Why Cashback is Good for Your Business
Cashback has become an increasingly common offering among UK businesses. In this article we’ll look into the benefits of offering cashback, as well as how you can go about doing it if you aren’t already.
The benefits of offering cashback
Offering cashback has a number of benefits.
Perhaps most obviously, it’s beneficial for customers – however, that makes it beneficial for you as well. Offering cashback is an incentive for customers to use your services. If they need cash, but have a purchase in mind, then you offering cashback might convince them to come in and make that purchase rather than using a cash machine.
This gives you a chance to build a positive impression with that customer. Your establishment has delivered a service they needed – if all other things in your business are working well, then hopefully they will have had a good experience.
You might be on the way to creating a loyal return customer – they’ll likely think of your business next time they need cash.
Reduce the amount of cash on-site
The other great benefit of cashback is simply that it means you end up with less cash on premises. This is a good thing for several reasons.
Firstly, it puts you at less risk in the event of a break in or burglary – the more of your takings that are digital, the less there is to take. Not only does this make you less vulnerable in the unfortunate event that a break in occurs, it also makes your business a less appealing target.
Secondly, having less cash can actually save you money. By cutting down on the amount of cash you need to take to the bank, you can reduce the fees you’re paying when it comes to processing your takings at the bank.
When it comes to making cashback part of your business’ offering, there are a few steps you’ll need to take.
Firstly, you’ll need to get in touch with your merchant services provider and sign an additional agreement. This will set a limit on the amount of cashback you can provide. Previously, the maximum amount of cashback per transaction was £50 so this limit may be set on your cash machine – it’s worth checking if you can upgrade you so that you can offer the current UK limit of £100.
Next, you need to make sure customers know that you offer the service. That could mean some signage at point of safe, or simply getting your staff to ask customers if they would like cashback with each transaction.
In terms of delivering cashback, it’s recommended that you get the customer to initial or sign their receipt to confirm they’ve received the cash. This prevents any retroactive accusations of foul play and gives you peace of mind that your staff are following the correct procedures.
Let’s talk about how you can offer cashback
Whether you’re an existing First Data client or would like to know more about how we can help you offer cashback, then we’d love to talk about the options available to your business.
Connect with us today and find out how you can make more out of cashback.