Should we have a surcharge for cash?

In my personal life, I don’t like cash.  It’s annoying to carry, coins are heavy, and you can never find an ATM to withdraw more money when you really need it.  My wallet consists of a small card holder where I carry a few business cards, my driver’s license and a couple EFTPOS/credit cards.  That’s it.  I’ve found it’s very rare that I ever go to buy something and the business only accepts cash.

As a business, thinking that only accepting cash saves you the expense of an EFTPOS machine and the associated charges isn’t quite true. Handling cash in a business is an expense, and comes with its own set of challenges.

There’s making sure you have enough change (and if not, working out what you need and regularly picking up more from the bank), regularly clearing the till at the end of the day, and banking which needs be taken care of.  At any stage of this process, you are open to theft.

Doing everything by EFTPOS removes this.  No change, no cashing up the till at the end of the day and no going to the bank.  Theft is also minimal as it’s hard to do.

This had me thinking – could we, as a café, instead of a surcharge for credit cards, have a surcharge for accepting cash?  I would really need some figures to back this up.

Luckily, since we started the café, I’ve been importing the statements we get from Paymark (the processing network) into a database for my own records.  This is what the data looks like:

With this data, and our set of accounts out of Xero, I can get an idea of what the percent of electronic transactions vs cash is: 6% cash, 94% electronic.

To break this down further, what’s the most popular way to pay?

(unfortunately, we don’t get a break-down of contactless payments)

At a small 6% we could implement a cash surcharge.  What do you think?