EXPERT COLUMN: Profiting off Low-tech Payments
The recent security breaches at Target and Neiman Marcus stores across the U.S. underline why credit and debit card security is a growing concern for even some of the nation’s largest retailers. Data from a recent Nielson Report found that credit card fraud was an $11 billion global industry in 2013. The risk of losing valuable financial information due to digital security breaches is clearly real for many Americans and may lead consumers to utilize cash and checks for day-to-day purchases.
Consumers Demand Maximum Financial Security
As much as technology has advanced in recent years to move toward more convenient payment methods, credit and debit card security issues continue to be a substantial limiting factor in the widespread use of these tools.
Industry experts often tout the convenience of paying with plastic, as mobile devices, e-commerce portals and in-person cash registers are all able to process cards relatively quickly. However, these transaction methods contain a multitude of financial risks that may lead many consumers to rely more heavily on their paper currency and checkbooks when making purchases.
The Las Cruces Sun-News argued that the financial services industry is currently behind the times when it comes to ensuring maximum security of information stored in banking accounts. The publication said many of the major credit card providers, such as Visa, MasterCard, American Express and Discover have drafted a plan to release smarter and more secure cards by 2015 due to the Target security breach. However, there is no system in place to prevent more account breaches from happening in the meantime.
Bringing Innovation to Low-tech World of Cash and Checks
Shoppers can easily avoid the security risks associated with credit cards by making purchases with cash and checks. However, grocery retailers must be careful not to spend excessive amounts of time counting cash or depositing checks in the back office. Investing in a high-quality cash and check scanner is one of the easiest ways to improve the efficiency of these operations. With these machines, tasks that usually take hours can be completed in a matter of minutes.
Powerful cash and check scanners continue to be an important investment for grocery retailers and many other businesses, as credit cards and electronic payments sometimes prove to be an unsafe transaction method. Not only will businesses be able to boost productivity, but they will also be more prepared for larger changes in consumer behaviors - especially as more Americans consider using cash in lieu of credit cards to avoid security risks.
For more information on how cash and check scanners can help grocery retailers ensure safe cash counting, visit www.cumminsallison.com.