Friday, 18 March 2011

Cash or Card...

Being brought up with a piggy bank, I always used to have cash with me.

When I turned 15, I got my first KeyCard and have never gone back.

In my purse (oh yeah, I am a guy with a purse), I carry an American Express, two Visa cards, a MasterCard, an Access card and, finally, around my next I wear a PayPass enabled MasterCard.

To me, cash will always have a place in society, but it's place is progressively getting less and less significant. I send money to people through my iPhone. Has worked wonders paying "rent" to Mom. I then also have a record of how much I sent, when I sent it and when the payment was accepted.

My bank statement to me is like a diary. I know where I have been, when I was there. I have found missing emails and documents by being able to know when I paid for something.

PayPass has been a blessing to me, I have my PayPass enabled card in a RFID blocking case, on a lanyard around my neck. It is much more convenient for me to squeeze two tabs together and tap my card as opposed to getting my purse out, finding the correct change and handing it to the operator. Some may call it lazy, I call it quick. Customers are wanting faster service, I believe that using card for the majority of purchases, payment times will be shortened and there is less chance of losing your cash.

I work at a supermarket chain as a register operator and occasionally supervisor. It would make things so much easier and quicker if we had cashless checkouts. No drawers to count. No investigations on drawers that are running low on cash. Much more convenient.

Customers have been educated and the majority of people have changed from old style cheques to newer payment cards. It's only a matter of time until customers are educated that you can transfer money electronically, you don't actually have to hand cash over to someone...


  1. I agree it's only a matter of time and education! Considering the amount of hassle that cash-handling causes in shops, it's amazing that it doesn't attract a surcharge (and in fact stupid that shops have to pay a *fee* to CC operators for the "privilege" of accepting credit as payment - this was even more stupid back in the days of manual credit transactions when the chances of accepting a stolen card for payment were far higher).

    But on the other hand I think they get a small commission on accepting EFTPOS, so that's probably the only reason they don't surcharge for cash. Kinda makes the whole cash business laughable (as in the Good Guys' sales pitch, which is obviously just a marketing ploy).

  2. I know some supermarkets get 1% of the cash out value back from the bank and 2% if the cash out is done without a sale.

    The Good Guys "pay less pay cash" is crap. It should simply be "pay less and pay by any bethod except our in house high interest scheme"

  3. I think you will find that most retailers pay the banks a commission to use EFTPOS or C/C facilities.
    This varies between retailers depending on risk and/or turnover.
    This can be as low as .8% or as high as 5%.
    Retailers of jewellery and electronics would pay a higher amount whereas restaurants would be in the lower categories

  4. Anonymous, Maybe for smaller businesses. But I KNOW supermarkets get paid by the bank to provide cash out.

  5. Shan...guys that carry purses are hot! hehehehe

  6. Yeah, I think the cash out is the difference, supermarkets being paid to be "pseudo ATMs". And yes, they pay to the bank when it's credit. They're called Merchant Fees, because (originally, anyway) banks felt they were providing a fancy service to those shops accepting the trusty Diner's Club card. Here, have our dodgy service, pay us for the service, oh and YOU the retailer can also have the risk. ;)

    ALDI supermarkets in Australia (at the very least) charge a 1% surcharge on credit card purchases, to offset the merchant fee.