When it comes to payments, most businesses take a mix of cash and card. But which is best? The truth is that each method of payment comes with its own costs and considerations. Here's how to weigh them up and choose what's right for your business.

The case for cash

Cash has no transaction fees and lands in your till straight away, with no waiting for it to clear. Some customers still prefer to use cash, especially when they're making smaller purchases. To some people, there's something appealing about holding 'real money', seeing it physically passed over for a purchase and being able to count it in your hand. The downside is the admin that cash causes your business. As we mentioned, cash needs counting - but it also needs storing securely and banking, which all take time. There's also a risk of theft with cash kept on the premises, and some staff feel less comfortable handling or carrying cash in case it makes them a target.

The case for card

Card payments are faster to process than cash - that immediate 'beep' feels very satisfying and the transfer of funds is pretty much instant. Card payments are also safer to handle, and give you a clear digital record for every sale. Most customers now expect to be able to pay by card, so not accepting it can cost you business and cause inconvenience to your clients. The trade-off is the processing fees charged on every transaction, plus the cost of a card reader or terminal.

Finding the right balance

Think about your customers and the size of typical transactions:

•        High footfall, low value sales often suit contactless card payments

•        Larger transactions are usually safer and easier to track by card

•        A small cash float still helps if customers ask for it

Are card payment fees worth it?

For most businesses, yes. The fee is usually a small percentage of the sale, and the convenience for customers, plus the reduced cash handling, tends to outweigh the cost.

Is it safe to accept only cash?

It can work for some businesses, but it limits who can pay you and increases the amount of cash you need to store and bank, which carries its own security risk.