The Australian government has released a draft proposal to mandate cash acceptance. It is a much watered-down version of its previous statement. The most crucial point is that it does nothing about the big problem of disappearing bank branches and ATMs, which makes it difficult for many who want to use cash.
The good news is that for most business owners, this new rule won't change much and accepting cash will be a business decision for you, not a legal one.
Do You Have to Accept Cash?
For most retailers, the simple answer is no.
The new rule applies only to specific businesses, as the paper mainly covers supermarkets and many petrol stations. If you own a pet shop, a newsagency, a chemist's, or another type of small store, you are excluded as the rule only affects businesses that make more than $10 million in a year. Most independent shops fall well below this line.
If you run a local shop, you can decide for yourself whether to accept cash or go cashless.
An Exception for Franchise Stores
There is one important exception. If your shop is part of a big chain, like a 7-Eleven or a branded petrol station, you might have to accept cash. This is because the $10 million rule applies to the whole organisation, not just to a shop.
Deciding What's Right for Your Business Since the law doesn't force you to accept cash, you can choose what benefits your business. Consider these points.
Reasons to Keep Taking Cash
Retain all customers: Some prefer cash, especially older shoppers or those on tight budgets. While most now use cards, about 1.5 million Australians still rely on cash for daily shopping. Accepting cash helps you keep these customers.
Stand out from competitors
The big supermarkets will still be taking cash. This means people wanting to pay in cash will be forced away if you do not accept it.
Credit and debit card fees
These are high and likely to go up soon.
Reasons to Go Cashless
Save time
Handling cash takes time
Cost
It does cost to accept.
The future is digital.
It's getting harder to find banks and ATMs. As this trend continues, as a society, we are losing the ability to accept cash. Going cashless now can help prepare your business for the future.
Your Choice to Make
Choose payment methods that suit you. Consider your customer types and cash handling costs. Whether using cash or digital, the choice is yours.
Written by:
Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.
