Article provided by Bidvest Bank
A dedicated debit card takes cash out of the system
In a world that is increasingly moving away from cash, the petty cash box might seem like an irritating necessity. Who’s got the box? Where’s the key? Do we have enough small change? Why doesn’t the cash balance with the receipts?
A recently-introduced alternative is a debit card or petty cash card, which can be used by a company’s staff for small purchases. At present, about 100 of Bidvest Bank clients are using the bank’s Business Payment Card, including tour companies that load each driver’s daily allowance for petrol, toll fees, etc. onto it.
A business could have one petty cash card, preloaded with a payment limit. Every time staff members need to make small purchases for the company, they sign out the card and receive a unique PIN which enables them to use it. When the card is returned, it is deactivated along with the PIN. When the card is reactivated, a new PIN is issued to the next user.
It is still important to keep a register of who used the card on a particular day, and employees will still need to produce receipts for purchases made on the card, but those can be checked against a statement which the company can access on a dedicated online portal. The statement can be downloaded into an Excel spreadsheet and integrated with the company’s accounting system, if the format is compatible.
A petty cash card is much more flexible than issuing employees with a card which can only be used for petrol, or for other specified purchases. Like any other debit card, a petty cash card can also be used internationally.
Because of that flexibility, the business payment card could also be issued to staff who are travelling on behalf of the company, with their daily travel allowances pre-loaded onto it. This can be easier than issuing employees with cash or refunding them in cash when they return.
Good internal systems are necessary whether a debit card or cash is used for small company purchases. But eliminating the cash box will save the hours of counting, time and costs of banking and much of the balancing that managing a petty cash box demands.
According to the Harvard Business Review, in 2014, businesses in the United States (US) were losing about $40 billion a year just from the theft of cash, mainly small businesses that could not afford high-tech security systems.
Whether you do business in-store, online or over the phone, Bidvest Merchant Services makes it possible for your business to accept payments simply, securely and reliably.
In South Africa, e-commerce is growing at a rapid pace as more and more consumers choose to use cards and shop online to make payments. The key to capitalising on this growth is to ensure your customers can shop safely and securely.
Bidvest Merchant Services enables these SMEs to provide their customers with a secure choice of payment methods, and the latest technology for lightning fast transactions.
To speak to Bidvest Merchant Services about card payment options, full e-commerce packages, merchant investment options or cash advance to expand your business, call them on 0861 111 441 or visit: https://www.bidvestbank.co.za/personal/savings-and-investments