Brick-and-mortar retailers face unique challenges when it comes to cash management. While digital payments continue to grow, cash remains a significant portion of retail transactions. And this cash requires secure and efficient handling processes. Many retailers have turned to armored courier services as a solution, but this approach isn’t without its complications.
Why are retailers increasingly relying on armored couriers?
The traditional method of having employees make bank runs has long been the standard practice for retailers. However, this approach introduces several vulnerabilities. Store managers or trusted employees must leave their posts, carry substantial amounts of cash, and spend valuable time traveling to and from banking locations.
Armored courier services emerged as a solution to these challenges, offering dedicated professionals with specialized equipment to transport cash securely. This service allows store employees to remain on-site, focusing on customer service and operations rather than cash transportation.
However, the reality of armored courier services isn’t all “unicorns and rainbows”. These services add another expense to retail operations and can sometimes prove unreliable, with missed or delayed pickups disrupting cash flow and potentially creating security risks.
The rising cost of cash management
Cash handling represents a significant expense for retailers that often goes underappreciated. Banks typically charge substantial fees for cash processing services, with many retailers paying over $200 monthly just to deposit cash. These costs don’t include charges for currency deliveries or other cash-related banking services. Then there are the added costs associated with the time and effort for managers or trusted employees to make each bank run – often up to 20 hours, or $600 in labor costs, per month.
Retailers who implement armored courier services generally save on labor costs associated with bank trips. Employees no longer need to leave the premises, reducing both the direct time cost and the opportunity cost of having key personnel away from the store.
The primary benefit comes from enhanced cash security, through this improvement comes at a price. Armored courier services typically charge $60-75 per visit. For a retailer scheduling weekly pickups, this translates to approximately $240 monthly, plus any additional surcharges for fuel, insurance, or other fees.
Security asset or liability?
When functioning optimally, armored courier services provide significant security benefits:
- Professional guards equipped with proper protection and weapons
- Purpose-built vehicles designed to resist theft attempts
- Elimination of employee exposure to risk during cash transport
- Reduced time with managers away from the store
However, the reality often falls short of this ideal scenario. To manage costs, many retailers reduce their pickup frequency, leading to larger cash accumulations between collections. This practice increases the in-store cash volume, potentially creating greater security vulnerabilities.
More problematic are situations where armored couriers miss scheduled pickups or arrive significantly late. These disruptions result in:
- Unexpectedly large cash holdings remaining on premises
- Increased store vulnerability to external theft
- Greater internal theft temptation for employees aware of the accumulated cash
- Inefficient use of capital, as idle cash can't be used for inventory, bill payments, or other business needs
Security experts note that most retail robberies aren't spontaneous events. Criminals typically observe stores to identify patterns and vulnerabilities before attempting theft. They often know when cash pickups occur—or when they're missed—making stores with disrupted pickup schedules particularly vulnerable.
There is a better way
Rather than relying solely on traditional armored courier services, forward-thinking retailers are exploring integrated cash recycling systems like BANK IN A BOX. The BANK IN A BOX program incorporates armored courier services within a broader cash management solution.
This technology functions as both an in-store cash recycler and a consumer financial kiosk. Cash deposited into the system remains available for:
- Providing register start-of-day funds
- Supplying additional currency throughout business hours
- Enabling consumer financial services, including ATM withdrawals in various denominations (such as $1s, $5s, $10s, $20s, $50s, and $100s)
This approach creates a closed-loop system that maintains lower cash volumes within the store. By continuously recycling cash between customer transactions and store operations, these systems:
- Reduce employee theft temptation through limited cash access
- Lower the risk of external theft by minimizing visible cash handling
- Limit overall vulnerability through improved cash security
Even better, the BANK IN A BOX system addresses those pesky bank fees. Instead of $200 or more per month to deposit physical cash, your money is ACH-deposited into your account the next day.
Finding the right balance
Armored courier services represent a valuable tool in retail cash management, offering improved security and operational efficiency when implemented correctly. However, retailers must consider the full spectrum of cash handling challenges rather than viewing courier services as a complete solution.
When courier services face disruption or delays, retailers need reliable backup systems to maintain cash flow and security. Integrated approaches, like BANK IN A BOX, that combine secure storage, cash recycling capabilities, and courier services provide the most comprehensive protection while optimizing cash utilization throughout the business.
By addressing cash management holistically, retailers can enhance security, reduce costs, and ensure that their cash assets remain productive rather than sitting idle between infrequent pickups.
Take Control of Your Multi-Store Cash Management
Your retail cash management doesn’t have to eat into your profits. Leveraging the latest in-store cash innovations, like BANK IN A BOX, can help your business improve operations and cut cash expenses in the new year.