Adding a cash handling charge to any cash users would remove the incentive to use cash. In Europe and Canada chip and pin reduced the use of cash significantly.

Adding a cash handling charge to any cash users would remove the incentive to use cash. In Europe and Canada chip and pin reduced the use of cash significantly. Contactless and mobile payment options like Apple Pay is the next nail in the coffin. Merchant's like it (not have to transfer large sums of cash to the back, significantly reduced risk of fraud), Government's like it (easier to ensure that the correct tax is being paid on transactions) and Consumers like it (don't have to carry cash). The US is significantly behind in this area which is why credit cards getting cloned and used at physical stores is still an issue.