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Cash - On the way out.


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From BBC website.

 

Millions 'will suffer without cash'

By Kevin PeacheyPersonal finance reporter
Pub notice announcing switch to card payments only

The UK risks "sleepwalking" into becoming a cashless society with millions of people disadvantaged as a result, a study has concluded.

Banknotes and coins are a necessity for eight million people, according to the Access to Cash study.

The report, authored by ex-financial ombudsman Natalie Ceeney, said a cash-free society would create problems for those in debt or living in rural areas.

Last year, debit cards overtook cash as the UK's most popular payment method.

Cash use has halved in the past 10 years, with notes and coins now handed over in three in every 10 transactions. Cash use is forecast to halve again in the next decade.

"As cash use continues to fall, we need to safeguard the use of cash for those who need it, and at the same time work hard to ensure that everyone can participate in this digital economy," Ms Ceeney said.

Her report was paid for by cash machine network operator Link, but was independent from it.

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No cash for a pint

Crown & Anchor pub, Brixton
Image captionVisitors to this pub can't pay for their drinks or food with cash

After yet another break-in at south London pub the Crown and Anchor, Arber Rozhaja decided enough was enough.

 
 

Burglars were after cash lying around after lock-up, but what if there was never any cash on site at all?

Mr Rozhaja, operations director at the pub's parent firm, London Village Inns, calculated the volume of cash transactions and was bowled over.

"Somewhere in the region of 10-13% of the total revenue would be cash and the rest was card," he says.

So in October, the Crown and Anchor went fully cashless.

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In some sectors, cash is still used frequently. Some 74% of people use cash to give to charity and window cleaners are paid with notes and coins in 85% of cases. 

More generally, there are various risks highlighted in the report from a cashless society. They include:

  • Struggles in rural communities where alternative ways of paying would be affected by poor broadband or mobile connectivity
  • Difficulties for some people with physical or mental health problems who find it hard to use digital services
  • Rising debt levels, owing to budgeting being easier with cash
  • Lost independence for those who use cash as a lifeline when in difficult or abusive relationships
  • Higher prices for those who are unable to benefit from online services or direct debits

Ron Delnevo, executive director for the European ATM Industry Association, said: "The UK public remain heavily committed to cash use and this must be respected by all payment market participants, however disappointing that might be for their narrow commercial interests."

UK Finance, which represents banks, said that a mix of different ways to pay was vital for consumers.

"Our own research shows that while cash usage is declining, it will still be the second most common payment method in 10 years' time," said Eric Leenders, from UK Finance. 

"Maintaining access to cash is vital to ensure no customer is left behind. From over-the-counter withdrawals through 11,500 Post Offices and cashback from retailers, to investment in ATMs and mobile bank branches to reach more rural communities, the finance industry is using a range of solutions."

 
 
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Whilst the article is slanted towards the effect on the poor, it is interesting to see that debit card use with touch screen only technology is more popular than cash.  In UK I use cash very little and use a credit card with the bill settled at the end of the month by a direct debit mandate.
 
 
The government, recently were pushing card use as against cash as a means to cut down on cash in hand jobs.
 
That said I very rarely use a card in Thailand except to get cash from an ATM.
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55 minutes ago, john luke said:

The government, recently were pushing card use as against cash as a means to cut down on cash in hand jobs.

The ulterior motive is actually that cash transactions are not traceable, so the government can't tax you as easily, and they can't keep track of your spending as readily.

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10 minutes ago, Rompho Ray said:

The ulterior motive is actually that cash transactions are not traceable, so the government can't tax you as easily, and they can't keep track of your spending as readily.

Yes - as you say.

 

If a trader does a cash in hand job for say £1000 on which he should charge VAT, HMRC miss out on £200 VAT plus 20% of whatever taxable profit the trader makes.  A sizeable amount.

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Saw a interesting documentary on the so called "cashless" society...

With a few good interrogations raised. Will try to find it back on Youtube.

No way to accept this trend.  

Banks and government of course love it.  No more run on the bank, no more massive withdrawing your REAL money. Banks goes down, you're fecked....

Already too much "digital" money in circulation.

Personally here in Bali I am 100% cash. In France CC card only used for over 50 / 70 euro.

 

 

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Seems the more the banks encourage cashless spending,the more your money/card security seems to be at risk.I prefer cash myself and will use it as much as possible on smaller purchases.Plus its easy to lose track of spending with a card and spend more than you think.

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Was in the Crown & Anchor, mentioned in the OP a couple of month back (excellent pint of Siren Breakfast Stout) and would agree with the owner that cashless makes a lot of sense in there.

Me and the other chap at the bar, where the oldest punters by a good 15 years (probably 20 in daylight 😁)  bar us two it was all card payments. The areas a bit mixed to say the least, I'd not want to be cashing up late at night in there.

