Visa Paying Merchants Thousands to Stop Accepting Cash
Interesting article in the Wall Street Journal yesterday regarding Visa’s new program which will incentivize merchants to upgrade their payment acceptance technology and stop taking cash as a form of payment.
This isn’t the first we’ve heard of merchants going 100% electronic with regards to payments. Some merchants have done this on their own citing the benefits of not accepting cash, which include time savings, decreased risk of physical theft, and simplifying back-office operations. But, to our recollection, this is the first time a card brand is pushing this kind of campaign directly to the merchants and not through the actual credit card processing companies.
Visa is calling this program the Cashless Challenge. And the program is two-fold: (1) there are still a lot of smaller merchants using outdated and vulnerable payment technologies; and (2) Visa, the leader in card transaction volume, obviously doesn’t make any money from cash transactions. The more merchants they can get to upgrade equipment and move to 100% electronic payment acceptance, the more they will save in costs associated with fraudulent transactions and stolen card data and the more they will make in card volume.
For SMBs this is a unique opportunity to possibly qualify for some pretty decent side revenue. Visa is offering up to $10,000 for some merchants.
What do you think of this program? Think it will work? If you were a merchant, would you stop accepting cash? Let us know in the Comments section.
Source: Wall Street Journal