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People forget that cash transactions also have a cost. It’s mostly on the risk of keeping and transporting cash, and the cost associated to mitigate those risk
by iabacu 8y ago
People forget that cash transactions also have a cost.
It’s mostly on the risk of keeping and transporting cash, and the cost associated to mitigate those risks.
Small shops are usually more willing to take the risk to avoid fees.
- edge17 8y agoI don't think most people feel they are in mortal danger for carrying around small sums of cash
- ArtDev 8y agoSmall businesses not customers.
- Entalpi 8y agoIn Sweden the cost of handling cash is forcing small shops to go card only. Even banks thesedays have cash-free offices.
- dontbenebby 8y agoAre there a lot of violent robberies in Sweden? I'd think in a society with less guns people would be more wary of robbing. The clerk is separated by a counter and may have a bat or simply hit the panic button before you can get on them, leaving little time to escape...
- AnssiH 8y agoAssuming Sweden is similar to Finland, I think the main point is not avoiding robberies, but just to save money. Here, visits to bank branches have been in decline for decades now, especially for cash services, so it makes sense for the banks to reduce the amount of locations that offer those services to save money. In 2018 there were 854 bank branches in Finland, compared to 1627 in 2007 and 3600 in 1985. Population is 5.5M. This also has the effect of increasing cash handling costs to businesses if they have to get cash services from a bank branch that is far away. Sources (Finnish): https://www.finanssivalvonta.fi/kuluttajansuoja/kysymyksia-ja-vastauksia/pankkipalvelut/peruspankkipalvelut/selvitys-peruspankkipalveluiden-saatavuudesta-ja-hinnoittelusta-2018/ https://www.finanssivalvonta.fi/kuluttajansuoja/kysymyksia-j... https://www.savonsanomat.fi/kotimaa/Suomessa-pian-alle-tuhat-pankkikonttoria-Fiva-Alaraja-alkaa-tulla-vastaan/1039549 https://www.savonsanomat.fi/kotimaa/Suomessa-pian-alle-tuhat... https://www.kauppalehti.fi/uutiset/pankkien-konttorit-katoavat/6b102a9e-f5b8-34eb-a164-a7a1bcb8f565 https://www.kauppalehti.fi/uutiset/pankkien-konttorit-katoav...
- dontbenebby 8y agoThanks for this. I did not think about distance as a cost factor.
- close04 8y agoThe alternative to cash is not necessarily credit. It can also be debit. Which means I don’t have to line Visa’s or MC’s pockets for it. My bank is already getting its cut for offering me a form of electronic cheque. So the fact that cash incurs a cost (it does, especially for the merchant) is not the scarecrow argument that would justify Visa or MC boosting fees or even using a credit card.