Cash Only a thing of the past?

[japancool]

But the fact we pay on card, is it an extra cost for us?

No. Retailers are no longer allowed to charge an extra surcharge for paying by credit or debit card.

 

[NewTime]

No. Retailers are no longer allowed to charge an extra surcharge for paying by credit or debit card.

I didn't mean it like that and I know that they can't pass a card charge onto us.

But if a retailer knows that they are going to get £x amount in card charges, specifically smaller businesses, how can we be sure that they aren't passing that charge onto us through the products?

 

[StevensOnln1]

I didn't mean it like that and I know that they can't pass a card charge onto us.

But if a retailer knows that they are going to get £x amount in card charges, specifically smaller businesses, how can we be sure that they aren't passing that charge onto us through the products?

It's entirely possible that paying cash into their bank costs more in percentage terms than accepting card payments. When you also take into account the time spent counting and taking cash to the bank or post office it's easy to see why some businesses don't accept cash any more.

 

[simon field]

I didn't mean it like that and I know that they can't pass a card charge onto us.

But if a retailer knows that they are going to get £x amount in card charges, specifically smaller businesses, how can we be sure that they aren't passing that charge onto us through the products?

By looking at the price?

 

[Newchodge]

I didn't mean it like that and I know that they can't pass a card charge onto us.

But if a retailer knows that they are going to get £x amount in card charges, specifically smaller businesses, how can we be sure that they aren't passing that charge onto us through the products?

Of course they are passing on that cost through their products, the same way they pass the cost of their rent and rates and employee wages and stock and utility costs. How do you think nusiness works?

 

[fisicx]

My hairdresser is both cash and card, but they get charged on card, so I get cash out.

Doing this means they are losing money. They have to drive the bank, pay for parking, hand the cash over and get charged a handling fee. While they are doing this (once a week at least) they aren’t cutting hair. Paying with a card increases their profit.

 

[Newchodge]

Doing this means they are losing money. They have to drive the bank, pay for parking, hand the cash over and get charged a handling fee. While they are doing this (once a week at least) they aren’t cutting hair. Paying with a card increases their profit.

Only if they bank their cash as a separate transaction, in an account that charges a handling fee. Many don't.

 

[ecommerce84]

I didn't mean it like that and I know that they can't pass a card charge onto us.

But if a retailer knows that they are going to get £x amount in card charges, specifically smaller businesses, how can we be sure that they aren't passing that charge onto us through the products?

All my customers pay the fee for my card charges, and they also pay for the fees I incur when depositing cash in the bank.

In the same way that they pay my rent and electricity bills.

I agree with @fisicx for most businesses the cost of processing cash is higher than for processing card payments - it certainly is for us.

 

[fisicx]

Only if they bank their cash as a separate transaction, in an account that charges a handling fee. Many don't.

Yes, but you still need to drive to the bank, pay for parking, queue up to make the deposit then drive back to the office. All the time you are doing this you are non-productive.

 

[Mark T Jones]

Yes, but you still need to drive to the bank, pay for parking, queue up to make the deposit then drive back to the office. All the time you are doing this you are non-productive.

There are always multiple variables - here's one I bet you hadn't considered:

Father of a former girlfriend ran a convenience store.

Every morning, late AM he would cash the previous days takings - on a Monday that could be a lot of money!

He insisted on doing it himself because he enjoyed it, it went

Park in pub car park
Have a pint (holding a briefcase full of cash)
Bank cash
Have another pint
Drive back to work.

Despite multiple warnings to bank the cash before going to the pub, he stuck to that routine until the day he sold up.

 

[fisicx]

I knew someone like that. Went to the bank same time every week. He got robbed three times and still didn’t change his routine.

A convenience store near where my wife works in London is cash free. You don’t need a float, check the till, do a bank run, get robbed. The money is in the bank as soon as a purchase is made. Bloke who cleans our windows has a sumup machine. Reckons is the best thing he ever did.

 

[Newchodge]

Yes, but you still need to drive to the bank, pay for parking, queue up to make the deposit then drive back to the office. All the time you are doing this you are non-productive.

Presumably they visit the shops and could combine the journeys?

 

[WaveJumper]

Interesting as the latest press reports last week were people are turning to cash to keep a better control on their finances as things get harder

 

[MBE2017]

Interesting as the latest press reports last week were people are turning to cash to keep a better control on their finances as things get harder

I think this will increase, as things bite, many will turn to cash only deals to try and survive. As others mentioned, cash is not going to die out, it is resurgent atm due to economic necessity. For many paying cash into a heavily overdrawn bank account is not an option when you need food, you might as well throw it down the drain, the bank will take it and not care your kids are starving.

