Keep Cash Cheap-And Users Cheerful!

Every year,the British Retail Consortium publishes a survey of members transaction costs.Those members represent 80% of the major retailers in the UK.It is therefore a comprehensive survey with conclusive findings.

I am delighted to tell you that each year so far, cash has proven to be by far and away the most cost-effective payment for UK retailers to accept.The latest survey revealed that Debit Card transactions are on average 5 times more expensive to process for retailers than cash.Credit Cards though beat all records- they are around 20 times more expensive than cash!

Remember the "good old days" when retailers would give a customer a discount for using cash?Now you know why!

Cash cannot of course rest on its consumer-champion laurels.Those who supply cash must strive to keep it as cost effective as possible to access and use, both for consumers and retailers.

Part of retaining the cheapness of cash is making sure it is available everywhere (no special trips to banks to get it) and that the delivery channels keep charges to a minimum,including when retailers provide cash back.

Visa and MasteCard would both like to see cash become more expensive for retailers and consumers.This would make their cards seem more attractive.However,their costs are so much higher at the moment that it is hard to see how they can possibly bridge the gap.We must be wary though of attempts they make to do so.Cash has been our planets leading payment method for 2000 years and must not be sacrificed to the vested interests of the johnny-come-lately plastic peddlers!

Friday, 18th October 2013

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