Cash or Card
I have recently been seeing a LOT of shared articles online saying that using cash to pay for purchases and services is better for the merchant than using debt card transactions... These posts are usually linked to entire Facebook pages and websites stating as much.
This is incredibly frustrating to see as I do not believe this to be the case! Though it might have been at some point in the past.
These posts state that if I paid for a £50 meal in cash, that restaurant owner can then take that full £50 to the dry cleaners and pay for his dry cleaning bill. The dry cleaner can then take that full £50 to the shop and buy £50 worth of shopping and so on.
But if I paid by card, the card company would take a percentage of that transaction, which it would then do again to the restaurant owner when he paid for his dry cleaning and so on.
I believe what this post just seems to skip over is all the steps between taking cash and using it, like banking it, business tax and insurance for having cash on the premises (which would increase to cover the amount of cash held on the premises surely?)
You cannot just take £50 cash from someone as a business and not have to pay or declare anything??
I know there is a charge for card transactions(2.5% in some cases), but when you add all the costs and steps involved with actually handling cash, surely it at least balances out?
Add to that the fact that cash is not as safe as card transactions, for instance if someone steals £50 cash from me, they can use it wherever they like and it cannot be traced, which is why drug dealers and criminals tend to use cash rather than bank transfers??
But if someone stole my card, the first place they use it it is tracked, as well as every place they use it after that, but each time they use my card I get a notification on my phone saying I have spent money, at which point I freeze the card and report it as stolen, the bank and police would then have the exact time and location the card was used which would enable them the check CCTV footage of the thief. Even if they use the card online, nowadays most transactions above a certain amount require verification via your banking app, which unless they stole your phone and somehow managed to get your fingerprints, they would not be able to approve the purchase. And lets be honest, you can lose your card and not notice for a few hours (Or days in my case as I only use my watch for purchases nowadays), but if you lose your phone you will notice more quickly at which point you would also notice your card is gone, which is then a simple case of going to your bank and freezing the card.
I have searched this site and the web trying to find any articles that go into this in depth and have any kind of factual evidence to say one way or other, but I cannot find anything that looks into this topic... And I would really like to be able to confirm or deny these posts... But I cannot help but believe they are completely untrue.
Can you help?
★ ★ ★ Meet your Ambassadors
- All Categories
- 341.8K Banking & Borrowing
- 249.7K Reduce Debt & Boost Income
- 449.2K Spending & Discounts
- 234K Work, Benefits & Business
- 606.2K Mortgages, Homes & Bills
- 172.5K Life & Family
- 246.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.8K Discuss & Feedback
- 15.1K Coronavirus Support Boards