Cash

[roverstillidie91]

Should we all go cash as much as possible instead of paying on card?

Interesting with the IT issues recently where the capability to pay by card wasn't there so I was curious if anyone had recently changed from using card to cash?

This is a good analogy.

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, it will still remain a £50 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.

BUT

IF I go to a restaurant and pay digitally via Card,

- the bank fees for my payment transaction charged to the seller are 3%, so around £1.50

( and so will be the fee of £1.50 for each further payment transaction )

-for the owner re laundry or
- payments of the owner of the laundry shop,
- or payments of the barber etc.....

Therefore, 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 of the digital transactions and fees!

Use it or lose it folks…

Once it’s gone we won’t get it back!

Cash is king! #cashisking

[IDM]

Good luck buying a house with that philosophy.!!

Do you get paid in cash too.??

[ravenrover]

Good luck getting somewhere to accept a £50 note

[Nudga]

Good luck getting somewhere to accept a £50 note

Not had a problem before with them. 

As above in the OP, if someone pays me £2,000 in cash, I can pay my suppliers in cash, fill my van up in cash and pay my wages (or hand over to the missus)

It hasn't cost me anything extra. But if I put it in the bank, it costs me so much for every one pound I put in. It still costs me if it's a bank transfer.
Plus I pay monthly bank charges just for the privilege of having a bank account.

Last week, a number of suppliers card machines were out of action, if I hadn't have had a good amount of cash on me I wouldn't have been able to work and complete the jobs.

There's a place for both cash and invisible money.

[ravenrover]

Do you not inflate your prices to take account of card charges?

[Dagenham Rover]

Good luck getting somewhere to accept a £50 note

Not had a problem before with them. 

As above in the OP, if someone pays me £2,000 in cash, I can pay my suppliers in cash, fill my van up in cash and pay my wages (or hand over to the missus)

It hasn't cost me anything extra. But if I put it in the bank, it costs me so much for every one pound I put in. It still costs me if it's a bank transfer.
Plus I pay monthly bank charges just for the privilege of having a bank account.

Last week, a number of suppliers card machines were out of action, if I hadn't have had a good amount of cash on me I wouldn't have been able to work and complete the jobs.

There's a place for both cash and invisible money.

Exactly.

[Nudga]

Do you not inflate your prices to take account of card charges?

I don't take card payments as that's another cost.

Maybe I should put an extra charge on bank transfer payments though?

[big fat yorkshire pudding]

Do you not inflate your prices to take account of card charges?

I don't take card payments as that's another cost.

Maybe I should put an extra charge on bank transfer payments though?

Might want to check the legalities of that.....

[BillyStubbsTears]

This is an old chestnut that rears its head regularly.

The fundamental point is that banks play an absolutely critical role in capitalism. They act as a means of moving money from surplus holders to those requiring credit. In other words, from people who have more money than they can use (savers) to ones who don't have enough to buy the house/car/factory/machinery they need (borrowers). Without the role of banks in matching up savers and borrowers, capitalism falls apart and we are all very much poorer.

As a spin off from this central role of banks, they are also a highly efficient way of transferring money from the bank accounts of spenders to those of sellers.

If you accept that banks have to exist, they have to be paid for.

The credit card fee that this chestnut focuses on is one way of paying that cost. It's explicit because the bank charges every seller for every transaction, so it's a clear and obvious one.

But if we all lived by cash, there would still be bank costs associated with providing the cash to buyers, and safely storing the cash of sellers when they deposit it (unless all sellers keep a bag of cash under one pillow and a shotgun under the other). Those coats also have to be paid for. They are levied either through fees on business current accounts, or less transparent ways, like paying less interest on savings.

The point is, if you use banks, they have to be paid for. Whether they charge too much and should be controlled by Govt is another issue, but it doesn't change the fact that bank services aren't free. Whether credit card based or cash based.

PS: 30 transactions at 3% cost reduces £50 to £20, not to £5.

[Colemans Left Hook]

Good luck buying a house with that philosophy.!!

Do you get paid in cash too.??

Strange you should say that because about 40 years ago someone who lived in Manor House (near the Reservoir) which is close to  Stamford Hill Hackney had a Frummer knock on the door with a bag full of money who wanted to buy the large house for cash   - that's the way they worked and probably still do ???

it's a funny old world !!

[roverstillidie91]

Good luck buying a house with that philosophy.!!

Do you get paid in cash too.??

I said as much as possible in the initial message it is night on impossible to do everything in cash.

In regards to small businesses we use they incur high charges for card use which is a reason why I've done it mainly.

And we don't want a CBDC proposed by the WEF either.

[big fat yorkshire pudding]

Good luck buying a house with that philosophy.!!

Do you get paid in cash too.??

I said as much as possible in the initial message it is night on impossible to do everything in cash.

In regards to small businesses we use they incur high charges for card use which is a reason why I've done it mainly.

And we don't want a CBDC proposed by the WEF either.

It may make sense for some very small businesses.  However, there is also the cost of handling cash, time in cashing up or cost of cash collection, risk of incorrect accounting, missing or stolen cash, fake cash and VAT fraud.  The case for cash isn't all that compelling, it should be available.  I would like more agreement to cut card fees for small businesses, actually tiering up a bit for size of business.

[Mike_F]

A very sensible summation there, Pud. Cash and cards have their pros and cons. Cash is becoming less frequently used for purposes of convenience but still has a part to play.

[Glyn_Wigley]

- 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, it will still remain a £50 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.

What world do you live in where no business ever banks it's takings?

[TheDonnyPop]

From my experience there seems to be a trend between Cash is King shouters, Brexit shouters and Covid conspirancy shouters

[ravenrover]

My Plumber refuses to take cash as it costs him to bank it, always sends an Invoice for Bank Transfer

[Mike_F]

From my experience there seems to be a trend between Cash is King shouters, Brexit shouters and Covid conspirancy shouters

They all converge at "Freeman on the land."

[rich1471]

I have a Monzo account much easier to send and receive money , My son spends a lot of time in Sweden and says not many shops take cash.