WASHINGTON, Nov. 20, 2014 /PRNewswire/ -- A new study which analyses the point-of-sale practices of small retailers demonstrates that retailers that adopt a cash-only strategy make fewer sales, of smaller dollar-value, yet still incur costs associated with handling cash. The study, Retail Payment Systems: Relative Merits of Cash and Payment Cards, was released today by Economists Incorporated, a premier economic consulting firm.
The study weighs the costs and benefits for merchants of different payment systems and in doing so explodes the myth that merchants do not incur costs or any significant disadvantage from rejecting electronic payments and operating on a cash-only basis. The study is the latest contribution to a mounting body of publically available work which quantifies and demonstrates the extraordinary value of payment card acceptance to merchants of all kinds.
The paper, which details case studies of five merchants – a fast-food restaurant, a full-service restaurant, a gas station, a convenience store, and a small, independent grocery store – and the experiences of a florist who added the use of credit cards, reveals that:
- Merchants can expect significant increases in sales when they add payment cards to their mix of accepted forms of payment;
- The difference in merchant costs associated with credit card transactions and cash transactions is relatively small;
- The additional value that merchants derive from payment card acceptance is large relative to any associated costs.
The full study and more information is available at www.ei.com
About Economists Incorporated:
Economists Incorporated is a premier economic consulting firm in the fields of law and economics, public policy and business strategy. With offices in Washington D.C. and San Francisco, Economists Incorporated offers expert consulting and testifying services in the context of litigation, arbitration, proposed mergers and acquisitions, regulatory hearings and business planning. Clients include legal counsel, businesses, trade associations, government agencies, and multi-national organizations. www.ei.com
SOURCE Economists Incorporated