While some insurance agencies still accept cash payments, yours shouldn’t. Not only do cash payments pose a risk to your business, but you can lose money by continuing to receive cash.
Here are some of the most important reasons your insurance agency should stop accepting cash payments.
Accepting Cash Poses Risk to Your Agency
Even if your insurance agency has been accepting cash for many years, it is time to switch to an exclusively online payment system.
If you accept cash payments, your agency is vulnerable to the risk of theft. If you don’t have security measures in place to check the banknotes you receive, you may be accepting counterfeit money. You also run the risk of receiving stolen banknotes without realizing it.
Furthermore, it is dangerous to transport large sums of cash between your business and the bank. And if you decide to keep that cash on site, you become a target for burglars who may try their luck on your premises.
The Risk is Not Only on the Outside
It may be unpleasant to think about, but the risk of theft doesn’t only come from outside. You may have to deal with employees who take money from your business because it is within easy reach.
If you have one staff member dealing with cash payments, there is no guarantee that you won’t have to deal with fraudulent activity at some point. Fraud includes cash payments that aren’t noted anywhere and are never brought to your attention.
It Takes Time Away From More Important Tasks
Counting cash payments every day or every week is labor-intensive. Your staff could be spending that time on more crucial tasks, such as following up on renewals or new business.
Also, to reduce the risk of theft inside your agency, you would have to spend extra money on video surveillance and hire an auditor to check the books.
Online payment methods will allow for a more efficient payment system that will cost you less in the long run.
Accepting Cash Is Inconvenient For Your Customers
If you accept only cash payments, it becomes inconvenient for your customers. More than eighty percent of people in the US prefer using digital platforms to make payments. The most popular payment method in the US is by debit or credit card, while cash and checks occupy a distant second place.
If you don’t offer these options for online payments, you risk losing customers. Also, if you offer the option of purchasing insurance online, you should provide alternative payment methods, such as PayPal.
If you provide digital payment methods, you can reduce your operational costs and gain more customers.
Moving Away From Cash Payments Will Reduce Costs
If your agency moves away from cash payments, you will immediately see cost savings on paper, printing, and labor. You’ll need fewer staff members to manage online payments, and there will be no physical receipts to print.
On top of cost savings, you can collect customer data if you rely on online payments. Data on customer spending behavior allows you to expand your online options. In turn, this leads to an improved customer experience and increased sales.
Online Transactions Are More Secure
Any online system is fallible and may falter under a security breach. However, online payment systems are known for being reliable and secure.
You should choose a reputable merchant that ensures your online payments comply with the Payment Card Industry Security Standard. The standard consists of a set of mandatory safety measures that protect customers’ personal information when they purchase products online. It processes and stores all debit or credit card information in a secure environment.
There is minimal risk of losing money because if a client’s payment doesn’t go through, they won’t receive the insurance product. If you offer multiple ways to pay online, you won’t lose the customer altogether. For instance, if their credit card won’t work or has exceeded its limit, your customer can pay via debit card or even PayPal.
Going Cashless Creates a Streamlined Environment
What customers want even more than online payment methods is an insurance agency that they can trust. Customers prefer a seamless online experience where they can choose the products they want at leisure and pay for their purchases without experiencing difficulties.
If you remove cash from the equation, this is exactly what you can offer all your existing and potential customers. More than eighty-two percent of Americans shop and pay bills on their smartphones, which shows just how important an online payment system is.
An Insurance Agency Management System Offers a Transformative Experience
If you are ready to switch from cash payments to an online system, an insurance agency management system like JenesisNow will make the transition that much easier.
A management system can improve your turnaround time and provide an online portal where your customers can find documentation and information about their policies. Because the system is web-based, you can offer your clients automated invoicing and an online system that generates receipts upon payment.
It is time to elevate your insurance agency to the next level. Provide your customers with a convenient way to shop for insurance products by offering different payment methods, and watch as your business reaches new heights.