12/02/2013 07:31 GMT | Updated 12/04/2013 06:12 BST

Why Smart Retailers Said Goodbye to Cash

Do you remember those game shows on TV where participants used to win money for different tasks accomplished? Do you also remember how every time they won it, there would be some sort of "ka-ching" sound in the background? Well, some of us don't - why? Because that is ancient history. In the history books, cars were smaller while computers were bigger; movies were shorter while the lines at the banks were longer. But look at all of these now. The point is - things change. It's a "keep up or give up" philosophy that defines us now. That "ka-ching" sound, which was TV's way of telling dumb viewers at home that money had been won, has given way to the almost inaudible sound of swapping. Retailers know this better than anybody else. Here's why -

1. Faster Money equals More Money - Imagine a shop where there's a line of customers at the checkout counter and a person who's really slow at counting money at the head of that line. Chances are that the people behind him will probably pass over this establishment in the future if there's a similar shop around that accepts cards or a door--to-door service that uses card reader apps. People might like spending time at the trials rooms and shopping aisles but no one enjoys the wait at the checkout station. By installing card readers at the checkout, you not only make faster transactions possible, but you also make more money.

2. A Diverse Customer Base equals More Money - Cash payments and transactions have two restrictions - you need to be there to pay/receive it and which also means anonymity is out of question. If you're a merchant and if by using your marketing skills you have managed to attract business from out of your local area of business, imagine the complications that would arise out of the absence of electronic payment procedures. By incorporating credit card payments, you, as a merchant save a lot of trouble for your customers. This sets you apart from someone who doesn't move on with the times and still operates only in cash. Such merchants and retailers also stand to lose customers who prefer anonymity.

3. Customers with more options equal More Money - Customers often walk away from a purchase when they realize that the product or service they have their eyes on is beyond their immediate budget. As retailers and merchants it is in your interest to make them believe that an immediate absence of resources is not necessarily a barrier. If your customer's taste exceeds his immediate reach, make sure you let him know of the credit options that you provide. At the end of the day, it's all about not losing business.

4. Customer with a Limitless wallet means More Money - When you offer credit card options with your transactions, you always have the option of suggesting "throw in" products or services right before finalizing a deal. The range is quite vast - it could be a retailer suggesting a pair of socks at the payment counter or a pest exterminator suggesting a bonus roach exterminating plan for the next two years at a premium. Using credit card reader apps on your Androids, you can run a huge profit while regularly getting your clients to buy such last minutes upgrades. Such tactics would be next to impossible with cash transactions.

5. Customers Chasing Discounts equals More Money - People love buying things when they are made to believe that right at that very moment they are getting an excellent deal. That is basically the whole logic behind discounts. But let's accept it - not all of us are geniuses at math. Calculating the discount using cash payments and then having to deal with all those decimals can often kill the fun that discounts offer. If you're a retailer, you would want to avoid such complications at all costs. It's not that hard - just let your customers pay using their credit cards and then type in the discount percentage and you're good to go. The easier it is for customers to grasp discounts, the more they will come back to such deals. If you're an 'on-the-go' kind of a service provider, then services like 'PayAnywhere' , 'Intuit's Gopayment', 'Square' or 'Paypal Here' will take care of all such calculations so that you or your clients do not have to sweat your brains out.

The main things you need to take care of, is to make things easy for your clients and customers. In doing so, you naturally make them like you and your business. Also, with add-ons like credit card reader apps, you also ensure that transactions are a matter of seconds irrespective of where you are.