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Cash payments on the increase

Rumours of cash's demise have been greatly exaggerated...

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On my way into AccountingWEB towers this morning I came across a piece of research from prison practitioners G4S that found cash is still by far the most widely used form of payment in all regions of the world, and cash in circulation is growing.

People have been predicting the downfall of cash since the cheque (kids, ask your parents), but paper and coins continue to stick around. Are you finding your clients or business using less cash and moving to alternative methods of payment, or is change hard to come by? (sorry)

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10th May 2018 12:51

Cash isn't going away any time soon.

Still the most convenient method of paying for small purchases.

Lots of places have a minimum spend for card transactions. How can you buy that penny bubbly you need ?

How can you give your grand-daughter a quid to spend ? What will she do ? Use the card reader in her dolls house ?

What happens when the telephone cable gets stolen ? (Happened to the village were I used to live a few years ago.) No internet, no phone - so the businesses have to shut up shop while it's repaired, do they ? Do people die of starvation because they can't use their cards to buy food ?

Let's get real - cash will, if nothing else, always be the back-up for when technology fails.

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10th May 2018 13:25

All of my day to day spending is paid for by cash.
Nobody knows what I buy/eat/drink.

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10th May 2018 14:00

I only ever use cash if I need to park somewhere where they don't have pay by mobile technology.

I either tap my phone to pay or slide my card into the reader.

Suits me well

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to Manchester_man
14th May 2018 08:57

Snap. The only time I get cash out is twice fortnightly it o pay either the gardener or for an Indian takeaway (all the other takeaways take card, can’t believe they still don’t. Th Chinese even have a mobile card reader for deliveries!).

In fact, reading this I’ve realised that I left my wallet at home. Never mind, still have my ever-present iPhone w/ ApplePay.

There seems to be a lot of people on here worried about the government threat conspiracy... maybe it’s a generation thing ...

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10th May 2018 14:01

the question is who are these 'people'....they wouldn't be the owners of tech companies by any chance....or governments who want to have the brother eye on you or indeed bit retailers who want your spending habits...

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By Mr_awol
10th May 2018 15:33

Many people will point to Denmark as an example of a cashless society (or prediction thereof). It's a good point. 16% of the value (24% of the volume) of POS transactions are, apparently, cash.

Cash usage will continue to decline. The only time I use cash really is if I'm going to the pub or, sometimes, if I'm eating out with friends and plan to split the bill (I cringe anytime anyone in a restaurant asks to pay part of the bill by card but am happy to chuck a few notes in the middle).

One barrier to increased card payments was when it used to cost £19.99 a month to rent a terminal - many businesses wouldn't take this out for the 'occasional' card payment. Now we have several companies willing to flog you a cheap reader for c£20 and take a modest 1.75%. No need for a phone line as it works off your phone/tablet/etc so it's completely portable as well as convenient and much cheaper for low users.

Cash will always be there for backup sure, I reckon its use will decline with the increased use of more convenient methods.

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to Mr_awol
10th May 2018 15:48

Mr_awol wrote:
No need for a phone line as it works off your phone/tablet/etc .....

If there's a signal.

Try using your fancy iPad in Swaledale.

It's only a couple of months ago that I was compelled to pay cash no more than six miles from the metropolis that is Ponte Carlo because the card machine didn't work.

I'm certainly expecting that my executors will still have the option - which they may or may not take - of paying for my funeral in cash.

And, of course, none of these cards are legal tender. But that's another story.

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By Dib
to lionofludesch
10th May 2018 17:15

"Ponte Carlo" - haven't heard that for a while. :o)

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to Dib
10th May 2018 18:47

Near Cas Vegas, Feverley Hills, LA (Low Ackworth) and the Big Apple (Bramley).

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By Mr_awol
to lionofludesch
11th May 2018 12:10

lionofludesch wrote:

Mr_awol wrote: No need for a phone line as it works off your phone/tablet/etc .....

If there's a signal.

Try using your fancy iPad in Swaledale.

OK, I should have specified that I was talking about developed countries. I'm sure there are few remaining areas of the UK where you cannot get a signal from one network or another, and most of the ones that you cant, you probably wouldn't want to open a shop at.

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to Mr_awol
11th May 2018 09:52

Mr_awol wrote:

I cringe anytime anyone in a restaurant asks to pay part of the bill by card but am happy to chuck a few notes in the middle.


