06/ 03/ 2008
by Rachel Hartman
Cash is no longer king at Café 3456 in Bend, Ore. The restaurant, which caters to business travelers, instituted a no-cash policy last year. Now they accept only credit or debit cards.
Owner Dave Hatfield does everything from writing menus and washing dishes to organizing finances. Counting cash only added to his already long to-do list. "I needed a way to streamline the whole operation," Hatfield says.
The plastic route solved other issues as well. With the nearest bank nine miles away, Hatfield had trouble making the daily drop. He also wanted a more secure setup. "We're open seven days a week," he says, and with cash out in the open, he felt like he couldn't take a day off.
In exchange for going cashless, Hatfield's merchant provider reduced his rates. The credit card fees still increased, but Hatfield says, "I was saving just as much in labor and gas." While it's been a financial wash, Hatfield has benefited greatly from the management end.
After switching to the cashless policy, Hatfield notes that sales have "not been hurt whatsoever." Most of his clients are business travelers. "For them, it's easier not to have to pay with cash."
Corecubed, a Louisville, Ky-based marketing company, went cashless after checks for completed work never arrived. "Most of our clients come from our Web marketing initiatives," says managing director Merrily Orsini, "so we have no immediate personal relationship with them."
The company now insists on credit card payment up front, and also for ongoing invoices. In addition to not getting burned, switching to plastic keeps cash flow more even, Orsini adds. "The extra credit card expense has been well worth it."