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7 minutes ago, Ivan the terrible said:

On the plus side it stops lightfingered till staff

They find other ways.  Here in the US, the big scam is that you're allowed to get cash back when you pay for a debit card purchase, and they sneak a cash-back onto your bill when you aren't looking and pocket the dough.  No way for you to prove you didn't ask for the cash, and no way for you to prove you didn't get it.

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3 minutes ago, Rompho Ray said:

They find other ways.  Here in the US, the bit scam is that you're allowed to get cash back when you pay for a debit card purchase, and they sneak a cash-back onto your bill when you aren't looking and pocket the dough.  No way for you to prove you didn't ask for the cash, and no way for you to prove you didn't get it.

we have to sign by the cash back amount to say you recd it , well used to anyway I havent done it for a while 

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And when cash is gone, so too will free bank accounts, because you can bet the banks will start charging you to spend your own money and for every time you wave your card in front of the scanning machine.  At the moment, just the business pays when debit/credit cards are used.

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20 hours ago, john luke said:

Yes - as you say.

 

If a trader does a cash in hand job for say £1000 on which he should charge VAT, HMRC miss out on £200 VAT plus 20% of whatever taxable profit the trader makes.  A sizeable amount.

That's a lot of our back street asian friends buggered then . The printing company I work for print millions of take away menus every year ,mainly through asian customers .  Not only do they insist on cash ,avoiding VAT but they are bound not to declare their income also on the sizeable profit they make.

my company are to blame also . No doubt it won't be long before the asian guys will change their company name ,go bust or whatever and leave a healthy debt to my gaffer. Happened a few times in the past .

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The ulterior motive is actually that cash transactions are not traceable, so the government can't tax you as easily, and they can't keep track of your spending as readily.

Also a motive of the card companies. It’s so easy now to tap a card especially a credit card. Before you know it you’ve spent a few grand. With cash in your hand you know your budget. I have fallen into the trap last few months. Scratching my head where the hell did that lot go. All
Of a sudden you get a end of month bill and boom they got you. High interest rates and forever in debt. Iv seen it happen here more and more. Debit card from your account is nearly as dangerous. Tap tap tap and suddenly your account is empty. So tap the CC and fall into the trap.
I’m going back to basics. Cash is king.
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33 minutes ago, flog said:


Also a motive of the card companies. It’s so easy now to tap a card especially a credit card. Before you know it you’ve spent a few grand. With cash in your hand you know your budget. I have fallen into the trap last few months. Scratching my head where the hell did that lot go. All
Of a sudden you get a end of month bill and boom they got you. High interest rates and forever in debt. Iv seen it happen here more and more. Debit card from your account is nearly as dangerous. Tap tap tap and suddenly your account is empty. So tap the CC and fall into the trap.
I’m going back to basics. Cash is king.

This is a bit the problem with the "revolving" credit cards who seem to be the standard in Anglo Saxon place.

Mine HSBC HKG is like that, as long you pay back a minimum every month it keeps rolling.over the remaining outstanding balance. Well till the limit, but the feckers put it high to tempt you. Interests are ridiculously high, hence I nearly never "roll over" from month to month. I pay it off every month. Seldom use it nowadays as I have no HKG income.

With my S.G. card in France, no "roll over" option. I have to pay it completely every end of month. It is debited automatically from my account. If not enough on the account to pay, the card is blocked and you are in "incident de paiement" procedure, with all the fees that go with it.

Both are "Visa".  

A lot of people get fecked over by banks or financial institutions with "roll over" loans , or "renewable credit" cards..... The interest are digging you deeper in the hole every month. 

 

 

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Things are changing and I am not so sure for the better here in good old LOS. I get asked regulary when buying things here " Cuse me sir, you want to use True Merchant Select"?  WTF is that?  

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On 12/20/2018 at 9:18 AM, flog said:


Also a motive of the card companies. It’s so easy now to tap a card especially a credit card. Before you know it you’ve spent a few grand. With cash in your hand you know your budget. I have fallen into the trap last few months. Scratching my head where the hell did that lot go. All
Of a sudden you get a end of month bill and boom they got you. High interest rates and forever in debt. Iv seen it happen here more and more. Debit card from your account is nearly as dangerous. Tap tap tap and suddenly your account is empty. So tap the CC and fall into the trap.
I’m going back to basics. Cash is king.

I hardly ever used money when I lived in Qatar , I used to have a Uber account so that’s transport covered  to the bar , and I used my debit card while in the bar ,if I wanted food I used a good delivery app that I had an account with ..I had a few small denomination notes for tips ....

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1 hour ago, Yessongs said:

Things are changing and I am not so sure for the better here in good old LOS. I get asked regulary when buying things here " Cuse me sir, you want to use True Merchant Select"?  WTF is that?  

I was in the central the other day buying some Christmas goodies , my bill was 300 baht over the cash money I had ...but good old debt card saved the day ......some changes are for the better ....some of the old coffin dodgers need to be dragged kicking and screaming into the new millennia......

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