Why? The restaurant is probably much happier to take payment by card than cash, as it's far easier to manage and it's often cheaper than card processing fees (if you take into account the time and cost taken to count and secure the cash, plus the charge that the bank levies to deposit it). And it makes no difference to the restaurant whether payment is on one card or split across a few cards, as the charge is a percentage, not a fixed fee per transaction.
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By Mr_awol
to charliecarne
11th May 2018 12:03

charliecarne wrote:

Mr_awol wrote:

I cringe anytime anyone in a restaurant asks to pay part of the bill by card but am happy to chuck a few notes in the middle.

Why? The restaurant is probably much happier to take payment by card than cash, as it's far easier to manage and it's often cheaper than card processing fees (if you take into account the time and cost taken to count and secure the cash, plus the charge that the bank levies to deposit it). And it makes no difference to the restaurant whether payment is on one card or split across a few cards, as the charge is a percentage, not a fixed fee per transaction.

I don't know. I suppose it's because in my experience the ones who tend to do it are the ones who want the menu back so that they can work out how much 'their' share is.

When eating with family or very close friends i'll normally just pay the bill. Or one of my fellow diners will, and i'll get it next time. If i'm in a large group, or the above doesn't apply for any reason, then i'll chuck in my portion of the bill on a percentage basis. We might tweak it so that someone pays less if they aren't drinking and the others all are.

Worst thing ive seen (and its happened twice, I think the same people who were friends of friends) was a bill for (say) £350 between ten of us, the first eight people chucked £40 each in the middle, to include a small tip, and I later find out that the final couple took the cash up to the desk, handed it over, and put the remaining £30 on their card(!)

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to Mr_awol
14th May 2018 09:01

Mr_awol wrote:

Worst thing ive seen (and its happened twice, I think the same people who were friends of friends) was a bill for (say) £350 between ten of us, the first eight people chucked £40 each in the middle, to include a small tip, and I later find out that the final couple took the cash up to the desk, handed it over, and put the remaining £30 on their card(!)

That’s what happens if you have Scottish friends (or those from Yorkshire, which may as well be Scotland).

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By DJKL
to atleastisoundknowledgable...
14th May 2018 10:19

How to make friends and influence people; subtle as a flying mallet.

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to DJKL
19th May 2018 08:38

DJKL wrote:

How to make friends and influence people; subtle as a flying mallet.

Clearly poorly judged - I’d not add GSOH to my LinkedIn profile.

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to atleastisoundknowledgable...
19th May 2018 08:27

Lol Really you can believe that if you want but it is not actually true

https://www.independent.co.uk/life-style/glasgow-uk-most-generous-city-t...

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to atleastisoundknowledgable...
19th May 2018 09:04

atleastisoundknowledgable... wrote:

That’s what happens if you have Scottish friends (or those from Yorkshire, which may as well be Scotland).

Personally, I like to promote the idea that I'm not easily parted from money.

The less I spend, the less I need to work - that's my philosophy.

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to Mr_awol
17th May 2018 15:13

So your problem is not related to paying by card vs cash, but is with splitting the bill. My point is that the restaurant will normally prefer to take cards (no matter how many are used on one bill) unless they use cash to hide their takings or they're Luddites.

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to charliecarne
19th May 2018 08:30

Yeah they prefer to get cards so they can avoid giving their staff the tips. Always pay meals by cash.

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to sarah douglas
19th May 2018 08:36

sarah douglas wrote:

Yeah they prefer to get cards so they can avoid giving their staff the tips. Always pay meals by cash.

Or even better, pay the bill by card, leave cash for the tip. Isn’t that what most people do?

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to atleastisoundknowledgable...
19th May 2018 08:50

If I am on a night out meal and drinks I bring a budget until it runs out. We all just put the cash in the middle for a meal or a kitty for drinks.

So much easier than flapping about with cards. I agree with awol on the type that pulls out the card.

On on a fun note how would Munich beer festival work if the girls had machines. It would not. So many reasons why cash is better.

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to atleastisoundknowledgable...
19th May 2018 09:00

atleastisoundknowledgable... wrote:

Or even better, pay the bill by card, leave cash for the tip. Isn’t that what most people do?

Oh ?

So we still need cash, then.

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By tom123
10th May 2018 16:25

In a previous life I used to work for a manufacturer of cash in transit vehicles to G4S.

They will be pleased that cash is still in demand..

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to tom123
10th May 2018 16:32

You'd've thought they've want something more secure than a Transit.

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By mrme89
to lionofludesch
11th May 2018 12:06

They used to have a Mercedes Sprinter, but he ran off with the money.

I'll get my coat...

