In this day and age of credit and debit cards, fewer people are using cash on a daily basis for their transactions. In fact, many people do not regularly carry cash on their person at all. Because of this new phenomenon, it is extremely advantageous for businesses to make their transactions accessible through debit and credit cards. If you are considering moving to a cashless vending system, keep these helpful tips in mind as you make the transition.
1. It is important to make sure that the prices of the items that you are selling in the vending machine reflect the additional transaction cost of going to a cashless system. You will want to confirm the individual transaction fee and ensure that regardless of what item is selected for purchase from the vending machine, the price includes that fee. While this may involve raising your prices, it is important to not lose profit by not accounting for this additional cost.
2. Choose a location for your cashless vending machine where there is adequate signal strength for the cashless reader. If the signal strength is too weak in an area without local area networking, then the transactions will likely fail and customers will be frustrated.
3. When selecting a location for your cashless vending machine, find a sport where there is enough foot traffic to justify the investment. A transient location is usually best for this purpose.
4. Understand the chargeback process and incorporate this additional cost into your budget or item prices. When using credit cards, there is always a potential for chargebacks from the customer. This can be the result of actual fraud or friendly fraud on the part of the customer. Make sure you know what these prices are for each financial institution that you will partner with and be ready to anticipate the total cost of the charges in your business model.
5. If you own more than one cashless vending machine, it is best to cluster the location of the machines to attract the most attention. It is better for the cashless vending machine to be surrounded by other cashless options for having the most potential customers take advantage of the unique convenience of not having to use cash to make a purchase.
6. Because you will be operating with credit and debit cards, you need to make sure that there are sufficient anti-fraud or theft measures in effect so that your customers are not victims of identity theft. Consider installing a verification system for each purchase, such as requiring customers to enter their five-digit zip code in order to complete the transaction. An ounce of prevention is worth a pound of cure in this scenario.