According to the 2016 Collecting Agency Operations and Technology Survey, 67% of the surveyed agencies still collect cash payments. While this is down from 72% in 2015, it is still high. A wise move for agencies is to add online payment capabilities to their offerings and begin to migrate their clients to those payment methods as quickly as possible. Why? Because cash payments have several downsides. Here are three of them.
Lost Cash Deposits
A common business practice for agencies that take cash payments is to have a manager or other agent of the business deposit all cash and checks after the close of the business day. This is often done after the bank has closed. The agent usually drops a pouch in a deposit box for this purpose.
Problems happen when the deposit goes unaccounted for. This is usually first noticed by someone in the agency’s accounting department several days after the deposit has been made. If the bank does not record the deposit, then the payment to an outstanding bill is not recorded either. So in addition to lost revenue for the agency there is a lost payment for the consumer which can impact their payment record.
Time spent by collection agents on clerical tasks is one of the biggest factors that cause decreased agent productivity. Manual tasks that must be performed by an agent when taking a cash payment include contact, bringing up the account, collecting the cash, recording the cash, recording the account to be paid, printing a receipt and storing the cash for later deposit. All of these tasks take up valuable time that could be devoted to more productive activities.
If you accept mostly cash payments for debt settlements, consider migrating those cash clients to your online payment capabilities. Doing so can have a positive impact on your business in terms of productivity, compliance and client goodwill.