Being able to securely and reliably transport money for your business is crucial. Whether you’re transporting money between ATMs, stores, or banks, knowing how to navigate the world of cash in transit can help you spend less time worrying about your funds and more time running your business.

Armored car services and cash transport can help your business thrive, but what does cash in transit mean? How does cash pickup work? Are there any alternative options available? This guide helps you understand everything you need to know about cash delivery.

Beige cash in transport armored truck outside a building

Learn how to shorten your distance to cash while fostering growth through strong business cash management.

What Is Cash in Transit?

Cash in transit means that physical currency is transported from one location to another. This can be from a business to the bank or vice versa. Even though many businesses do business online nowadays, there is still a pressing need for safe transportation of money between businesses and banks.

Money transport companies have been created to help securely transport this money. Some companies handle cash pickup and cash delivery, whereas others only handle one or the other.

How Cash in Transit Works

So, what is a deposit in transit? For traditional cash in transit, a business will hire a third-party armored car service to safely transport their money from place to place. These money truck companies will schedule times with your business to both pick up and drop off money in secure armored vehicles with trained staff.

While these services are often imperative for many businesses, it can get complicated to figure out cash logistics. This is because you have to facilitate communication between your business, the bank, any cash analytics company/software you use, and the armored car service separately. This type of cash delivery service can quickly become overwhelming.

Why Businesses Need Cash in Transit

Even though many retailers are increasingly doing business online, this doesn’t negate the need for cash-in-transit services. Deposits in transit still provide multiple benefits for businesses, so knowing how to obtain and transport secure cash is imperative. Some of the main reasons why businesses will always need money transport services include:

  • Cash Isn’t Going Anywhere: While less cash is being used, it still isn’t going anywhere anytime soon, so transporting money will always be necessary.
  • Ensures Security While Money is Transported: Having safe, armored vehicles gives you peace of mind that your money won’t be damaged or stolen during transit.
  • Keeps Business Staff On-Site: One of the biggest issues with a deposit in transit is that it takes staff off the premises. With cash-in-transit services, staff can stay on-site to help run the business effectively.
  • Faster Access to Deposits: These services also provide faster access to your deposits, as you don’t have to worry about making time to do the deposit yourself.
  • Increased Security For Customers and Banks: Cash in transit minimizes some security risks associated with carrying large deposits to the bank. Customers aren’t waiting in line holding large quantities of cash, and tellers don’t have to hurry in order to serve those customers faster so cash can be deposited. Scheduled drop-offs streamline the process, ensuring faster resolution and more peace of mind for everyone.

Counting money over an open register, hands holding a five dollar bill and penny

ICL’s software-first CashSimple™ solution streamlines everything from change orders to tracking deposits.

Cash in Transit Challenges for Retailers and Hospitality

While cash in transit is beneficial for many reasons, it can still pose problems, especially for those in the retail and restaurant or other hospitality industries.

For example, knowing how to get cash delivered also means that businesses need to be able to rely on armored car services to arrive on time. If there is a delay, this can drastically affect money flow. Below are some of the many challenges you can expect.

One of Many Relationships to Manage

Between suppliers, retailers, customers, bank support, and more, businesses have a lot of relationships they have to juggle. Cash in transit, while necessary, often creates stress by adding another relationship into the mix.

Armored Vehicles Don’t Arrive On Time

A common challenge is the money transport company doesn’t arrive on time. Retailers have to spend the time going to the bank to get change or deposit cash themselves. This creates added efficiency issues, and you’re paying for a service you can’t use as planned.

Hidden and Unexpected Fees

What many money transport companies don’t tell you is that there are often many hidden fees associated with their services, such as:

  • Security surcharges
  • Fuel surcharges
  • Safe maintenance fees
  • Holiday service charges
  • Training fees
  • Banking fees

However, with Integrated Cash Logistics, our cash-in-transit CashSimple™ service provides a daily rate with no added fees, so you know you’re getting the best service for the best price.

Ongoing Cash Liability Concerns

A cash truck can also present liability concerns. Money can be stolen or damaged in transit, and cash-in-transit services may not provide insurance or liability, meaning your money may just be gone.

Bank teller holding cash and looking at a bank card behind a teller window

Costs for armored car services is just one of many among other bank and logistics fees.

Additional Contingency Plans Needed

Even if your armored car service arrives on time, there may be external factors that can affect your money transfer, such as weather conditions or accidents. This requires additional contingency plans for deposits, which not all businesses may be able to accommodate.

