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> Cash is a government-supplied taxpayer-supported service supplied free of charge for merchants and customers Cash ain't free! Sure, I give you the cash, now
by Nursie 4y ago
> Cash is a government-supplied taxpayer-supported service supplied free of charge for merchants and customers
Cash ain't free!
Sure, I give you the cash, now you have the cash. But you don't want a heap of singles in the back room, you want money in the bank.
Firstly, you need to keep that cash securely, which has a cost. Then, you need staff to reconcile your takings with your figures for the day, which is a cost. Then it needs (secure) transport to the bank (cost) and the bank may charge you fees for cash handling.
Sure, for individuals who sell things infrequently, it's fine, but for a business there are significant costs. This is why (for example) in the late 90s and early 2ks in the UK, large businesses pushed pretty hard for the 'cashback' feature on debit transactions, so they could offload some of it back to the consumer!
This is almost always missed in this debate. Credit cards are evil because they have fees attached and I, as a pure, innocent cash user have to pay the same price! Scandal!
But you may actually be costing the business more, especially in places where such fees are capped. This is part of the reason why we see card-only retailers popping up in some countries now.