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Also, with interchange fees at 0.3% and total card fees <1% for many shops, it's actually cheaper for sellers to accept cards than cash.





This is something people always miss in this discussion!

Cash is not free for the business. People always assume that businesses are losing out on revenue by accepting cards, and thar cards inflate the price for everyone.

But it's not free to accept cash - you have to manage your float, transport cash between the bank and your premises, and there can be bank charges to account for too. All of which can easily eclipse the cost of card fees, especially in markets like the EU where those are capped.


How do you figure? Is it from counterfeit money, or cost to transport the cash?

There is risk of theft too, not just robbery but from employees.

Usually the main reason some shops prefer cash is because they can put the cash directly in their pocket and do tax fraud on a percentage of their revenue.


Bringing cash to a bank either via deposit boxes or by collection is not free and coinage is even more expensive than paper. At least here in Europe

Yes, the fee for processing coinage and old notes is 50% in the bank I work for.

Wow, I just pour my coins into a machine that sorts and counts them for free at my bank.. oh right.. Credit Union!

The easiest one is the time it takes to correctly count at the end of the day. That can easily take an hour even for small shops. If you go card only, you can just lock the door after the last customer and leave. Accounting for revenues and discrepancies (which always happen) correctly is a huge hidden cost.

Banks charge to deposit cash in business accounts



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