“iBoxPay’s iPad-based point-of-sale” by Nagarjun is licensed under CC BY 2.0
“iBoxPay’s iPad-based point-of-sale” by Nagarjun is licensed under CC BY 2.0

Contactless Transactions

The COVID-19 pandemic has encouraged many consumers to move to contactless transactions. With the demand cashless transactions, businesses would need to adapt and begin accepting different types of payments. Some of the point-of-sale providers that offer contactless payment services are: Square, Inc., Shopify, Revel Systems, QuickBooks, and lightspeed. The following table compares the processing and monthly fees that accompany these plans.

Plans Processing Fees Monthly Fee
Square, Inc. 2.65% + 10¢ $0
Shopify POS Lite 2.40% + 10¢ $01
Revel Systems 2.49% + 10¢ $992
QuickBooks Pay as you Go 1.00%-3.50% $0
QuickBooks Pay monthly 1.00%-3.20% + 25¢ $19.95
lightspeed 2.60% + 10¢3 $894

There are some major differences between the plans. Square, Inc. is the only provider that includes a free card reader with their plan. lightspeed offers a subscription model to attain registers at $39 per month per register. The QuickBooks plans also require a one-time fee that ranges from $1,200 to $1,900.

Payment Processor Comparison
Payment Processor Comparison
Payment Processor Comparison
Payment Processor Comparison

The Struggle of Going Cashless

Every day, transactions are recorded and are typically subject to taxes of the region they occur in. There are, however, transactions that may be hidden to evade paying taxes. The underground economy is economic activity that is partially or completely hidden from the government to avoid paying taxes or other obligations.5 These can vary from hidden rental income to unreported trade-related activity.6 Cash can be undetectable and hard to track, especially if the transactions are recorded fraudulently or not at all. When transactions are done digitally, there is a paper trail that could be followed. Businesses who rely on the underground economy may struggle to go cashless as their transactions would be recorded and thus would be susceptible to applicable taxes and fees.

Cash Accounting and Fraud

There are many ways for cash to be stolen from a business. Cash is almost untraceable if it is stolen and if someone wanted to steal an asset, it would be cash.7 An employee could commit cash larceny and steal cash after it was recorded on the books.8 It could be identified if a company maintained accurate cash records.9 To prevent cash larceny, an employer should separate duties so that a single employee isn’t in charge of an entire accounting transaction.10 An employer may also want to rotate employees and impose mandatory holidays so that their performance can be reviewed.11 Surprise cash counts can also reduce the risk of cash larceny as employees and ensure that critical role such as refunds or voids are approved by a supervisor.12 Skimming fraud or defalcation, is cash theft before the cash was recorded in the books.13 A company could pocket cash before it is recorded in their books to avoid taxes.14 It is difficult to track skimming as it doesn’t leave an audit trail, but could possibly be detected by a lower than expected revenue.15 A service business may find it more difficult to detect skimming as their transactions are related to inventory that is physically counted.16 To prevent skimming, a company should count cash daily and take frequent inventory counts to compare to the book amount.17 Excessive write-offs and shrinkage in inventory could also be a sign of skimming.18 Skimming could also be prevented by utilizing the prevention methods for cash larceny such as separating duties and mandatory holidays.19

Accounting Software Comparison
Accounting Software Comparison
Accounting Software Comparison
Accounting Software Comparison


Works Cited

Bragg, S. (2020, December 18). Cash fraud schemes. Retrieved from AccountingTools: https://www.accountingtools.com/articles/types-of-cash-fraud.html Brolin, D. W. (2019, January 23). How to Spot and Prevent Cash Skimming. Retrieved from Accounting Web: https://www.accountingweb.com/practice/clients/how-to-spot-and-prevent-cash-skimming Canada Revenue Agency. (2019, August 1). Underground economy strategy 2018 - 2021. Retrieved from Government of Canada: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/corporate-reports-information/underground-economy-strategy-2018-2021.html#Whtsthundrgundcnm Corporate Finance Institute. (2021). Cash Larceny. Retrieved from Corporate Finance Institute: https://corporatefinanceinstitute.com/resources/knowledge/other/cash-larceny/ Corporate Finance Institute. (2021). Skimming Fraud. Retrieved from Corporate Finance Institute: https://corporatefinanceinstitute.com/resources/knowledge/other/skimming-fraud/ Intuit. (2021). POS Payments. Retrieved from Intuit QuickBooks: https://quickbooks.intuit.com/desktop/point-of-sale/payments/ Intuit. (2021). Pricing. Retrieved from Intuit QuickBooks: https://quickbooks.intuit.com/desktop/point-of-sale/pricing/ lightspeed. (2021). Get the most powerful POS for your business . Retrieved from lightspeed: https://www.lightspeedhq.com/pos/retail/pricing/ My Accounting Course. (2021). What is Skimming? Retrieved from My Accounting Course: https://www.myaccountingcourse.com/accounting-dictionary/skimming#:~:text=Home%20%C2%BB%20Accounting%20Dictionary%20%C2%BB%20What%20is,of%20a%20business%20cash%20receipts. Revel Systems. (2021). Revel Pricing. Retrieved from Revel Systems: https://revelsystems.com/pricing/ Rogers, K. (2021). How Can a Company Detect Skimming? . Retrieved from Chron: https://smallbusiness.chron.com/can-company-detect-skimming-75887.html Shopify. (2021). Features and pricing. Retrieved from Shopify: https://www.shopify.ca/pos/features Shopify. (2021). Pricing. Retrieved from Shopify: https://www.shopify.ca/pricing Square, Inc. (2021). Point of Sale - Pricing. Retrieved from Square: https://squareup.com/ca/en/point-of-sale/pricing


  1. Requires Shopify plan that ranges from $29 USD/month to $299 USD/month ↩︎

  2. Per terminal ↩︎

  3. 2.6% + 30¢ if card is not present ↩︎

  4. $99/month if not paying annually. Plans range from $89 CAD/month to $289 CAD/month ↩︎

  5. (Canada Revenue Agency, 2019) ↩︎

  6. (Canada Revenue Agency, 2019)   ↩︎

  7. (Bragg, 2020) ↩︎

  8. (Corporate Finance Institute, 2021) ↩︎

  9. (Corporate Finance Institute, 2021) ↩︎

  10. (Corporate Finance Institute, 2021) ↩︎

  11. (Corporate Finance Institute, 2021) ↩︎

  12. (Corporate Finance Institute, 2021) ↩︎

  13. (Corporate Finance Institute, 2021) ↩︎

  14. (Corporate Finance Institute, 2021) ↩︎

  15. (Corporate Finance Institute, 2021) ↩︎

  16. (My Accounting Course, 2021) ↩︎

  17. (Rogers, 2021) ↩︎

  18. (Rogers, 2021) ↩︎

  19. (Brolin, 2019) ↩︎