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11th May 2018 14:49

I work as a volunteer on a charity tea bar. We are getting increasing requests by customers if they can pay for their 80p drink or nibble with a card. Since the manager has difficulty with operating a mobile phone, and our margins are low, I think cash will reign for a while longer...

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By NH
14th May 2018 07:12

Lets face it, cash is a pain in the [***], the very nature of it means that you never spend it all, how much money have you lost over the years that has fallen down the back of a sofa, between the car seats or left in a pocket when you do the clothes wash, not to mention the risk of it being stolen and the fact that having cash in the system encourages criminal and fraudulent activity. Get rid of it I say!

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to NH
14th May 2018 08:05

NH wrote:
Get rid of it I say!

Great idea !

How ?

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to lionofludesch
14th May 2018 09:04

lionofludesch wrote:

NH wrote: Get rid of it I say!

Great idea !

How ?

Same way they got rid of paper £5 notes, round £1 coins and £/sh/d. Make it illegal in 6 months time - everyone will use digital money then (by which I mean card/ApplePay etc, not bitcoin).

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By DJKL
to atleastisoundknowledgable...
14th May 2018 10:27

Try putting digital money in the toe of a Christmas stocking along with a satsuma or clementine.

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By NH
to DJKL
14th May 2018 10:34

gift voucher?

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By DJKL
to NH
14th May 2018 10:52

Hardly traditional.

Every family likely has different Christmas customs, and the coin in question in the toe has certainly been devalued (I am now using a £2 one for my grown up children), but my father always received a coin in the toe of his stocking, my sisters and I received the same and now my children receive likewise ,with the hopeful expectation that if either has a family the tradition will prosper and continue.

You can also try weighting a curtain with a gift voucher/electronic payment, little pockets in the hems with old 1d coins used to be common to get them to hang correctly.

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to atleastisoundknowledgable...
18th May 2018 17:15

atleastisoundknowledgable... wrote:

Same way they got rid of paper £5 notes, round £1 coins and £/sh/d. Make it illegal in 6 months time - everyone will use digital money then (by which I mean card/ApplePay etc, not bitcoin).

Crazy idea. Seeing as cash seems to be the most popular way to pay.

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14th May 2018 10:30

Well I am happy to fit in with the 'get rid of cash' gang....but presume that if the payment facilities of said supplier break that they will sell for free.

A visit to costa just yesterday where their internet had broken to the extent they could only take cash shows just how brittle the push for electronic payments could be.

That said why don't they just get training on the 'old' style card machine as a back up....(that one that swipes a carbon print)….old it might be but as usual provides a reliability that the new tech doesn't!

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to justsotax
18th May 2018 17:18

justsotax wrote:

Well I am happy to fit in with the 'get rid of cash' gang....but presume that if the payment facilities of said supplier break that they will sell for free.

A visit to costa just yesterday where their internet had broken to the extent they could only take cash shows just how brittle the push for electronic payments could be.

Exactly. I told a similar tale earlier in the thread.

Technology's great until it fails.

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By tbk
17th May 2018 10:54

I volunteer on a bar at an arts centre and the older visitors are happy to pay by cash, younger ones expect to use a card.

At a business level I have one owner who finds it time-consuming to set up new suppliers on the bank account and will give the cheque book to someone in admin to write out the cheques which are then signed as the owner finds that faster.

For myself, card is convenient but cash is a far better method for budgeting - I can only spend what's in my purse and have to wait till the next (self-inflicted) 'payday' before I get any more.

Like all things in life all the options have their pros and cons, I hope we keep them all.

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17th May 2018 13:36

Pay cash. I've had my card copied twice.

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to Paul Cleverley
17th May 2018 15:20

But cash can be lost or stolen. If your card is lost or stolen, you can cancel it and the bank will compensate you for any fraudulent payments taken (harder now with chip and PIN, except for small contactless payments). I'd ditch cash tomorrow if I could!

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19th May 2018 08:42

Cash is here to stay. That is if you value you privacy.

The only reason the banks and big big companies what rid of cash is so they know your business and every move.

Cash is a way of teaching kids the value of money. Same as you go out with £1oo once spent you go home. Paying for drink and meals and night out on card is not a good idea.

As a women I would never ever go out without cash in my pocket for my own safety. I have been in restaurants we're machines are temporarily down. Taxi driver machine not working. Some very good local taxi services I use for work and play all the time take cash.

Long live cash and privacy

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to sarah douglas
21st May 2018 08:48

I was in Tesco on Saturday. Credit card wouldn't read. Had to pay cash.

Cash is King in more ways than one.

End of argument.

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