 

[HFE Signs]

Personally I would still buy if you were selling something I wanted, I always keep some cash with me, however I do think cash only would be a mistake and a step backwards - most people expect to pay with card or phones and if they walk out your shop, they are unlikely to come back in again.

 

[Kitsunae]

We were up in the Lake District and Yorkshire over summer and surprised at the number of places that only took cash.

 

[Bob Morgan]

We were up in the Lake District and Yorkshire over summer and surprised at the number of places that only took cash.

'Brass is Brass' - As they say in The North!

 

[Copy4.co.uk]

As long as taxes exist, so will cash-only transactions!

But seriously... there is a chip shop nearby, and it's SUPER annoying that they only accept cash.
I don't like having loose change and the closest cash point is in a dark alley... it's made me go somewhere else more than 50% of the time!

On the other side of things: If I'm at a car boot sale, a food fayre, or buying from a craft stool, I 100% choose cash payments for security.

In my old job role, I discovered how easily people can steal your credit card details (even if they aren't the vendor) and 9/10 they were never caught.

So, it gives me great peace of mind to have at least some cash available when I need it.

 

[GFI]

It would be interesting to run this poll on Facebook, Instagram, Tik Tok, etc to compare results across different demographic of people. Just thinking my 20 y/o daughter pays for everything through either PayPal or Apple Pay herself, yet my wife of a similar age to myself uses cash all the time (never ask a lady her age).

My 22yr old daughter has just moved into her own appartment.

On top of helping her make it a home (carpets, some furniture etc) I handed her £500 cash.

She said "what will i use that for".

I said "stick it in a drawer and don't think about it, one day you will be glad it was there".

And one day she will!

She will never need for anything, she has us. But sometimes cash is cash.

 

[ecommerce84]

As long as taxes exist, so will cash-only transactions!

But seriously... there is a chip shop nearby, and it's SUPER annoying that they only accept cash.
I don't like having loose change and the closest cash point is in a dark alley... it's made me go somewhere else more than 50% of the time!

On the other side of things: If I'm at a car boot sale, a food fayre, or buying from a craft stool, I 100% choose cash payments for security.

In my old job role, I discovered how easily people can steal your credit card details (even if they aren't the vendor) and 9/10 they were never caught.

So, it gives me great peace of mind to have at least some cash available when I need it.

Completely agree about places that are cash only, it’s so annoying. The burger van nearest to where I work is cash only. The first time I went there, he said “you can get cash at the M & S garage”. Indeed, but they also sell sausage baps, bacon baps etc.

I actually walk past it to get to his place so if I’m going to stop to get cash, I may aswell just pick up food there. I don’t, as his breakfast offerings are far superior but it’s still annoying.

On the other side of the cashless coin, our stall trades at a lot of food festivals and markets and 90% - 95% of our payments are card/contactless phone payments. The modern Zettle/SumUp machines offer a lot of security to the merchant and customer.

Given how cheap it is to process card payments vs cash, I’m always astonished when somewhere doesn’t take cards.

 

[Kerwin]

I have to pay £5 in cash weekly for an accommodation charge. It means I have to get someone else to give me £20 a month and then pay them back via mobile banking. I can't set up a standing order to make the payment as the accommodation only accepts cash.

 

[Karimbo]

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Had a chat to my barber about this, he is cash only.

Rightfully he doesn't need to take card and wont.

He blocked up back to back with haircuts. If a customer turns away because of no card, it's better for him, he can take a break.

He did ask me about card payments and I told him I need to do it because my businesses are online.

The moment he takes card, all his cash customers will just whip out the card and that's 50p to 70p fee per transaction on his labour gone down the plug hole.

He isn't selling a product, he's offering a serviceabd he is at max capacity as a cash only business. When he accepts card it's going to be some £100 to £200 cost per month

 

[Ozzy]

The moment he takes card, all his cash customers will just whip out the card and that's 50p to 70p fee per transaction on his labour gone down the plug hole.

I think he needs to negotiate his fees, but that aside. Last time I checked it was more expensive to handle cash than it was card and bank payments, so surely I would expect it would be cheaper for him to take card payments and less faff than handling cash.

 

[Newchodge]

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Had a chat to my barber about this, he is cash only.

Rightfully he doesn't need to take card and wont.

He blocked up back to back with haircuts. If a customer turns away because of no card, it's better for him, he can take a break.

He did ask me about card payments and I told him I need to do it because my businesses are online.

The moment he takes card, all his cash customers will just whip out the card and that's 50p to 70p fee per transaction on his labour gone down the plug hole.

He isn't selling a product, he's offering a serviceabd he is at max capacity as a cash only business. When he accepts card it's going to be some £100 to £200 cost per month

Apart from the card processing costs, there is also the loss of a tip. Paying in cash it is far more comfortable to add a tip than if paying by card.