Should You Take Your Food Truck Business Cash-Free?

If you operate a food truck or mobile restaurant, you may constantly be on the lookout for ways to make your business even more streamlined and productive. One such method may involve changing the way you accept payment by going "cash-free" and accepting only credit or debit cards with a point-of-sale (POS) swiping tool attached to your smartphone. Read on to learn more about some of the benefits going cash-free can offer your mobile business.

Why might it be a good idea for your business to go cash-free? 

In today's increasingly computerized society, payment with plastic has begun to dwarf payment by cash or check. Not only does payment by credit or debit card provide instant approval (or denial) of funds, making it a safer transaction from the vendor's perspective than accepting a potentially bad check, but taking your business cash-free can significantly reduce your risk of being robbed.   

If you find that your food truck frequently has long lines causing some customers to wander off to a quicker source of food, changing the way you accept payment could help serve your customers more quickly. In order to pay via credit or debit card, your customers will merely need to swipe their cards through the POS reader and sign on the screen that pops up, a process that usually takes just a few seconds. Putting the payment process in the hands of your customers will allow your cashier to bag your customers' food rather than fumbling with (unsanitary) money and making change.

Going cash-free may also help you boost your profits. Studies have shown that many consumers tend to spend more when using a credit or debit card instead of cash; by increasing each transaction just a dollar or two, you'll be able to more than cover any fees associated with the use of a POS system while increasing profit. 

What type of POS systems can allow your food truck to stop accepting cash? 

A number of vendors provide POS swiping tools that can be used on your existing smartphone or tablet. For many such tools, you'll pay only a per-use "swipe fee" of a few percent of the total transaction. Alternatively, you may be able to rent the tool from the POS company for a set monthly fee. Depending on your truck's sales volume and the amount spent by each customer, paying a flat monthly fee rather than a swipe fee could be a better investment. Contact a company like Midwest Payment Processing for more information.