RETAIL: Cash Makes a Comeback
Listed under: News
Published: Friday, April 18, 2008
The British Retail Consortium (BRC) has revealed that consumers are increasingly opting to pay with notes and coins rather than flexing the plastic. Figures show cash has increased in dominance as a means of payment over the last twelve months, now being used for 60% of all transactions, up from 54% last year.
“Reports of the death of cash are premature,” says Stephen Robertson, BRC director general. “Cash is not only alive, it’s thriving. Hard-up customers are increasingly reluctant to spend money they haven’t actually got in their hands. While total retail spending continues to grow, there is a widening gap between the amount spent in cash and the amount spent using cards, suggesting customers want to keep tight control of their finances.”
With retailers facing high prices for processing card payments, this is in some respects welcome news. The BRC is accusing card companies of pushing cashless payment methods as a way of further boosting their own revenue. “We have consistently said these unjustifiable charges cost customers because they are so high retailers are forced to pass them on,” Stephen continues. “As banks move to replace cash transactions, they must acknowledge the very low costs they actually incur. They should not be exploiting new payment systems as a way of taking extra money from shoppers.”
“Reports of the death of cash are premature,” says Stephen Robertson, BRC director general. “Cash is not only alive, it’s thriving. Hard-up customers are increasingly reluctant to spend money they haven’t actually got in their hands. While total retail spending continues to grow, there is a widening gap between the amount spent in cash and the amount spent using cards, suggesting customers want to keep tight control of their finances.”
With retailers facing high prices for processing card payments, this is in some respects welcome news. The BRC is accusing card companies of pushing cashless payment methods as a way of further boosting their own revenue. “We have consistently said these unjustifiable charges cost customers because they are so high retailers are forced to pass them on,” Stephen continues. “As banks move to replace cash transactions, they must acknowledge the very low costs they actually incur. They should not be exploiting new payment systems as a way of taking extra money from shoppers.”
There are currently 2 comments - Have Your Say Today
Not only does cash not attract any processing charges, but it is much quicker to give change at retail shows when you are inundated with people trying to purchase from your stand. The card processing machines are much too slow and the whole process of inputting pin numbers etc. takes far too long.
The problem is that there is often no nearby ATM machine close at hand at large shows, and no information about its location.
Stay with cash I say- don’t inflate the banks profits even more!
However if you have a proper business Bank account like I do (with one of the Big Four) you will note that they now charge 68p for every £100 cash paid in to your account. What we really need is for the Banks to recognise the value of the small business to them, and stop ripping us off.