Feed into MPs' inquiry - share your views on society becoming more 'cashless' with Coronavirus

barginpleasure

My issue is that it is controlled by private companies. I've no option but to be paid by baccs and then hope the bank can pay their IOU. 
Cards have no 'decline cookies' option.
My attitude towards cash has changed but so has my life style. I'd go out with cash, when I'd spent all my beer tokens it was time to go home, then they started putting cash machine in clubs, and it was 2.99 to take out my cash. If I go for a meal I pay card but drinks I'm still cash, a sandwich I'm cash.
I collect charity tins cash, the best collections are pound shops cafe and butchers. The worst are dentists hair dresser and it is obvious the card/cash use. 

MovingForwards

• What are your attitudes to cash? 

I prefer cash, it's easier to overspend when using a card, a bit extra here and there doesn't matter because of paying by plastic (debit or credit card), using cash means sticking to a strict budget, working out what is spent while shopping and not borrowing from the next lot of shopping.

• Have your attitudes to cash changed over the last 10 years? If so, why?

Yes, had it not been for cash and sticking to cash budgets I would still be in debt and without the small amount of savings I have and build up each month. 
For a lot of people, learning to budget involves learning to manage cash, seeing how much money is available for one week and carefully planning how it will be used. Take that option away and many more people will remain in debt as they do not see plastic as being money, whereas actual cash, seeing that running out is a wake-up call and allows the mental shift to take place. This is evidenced on the debt and diary boards with people referring to cash envelopes for bills / food or taking a set amount of money out each week and sticking to their budget, compared to when they go out with plastic and panicking they have spent what little money they have in one shopping trip. This affects people of all ages, backgrounds and incomes.

It's easy to sit at home, read and think "well, just write a list", "it's your own fault for spending", "I don't understand how you have no self-control", "if you add things up when spending cash, why don't you do it when using card" the list goes on, but it takes time to change, it's a whole mindset shift, awareness of spending money doesn't always happen and some people do need to only use cash for the rest of their lives to manage their finances.

Often there are posts about having bank accounts frozen for weeks at a time, while an investigation is done because of a transfer from someone else eg sold a car or other item and the buyer transfers the money, off the back of this an AML flag is raised, or worse the buyer raises a dispute, leaving people without access to the rest of their money. Potentially innocent people are unable to buy food, pay bills, commute to work and do not have cash with which to do so. 

• Have your attitudes to cash changed in light of Coronavirus? If so, why?

No, cash still has its place in society for the reasons I've said above. I also will not use any shop where it says cash only as that's excluding people of all backgrounds.

• Have you been negatively affected by society becoming more ‘cashless’? If so, why?

For now, I'm doing ok, as I've said there are shops which do take cash. These are the ones who are continuing to help those who live in a cash society, rather than plastic society.

This isn't just about me, it's about my neighbours, my friends and excluding a part of society who rely on cash to budget, to get the best of every penny they have. Not just for those on low incomes, but everyone.

MattMattMattUK

I will add a few points that are related financially, but are not directly about cash that it would be good for the select committee to look at, based on some of the above posts.

Schools need to educate pupils on financial matters as it appears many parents can not be relied upon to do so. This should cover the basics, such as how to create a budget, through to slightly more complicated things such as compound interest in debts, mortgages and pensions. Modern technology makes budgeting very easy, from a spreadsheet which is totally free, through to websites, apps and paid products. The idea that someone is unable to budget unless they have a wedge of cash and they will stop spending when it runs out does not make sense, they can monitor their bank account online incredibly easily, keep track of their spending on a spreadsheet to make sure the actual is equal to or less than the budget line.

Resistance to change seems to be a bigger barrier than anything, with some people taking the attitude that it is the way they have always done it and will not consider alternatives or more efficient methods because those are different.

Fear also seems to play a part for some, they are scared of being "cut off" from access to funds, this is something where education could play a part, explaining the safety nets which are in place.

The final obvious factor is that a minority fear that card will cost more to use, which is not born out. Yes there is a cost with processing card transactions but it is very low, typically ranging from around 0.7% for large chains, to 1.2-1.5% for SMEs and 2.5% for very small, occasional users. However what customers have not generally seen is the cost of cash handling both in terms of fees from the bank and time taken in preparing and delivering cash deposits, change fees from banks etc. which are roughly in line with the costs for cards. Overall the cost of using cards is becoming cheaper and the cost of cash more expensive.

One final point is that banking in the UK is not as transparent as in most other countries. There is a cost associated with ATM, with processing transactions etc. In most other countries you are charged per transaction, so the bank would charge you say €0.50-1.00 per withdrawal or deposit, €0.02-0.20 per digital transaction, a monthly or annual fee, a fee for a paper statement etc. Where as in the UK banking tends to be nominally "free", but costs are born with things like higher overdraft charges and other fees which tend to fall directly onto those who screw up, rather than on the direct cost of servicing the transaction. Also in most of the rest of Europe overdrafts are a rarity and in most of Northern Europe it is still normal to save up for things and then buy them, rather than buying them on credit, which is overall much harder to obtain (although there are some oddities in the data that do not reflect buying patterns etc. and much of the available data does not account for net worth and debt, which is also very important eg. if you have £200k of debt, but a net worth of £500k that is a far better position than £200k of debt but a negative net worth).

