Cash vs Credit Card...
To follow, in a sort of way, from lasts months blog, I was inspired by another post I have seen doing the rounds on social media.
Remember in lockdown when you had those notes in your purse that where nearly moth eaten because you never managed to spend them? Well, even though we are back out again, it seems the habit of paying by credit card has stuck. Whilst many places are now cashless, many small businesses are happy to accept both.
Whilst you are being fabulous and supporting small businesses, if they accept cash, you will be helping them by paying in cash. Why? Pesky bank charges.
It is something that we all forget about. It is so easy to just reach for our cards, or more often are phones or watches, tap and run. I am guilty of this too. But each transaction has a charge associated with it. The charges vary depending on terminal providers, and credit card providers, but there is always a charge.
Below is a little post I found online that demonstrates what happens to our “money” when we pay by card:
“Why should we pay cash everywhere with banknotes instead of a card?
I have a £50 banknote in my pocket. Going to a restaurant and paying for dinner with it.
The restaurant owner then uses the note to pay for the laundry.
The laundry owner then uses the note to pay the barber.
The barber will then use the note to pay for shopping.
After an unlimited number of payments, the note remains £50 in value, which has fulfilled its purpose to everyone who used it for payment and the bank has jumped dry from every cash payment transaction made.
IF I go to a restaurant and pay digitally via Card, the bank fees for my payment transaction charged to the seller are, say, 3%, so around £1.50
And so, let’s say the fee will be £1.50 for each further payment transaction;
for the owner of the restaurant to pay for laundry, the laundry owner to pay the barber, the barber to pay for shopping and so on....
After 30 transactions, the initial £50 will exist at only £5, and the remaining £45 has become the property of the bank … thanks to all the digital transactions and fees!”
We have a little sign by our coffee machine to pay by cash where possible for this reason. In one year alone, our card charges doubled to approximately £15,000. This year they will be even more. If you pay by card the business owner is not getting 100% of your support.
I am not suggesting carrying a wallet of cash around, but perhaps carrying a note or two and paying for your small purchases in cash. I know many businesses would appreciate it.