Presuming that all our troubles and losses have gone with the demise of cash, however, is a false hope. No matter how popular these contactless payment methods have become, there is a dark side to going cashless that many fail to recognise. 

 Malcolm Muir, Consultancy Director of business solutions company Venners, gives 3 warnings that every hospitality operator should heed as and when they decide to go cashless.

 1. Revenue made through cashless transactions is never 100% safe from losses

 The introduction of cashless systems has removed some of the previously well-known risks associated with cash transactions, yet revenue collected through cashless payment systems is still vulnerable to gaps in financial controls. 

 Venners audits have witnessed that sites which were experiencing cash losses prior to going cashless, continue to be exposed to perpetrators who rely on the extra income, as they simply find new means to cheat the system. Manipulation of service charges and tronc, plus insertion of rogue card machines, have been new methods that have seen a rise in abuse. One sign to help you spot this type of abuse is to regularly monitor till variances and to dig deeper when you find any, as someone may be manipulating revenue.

 2. Cashless transactions cannot account for losses caused by human error 

 42% of losses prior to the pandemic were due to staff error rather than any malicious attempt to extract money according to Venners observation audits, which investigate the underlying causes of serious stock losses.  

 Now that more transactions are being done via delayed payment, rather than an immediate revenue transaction, human error is having an even bigger impact on stock results than before. Most frequently it can be linked back to food and drink being left off bills by accident. This is exasperated by the introduction of less experienced staff who are even more likely to miss extra products and drinks from a table bill.
The reliance on automation does not always deliver the best results since it can hide human errors, but frequent compliance checks on service standards can help to reduce these errors. 

 3. Going cashless does not eliminate the use of cash in your business

 While cash is still an option in society, any business that decides to go cashless will continue to be threatened with losses through the ‘convenience’ of paying in cash. One common trend Venners consultants have come across is that some guests still want to pay with cash and will actively persuade staff to accept cash from them. With no means to enter it as revenue, it is simply pocketed by the staff.  

 Tightening up internal policies may be one solution to addressing these types of issues. Equally, regular stocktakes can help to hold managers to account for stock losses and eliminate these types of actions. 

 Operators looking for further assistance to safeguard their business from losses should visit www.venners.com.