Jeremy535897

If we are obliged to use cards, it won't be long before we are all paying a fee for every transaction.

MattMattMattUK

Jeremy535897 said:

If we are obliged to use cards, it won't be long before we are all paying a fee for every transaction.

In many countries they already do pay a defined transaction fee and the reality is that we already do in the UK, the costs are just hidden rather than transparent. 

Jeremy535897

MattMattMattUK said:

Jeremy535897 said:

If we are obliged to use cards, it won't be long before we are all paying a fee for every transaction.

In many countries they already do pay a defined transaction fee and the reality is that we already do in the UK, the costs are just hidden rather than transparent. 

If you never owe the bank anything, the only place they can recover the costs is in charges to borrowers. If a transaction charge is introduced, you can bet their charges won't go down.

Takmon

MoneySeeker1 said:

There's pros and cons to the Black Economy. I don't think I've ever earned any money in it personally in my life - but I admit to sometimes paying people that way and I do it because that's what I can afford (as a single/low income person). Right now - I do know it's how some of my friendship circle are managing to survive (yep..."survive" - no high-rollin' living).

What we need is a clamp down on the wealthy - like higher rates of tax and, as we have a National Minimum Wage - there should also be a National Maximum Wage. If Lockdown can be/is being imposed internationally - that does rather beg the question as to why we don't have a National Maximum Wage - rather than people (I wonder who that might be? Hmm..) arguing "Oh the rich will just flee the country". Well they can't flee Lockdown (though much more protected from it than we are) - so one wonders what would happen if there was the political will to ensure they couldn't flee a Maximum Wage and decent tax rates for higher-paid either.

Personally - I'm using cash as much as I ever did and I simply don't want the hassle of having to keep track and check on loads of cashless payments. I'm keeping smaller payments as "When there's money in my purse - I know I've got some to spend. When there isn't money in my purse - I've spent up to capacity" and it's very easy to see what I've got left for minor spending purposes (just open my purse and count it - job done in a couple of minutes).

Also - as a perfectly honest person and not earning in the Black Economy at all - I still don't see why every little bit of money I spent should be available for some faceless someone somewhere to be able to check where I was and at what time - by monitoring my spending. If I want to spend a whole day out buying myself a coffee in one place, a lunch in another place and a newspaper in another - that's up to me and I don't expect to be capable of being "tracked" whilst doing so and can't be if I've paid cash for everything. I'm entitled to my privacy - without anyone telling themselves they have the right to invade that - they don't full stop.

Sounds like your jealous of people who have a good income and want to punish those people with higher taxes when they already pay more than their fair share. If your on a low income then you need to go out and earn it and that doesn't justify you paying people in cash so they can avoid paying tax. You very hypocritical by wanting wealthy people to pay more tax but think it's alright for poor people like you to illegally avoid it. 

Takmon

MoneySeeker1 said:

Not to forget that many of us don't/won't do online banking. I'm not elderly - but I'm one of them for instance.

Right now - if a nearby friend found she had to put herself under house arrest (ie "isolate") because she suspected she had Covid - that's not a problem, as I'd do her shopping for her during that (and have told her to ensure she has cash in in case - so that she could pay me for it).

In return - if I were the one that had to put myself under house arrest - then someone else would have to do my shopping for me (I've got several possible choices about who/how) and I'd need cash on me to pay them.

It's not possible to just do a bank transfer if one doesn't do online banking.

I've found a suitable-for-me online supermarket if I needed it and there's always Amazon - but that doesn't answer the question of getting greengrocery, the weekly tv magazine, the local newspaper and cash would be necessary for them.

You can do a bank transfer using telephone banking so there is no need to do online banking. But it is silly of you to refuse to use it when it's far easier in situations like you described and far easier to keep track of your spending.

jon81uk

Jeremy535897 said:

If we are obliged to use cards, it won't be long before we are all paying a fee for every transaction.

EU law means retailers can't pass the fees on.

But for the retailer it can often be more expensive to get the insurances to cover cash and to pay the cash handling fee with their bank. Many places prefer not taking cash as there it is cheaper for them and less to go missing or get stolen.

Jeremy535897

jon81uk said:

Jeremy535897 said:

If we are obliged to use cards, it won't be long before we are all paying a fee for every transaction.

EU law means retailers can't pass the fees on.

But for the retailer it can often be more expensive to get the insurances to cover cash and to pay the cash handling fee with their bank. Many places prefer not taking cash as there it is cheaper for them and less to go missing or get stolen.

EU law won't matter soon.