Is your cash physically fit?

Cash on CRTMore cash, more loss.

The NRF  Tuesday released a study saying cash or debit will be the payment of choice this season for 71% of shoppers. The good news is that cash still has the lowest, per-transaction cost. The bad news is that unlike electronic payments, cash grows physically as volumes increase.

Automation is at its best when volumes increase.

When you count manually, even a marginal increase in the number of notes taken adds to your counting time, especially since many notes are counted 3 and even 4 times. Not so when you use automation. When you count at 20+ notes per second, volume increases have little impact. In this regard, we coincidentally last week learned of the next big advancement in desk-top currency counting technology, from Cummins-Allison Corporation. This blog doesn’t endorse any manufacturer, but this is a significant step forward. The i100 series JetScan iFX digitally reads the denomination and captures an image of the serial number at 1200 notes per minute. 2 things about this technology are germane to this discussion:

  • Capturing the serial number brings an entirely new level of evidence, if your chain-of-custody is up to par. More cash equals more differences (aka, “shortages.”)
  • The cash does not go into a cassette. Desktop solutions are less impacted when volumes increase.

5-Point Check-up for Better Currency Health:

  1. If you skim your registers based on the clock, rather than dollar limits, consider increasing the schedule.
  2. Review change funds and change orders. More cash transactions might demand more change.
  3. Look at any physical constraints you experience in your environment.  If you use technology that counts and immediately stores cash in a cassette or drum, look at your higher volume locations. You may have to increase capacity. Are your deposit bags able to handle your increased volume without going to additional deposits? If you pay a fee for each deposit slip, it may be less expensive to go to a larger bag . . . and more simple to reconcile your bank and sales audit.
  4. Look at your armored car schedule, and the amount of cash kept in the store.
  5. AND THE BIG ONE – Keep a close eye on cash refunds. More cash transactions . . . more temptations.

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