash is traditional and familiar. It’s reliable. It’s universal. And it’s better than plastic.

Now that you know why cash is better than card, are you convinced that an ATM business is a solid investment? Contact us to get started today!

9 New Year Business Quotes for ATM Business Owners

New Year business quotes function much the same way as any other motivational quote you might have seen in your lifetime. The difference is that these quotes can be directly applied to business owners.

The beginning of a new year is inherently motivational for most people. It signifies a fresh start, a second chance, and new opportunities. This applies to us personally as well as professionally. As a business owner, entrepreneur, or self-starter, do you feel more motivated with the arrival of the new year?

If you need a little more motivation or inspiration, here are 9 New Year business quotes to help you achieve business success this year.

1. “Another day, a whole ‘nother set of possibilities.” -MacGyver

We like this New Year business quote because it doesn’t just apply to a new year. You can apply this one to any day. A new year, a new quarter, a new month, a new day…. All signify opportunities to achieve more. 

What are your goals for this year? What are your goals for this month? For today? And those are just the possibilities you’ve listed for yourself. Those don’t even account for the opportunities that will come your way that you might not even expect. Will you take advantage of those opportunities? 

Angus “Mac” MacGyver is famous for his unconventional problem solving skills. Will you be defeated by any problems this year brings, or will you welcome them as possibilities and opportunities? 

2. “Cheers to a new year and another chance for us to get it right.” -Oprah Winfrey

“Cheers” is right! Hopefully you welcome the new year rather than dread it. You should celebrate an end to the previous year, a year surely filled with mistakes that you have since learned from. Take comfort in knowing that this year offers you a fresh start, a clean slate, a chance to put into action everything that you learned from last year.

Although it may seem that Oprah gets everything right all of the time, that is far from the case. And if she needs another chance to get it right, cut yourself some slack and try, try again.

3. “There are far better things ahead than any we leave behind.” -C.S. Lewis

C.S. Lewis is a writer known for The Lion, the Witch, and the Wardrobe and The Chronicles of Narnia. As a fiction writer, he knew a thing or two about possibilities. You, too, are a writer. Although Lewis’s famous works contain fantastical elements, you have the chance to write your own story. 

What does the new year hold for you? What are you manifesting or working toward? No matter how successful (or disappointing) last year was, you now have the chance to make this year even better. The pen is in your hand. 

4. “A person can succeed at almost anything for which they have unlimited enthusiasm.” -Charles M. Schwab

Sure, easy for Charles M. Schwab to say, a man who accumulated a fortune of around $200,000,000 in his lifetime. Nonetheless, there is truth to what he says. Everyone measures success differently. Success looks different for each individual and for each business. However, if you love what you do, find joy in your work, and are genuinely enthusiastic, there is no doubt that success will follow.

5. “Work smarter not harder.” -Allen F. Morgenstern

We know, we know. You’ve heard this one before. But did you know that it dates back to the 1930s? Allen F. Morgenstern, an engineer, coined the term during a work simplification program with the intent of increasing peoples’ ability to produce more with less effort. 

Now, there is some controversy about this particular new year business quote. So allow us to clarify why we’ve included it here:

First of all, it doesn’t mean you should work yourself to the bone. It doesn’t mean you shouldn’t ask for help. It doesn’t mean you should already have all of the answers. Quite the opposite.

Working smarter, not harder, in the context of your ATM business, means you should rely on those who have more experience in the industry. Ask questions. Ask for help. And plan ahead.

Working smarter also means you should prepare for any and all potential threats to your business. By this we mean ATM security. What potential threats, problems, malfunctions can you prevent this year that will save you time and money resolving in the worst case scenario? 

With the appropriate processes and procedures in place this year, you can ensure more revenue with less effort this year. Just like Morgenstern taught us.

6. “Do more than is required of you.” -General George S. Patton

Does anyone really succeed by doing the bare minimum? General George S. Patton didn’t. One of the most famous American military commanders during World War II, General George S. Patton was known as “Old Blood and Guts” and was awarded a Distinguished Service Medal and the Purple Heart.

General George S. Patton went above and beyond his duty and was revered and respected for doing so. This is what is necessary to make a name for yourself. If you’ve “gotten by” in the past, this year, try to do more than is required of you and see if you notice a difference in your business (and your life!).

7. “Creativity is intelligence having fun.” -Albert Einstein

Once you have some experience in the ATM industry under your belt, you can start to get creative. Experiment with your surcharge. Will a lower surcharge bring in more customers and therefore more revenue? Or is your traffic mostly local regulars where a higher surcharge brings you more consistent income?

What about advertising? Is there anything you can do to draw more attention to your ATM machine or business? Are there any extra features you’d like to add to your ATM machine this year to set your business apart from the competition?

Can you get creative with opportunities in the ATM industry? Maybe you want to start selling ATM machines to locations or get into cryptocurrency ATMs

You don’t have to be a genius like Albert Einstein to be successful. Once you have a little more experience, or intelligence, about the ATM industry, you can start to get creative and have a little more fun with your business.

8. “If you want something new, you have to stop doing something old.” -Peter F. Drucker

This New Year business quote from Peter F. Drucker, management consultant, reminds us of another: Insanity is doing the same thing over and over again and expecting different results. Do you want to make more revenue? Do you want to scale your business? Are you unhappy in your current position? Would you prefer to work out of a different location?

If there is any aspect of your business that makes you unhappy or uncomfortable, it’s time to make a change. Whatever it is you are doing now that isn’t working needs to stop. 

“Something new” could refer to something material: If you want a new car, you might have to make more revenue. Okay, so what changes could you make to your business that might generate more income?

Or, “something new” could refer to a state: If you want to feel less stressed in your business, you might need to consider a different business model. Is there an aspect of your business you’d like to focus more on? Are there parts you could outsource, maybe parts you dread or don’t really have time for? 

Every ATM business looks different. There is no one way to do it. What do you want yours to look like this year?

9. “A business absolutely devoted to service will have only one worry about profits: they will be embarrassingly large.” -Henry Ford

Henry Ford knew a thing or two about service and profits. His service made him a household name, and he would have been worth about $200 billion today.

Now, your ATM business operates on a much smaller scale than Ford Motor Company, but what is one surefire way to ensure you keep generating profit? Focus your energy and attention on the customer. 

Great ATM customer service goes a long way. Customers are loyal to businesses that listen to them and know them. What do the customers in your area need? What surcharge is convenient for them? Are they able to contact you? How quickly do you address machine issues?

You don’t have a business if you don’t have operating machines. And you don’t have income if you don’t have customers. So focus on them this year.

What Can New Year Business Quotes Do For You?

If you struggle to get motivated or stay motivated, these quotes might just help. Take it from the experts, from business owners, entrepreneurs, and self-starters just like you. They’ve been where you are, they know what it takes. And so do we.If you need help getting started, scaling your business, or exploring other opportunities in the ATM industry, don’t hesitate to contact us here at ATMDepot.com. We can help you reach your business goals this year.