Small businesses and the hidden costs of cash

For many Filipinos, cash remains king—especially in remote areas where internet connectivity is unreliable, making digital payments less practical. However, while many small businesses readily accept cash, there are hidden costs that can impact their bottom line.
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The True Cost of Handling Cash
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For small businesses, managing cash comes with several challenges, including:
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1. Errors, Damage, and Theft
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Even minor mistakes—like a cashier giving incorrect change—can lead to financial losses. Beyond monetary loss, frequent errors cause longer checkout times, frustrated customers, and operational inefficiencies.

But the risks don’t stop at human error. Theft and cash destruction are major concerns. In the U.S., retailers lost $112 billion in 2022 due to rising crime. While there is limited recent data for the Philippines, a 2015 study reported that 17% of local businesses experienced losses due to theft, robbery, vandalism, or arson.
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2. Time-Consuming Cash Management
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Handling transactions, making change, balancing registers, and preparing deposits consume valuable employee time. In some cases, businesses even hire extra staff just to manage cash—adding to payroll costs and reducing productivity.
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3. The Cost of Security
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As businesses grow, so do their security needs. Even small retailers must invest in tamper-proof cash registers, safes, and CCTV cameras. Transporting cash to the bank also comes with risks and costs—whether it’s fuel for frequent deposits or fees for secure courier services.
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What Businesses Can Do
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With 87% of transactions in the Philippines still made in cash, according to a Visa survey, completely eliminating cash payments isn’t realistic. However, businesses can take steps to minimize risks and costs:
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• Standardized Cash Handling Procedures – Proper training on cash counting, reconciliation, and security best practices can reduce losses and inefficiencies.
  
  
• Automation – If budget allows, investing in cash-counting machines or automated tracking systems can improve accuracy and security.
  
  
• Easier Bank Deposits – Finding efficient ways to deposit earnings can prevent theft and free up valuable time.
  
  

A Smarter Way to Deposit Cash
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For businesses in remote areas, bank deposits can be a major challenge. Many store owners rely on pawnshops, which can be risky and time-consuming. Others simply don’t deposit earnings because their transaction sizes are too small.
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That’s why eTap Solutions introduced ePuhunan—a service designed to help store owners deposit cash quickly and securely.
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Through eTap kiosks, businesses can:
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✅ Enter their ePuhunan account details (available via joe@etapinc.com)
✅ Confirm the transaction
✅ Insert cash
✅ Receive an instant confirmation
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With flexible deposit amounts, store owners can make multiple deposits daily to major banks like BDO, BPI, Metrobank, Chinabank, and UnionBank—without the hassle of traveling long distances.
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The Bottom Line
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While cash may still be king in the Philippines, businesses don’t have to accept the headaches that come with it. By improving cash-handling procedures and leveraging solutions like ePuhunan, small businesses can operate more securely, efficiently, and profitably.

Article by Pancho Dizon
Thumbnail by Brennan Cahilig

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