20% of our clients are in the retail & food industry or in a business using a Point of Sales (POS) system. Their daily transactions are composed of 20-30% cash and 70-80% Electronic Funds Transfer at Point of Sales (EFTPOS). Though the level of cash transactions may be seen as low, substantial fraud can often take place in cash transactions. According to the research undertaken by Inside Retail Australia, cash fraud penalties for some retail owners exceeded one million dollars.
If shop owners do not have an appropriate procedure for daily reconciliation,it is extremely troublesome to identify irregularities after a few weeks.Thinking of my first casual job as a student at a restaurant, I was responsible for reconciliation between a cash register and a POS system. This sometimes took up to 3 hours per day, but had been proven to be a worthwhile practice,for the restaurant as a small business. As EFTPOS became more popular, shop owners started to pay less attention to their cash revenue, which accelerated risk of fraud. Since owners largely rely on an auto-settlement system provided by EFTPOS providers,fraud in cash transactions have been much overlooked.Furthermore, shop owners may not have thought about potential fraud from EFTPOS transactions.