In the world of retail, the payment landscape is shifting. While some small businesses, like Diamond’s store, are still cash-only, it’s becoming increasingly rare to encounter a retailer that doesn’t accept card or digital payments. Anila Ali, a shop owner in Edinburgh, claims only 10% of her customers pay with cash. However, it’s vital that retailers continue to accept cash, for more reasons than one.
For starters, transaction fees for card payments can quickly add up and could lead to a “card tax” on retailers. Moreover, forcing customers to pay transaction fees for small purchases is likely to deter them from shopping there altogether. Furthermore, older shoppers and those on lower incomes may prefer using cash to manage their budgets, and not accepting cash payments could exclude them from participating in the marketplace.
Several countries have already introduced laws that require businesses and banks to continue accepting cash payments. This trend is likely to continue, and the UK may follow suit. However, any new legislation must ensure that the infrastructure remains in place to guarantee access to cash. For example, the amount of interchange fees for ATMs should be reviewed to guarantee that cash machines remain viable, rather than transitioning to paid-for models.
To cap it off, deposits fees for cash should also be reasonably priced to make it affordable for everyone who uses them. All in all, while it’s clear that cash is beginning to lose ground, it’s essential to keep it in the game, ensuring that everyone has a seat at the table.