Limited Customer Support

If there are issues with the cash in transit service, there is also the added issue of who to call when something goes wrong. Do you call the bank? The armored car service? Your insurance company? Also, depending on each company’s business hours, you may not be able to reach anyone when you need them. A single-point of contact like ICL offers can be a game changer for businesses needing immediate assistance.

Row of closed and locked retail cash registers in a store

For most retailers, provisional credit is the only option but for a daily flat rate, CashSimple does more.

Cash in Transit Challenges for Financial Institutions

Cash in transit isn’t only challenging for businesses, but these services can also be a hassle for banks and other financial institutions. These types of challenges usually arise from helping their clients use these services. These issues may include:

Armored Car Service Management Issues

While banks and armored car services are generally separate entities, many banks may end up having to deal with problems from the car company if they arise. From trying to reassure customers that their money’s on the way to staying in contact with drivers, this can create an added workload for bank employees as well.

Fragmented Cash Management Solutions

When there are many parties involved in cash management, this can cause problems with providing consistent solutions for businesses. Without a unified solution like Integrated Cash Logistics, this can lead to operational challenges and potential inefficiencies that take time and resources to fix.

Geographic Service Limitations

Banks may also run into issues providing services to companies outside their general area. This can create difficulties in bringing in added clients or providing current customers comprehensive coverage if bank locations are too spread out.

Increased Banking Relationship Complexity

Beyond geographic service limitations, another challenge presents itself when businesses have multiple bank accounts in various locations using numerous cash-in-transit companies.

Depending on where a business is, they may use different financial institutions and armored car service companies. This adds an extra layer of complexity to efficiently and securely transferring funds or reconciling bank statements and accounts.

Costly Virtual Vault Setups and Cash Vault Fees

To help capitalize on growing businesses, many banks set up virtual cash vaults to handle funds. It can be costly and time-consuming to manage, and for many banks, this is just another overhead cost for them to handle.

Bank teller counting twenty dollar bills behind teller window

Save on your bottom line by avoiding unexpected and hidden fees from other cash handling services.

Third-Party Risks and Contracting Challenges

Businesses aren’t the only ones who deal with third-party companies when they handle cash-in-transit services. Banks must be responsible for handling difficulties that arise with clients, the armored car service, and any other third party.

Limited Service Availability

Banks and other financial institutions may struggle to provide the comprehensive services a business needs, which can affect their ability to find and keep clients. Some limitations include not being able to provide 24/7 availability, added money transfer services, and more.

Why Outsource Your Cash in Transit Vendor

While there are many reasons why cash-in-transit services may prove difficult to manage, outsourcing your transit service to a company like Integrated Cash Logistics can remedy these problems. Benefits for banks and businesses mean you can simplify the entire process, reducing stress and increasing efficiency. Some of the many benefits include:

  • Comprehensive Liability Management: Services like ICL reduce the liability that traditional transit companies still struggle with. Once your money is deposited into the smart safe, it’s no longer the business’s responsibility. ICL buys the cash once it’s deposited, and the funds are in your bank account within 24 hours.
  • Simplified Banking Relationships: An all-inclusive vendor can handle communication with banks and other financial institutions. You don’t have to worry about lengthy phone calls or paperwork, and you can even reduce the number of banking relationships to save on costs.
  • Holistic Logistics Management: With Integrated Cash Logistics, there is a single point of contact for all of your vendors. You’re provided with a smart safe, ICL works with any bank of your choosing, and they have their own armored car service that completes deposits and transfers.
  • Cost-Effective Solutions: All of your services are included in one neat package. Stop worrying about juggling multiple vendors with varying costs. Integrated Cash Logistics provides a comprehensive and cost-efficient solution for your needs.
  • 24/7 Responsive Customer Support: An all-inclusive vendor like ICL also provides a single point of contact for 24/7 customer service. If you run into any issues or have questions, you only need to call one number to find the support you need.

ICL: Your Trusted Partner For Streamlined Cash in Transit

If you have been looking for a partner for cash-in-transit services, look no further than Integrated Cash Logistics. We handle everything for you, from deposits, transfers, analytics, transportation services, and more. Take stress off your shoulders, and spend more time running your business. 

Discover how to shorten your distance to cash with ICL. Reach out to our team today to schedule a demo, and we can get you started with efficient and simple cash-handling services.