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A study by Steinbeis, funded by the German Central Bank, discovered that the transportation and production costs of cash are equivalent to around a fee of 0.2%
by kuschku 8y ago
A study by Steinbeis, funded by the German Central Bank, discovered that the transportation and production costs of cash are equivalent to around a fee of 0.2%
For comparison, the German EC card system has fees of 0.125%, and most credit cards had fees of around 2-3% (VISA, MasterCard) or even in some situations up to 7% (AMEX, certain goods).
This combined with credit cards banning users and merchants for sellibg goods based on their own discretion (see the trouble the Rossmann group had selling Cuban goods in their German stores) should explain by VISA and MasterCard have to be eradicated.
- Matt3o12_ 8y agoThank you, I had somewhat around .2% in mind but I wasn’t too sure. Obviously that depends a lot. For a small business (a one or two person shop), those fees can be essentially 0 because they can just bring it to the bank themselves. I an area with a lot of tourists, the cost can be a lot high due to a high amount of thieves. When I was in Amsterdam there were signs at tourist location to leave cash at the hotel and only use cards because of the high risk of theft. 2-3% fees for credit cards are common in the US if I remember correctly, but the EU has capped the fees to .3% for credit cards and .2% for debit cards. My point was just that cash isn’t free. It’s not that much more then a card.