As the rise of cashless payments continues, the memes against it with certain types continue.
They’re all pretty much of a muchness, and the only valid point any of them make is “what do you do if the payment networks fail”.
Cash is king, they say, which I can’t help but agree with. There’s much in common with insisting on cash and having a monarch:
* It annoys some people
* It causes inconvenience
* It costs money, and the costs are largely hidden from you
* It’s an example of tax avoidance
* It’s an anachronism
I’m not suggesting we eliminate cash (yet?), but I would like to pick apart some of the myths that surround this cash is king idea.
One image doing the rounds on Facebook recently is a blackboard that says:
PLEASE USE CASH IF YOU CAN LAST WEEK OUR CARD MACHINE CHARGES WERE EQUAL TO A DAY’S WAGES FOR A MEMBER OF OUR TEAM.
So, let’s assume they only pay minimum wage. UK minimum wage, currently, costs the employer £102 per day, including all legally required employer costs, assuming a 40 hour week.
A relatively expensive pay-as-you-go card transaction deal- with someone like SumUp- takes 1.6% fees, with no other charges. A really good merchant account will have a rental charge for a machine, but much lower percentage fees.
My arithmetic isn’t that good, so you’re welcome to correct me, but if I have this right, to run up £102 in card payment charges you’d have to take around £6000 in card payments alone. Every day, which seems like a pretty good turnover.
The biggest error, of course, is the assumption that cash is free to handle. This is an assumption many make, because the charges for card fees are visible, but the costs of handling cash are largely hidden.
we pay commission fees on every card sale,lowering profits. No commission on cash
as one poster said.
If you take cash, you have to maintain a float (with change). You have to count and bag the cash, take it to a bank, and pay it in- paying a fee to do so, risking getting mugged, and spending time, and probably fuel/parking to do so.
The exception, of course, is if all your outgoings are cash, which I’m told is very convenient for minimising your tax burden, as they say, but obviously no-one would wish to avoid declaring income, huh?
There’s also the ones that say
The government and banks can track what you’re spending your money on
and while there’s truth here, seeing as how this government are just so incompetent, the chance of them competently tracking my purchases and finding anything worthwhile are pretty fucking minimal, even if they have access to the point-of-sale data from my local convenience store (because if they don’t, all they know is how much I spent, at what time).
Oh look- this guy has bought 4 cans of lager, a bottle of wine, and an Indian takeaway. Best we keep an eye on him.
A loosely connected bit of bullshit is this one:
First and foremost, using cash is a great way to support local businesses. When you pay with a banknote, that money stays within the community and can be used by others for a wide variety of purposes. For example, imagine you have a £50 banknote in your pocket that you use to pay for dinner at a local restaurant. The owner of the restaurant can then use that same note to pay for laundry services, and so on. After multiple transactions, the banknote will still retain its original £50 value, benefiting everyone who has used it as payment.
Which is the biggest load of toss. Unless every single transaction remains as cash and none of the businesses use a bank or a credit account, or have a mortgage or bank loan, it isn’t true. Obviously, the note retains value- but at the point it re-enters the banking system, someone is paying for it to be deposited, and often far more than 1.6%. As to the local business angle, people will either use local ones or not, and the cash isn’t simply a factor.
The only valid reason to insist on cash is to hide transactions: i.e: to avoid tax. And you’ll be turning away customers who can’t be arsed going to an ATM.
By all means accept cash. Hell, don’t take card payments if you like, but don’t kid yourself it’s saving money, helping local commerce, or is a great statement of freedom.