[Finance] Cash or card ?

[Shropshire Seagull]

My and my wife swop money around by using PayPal. This doesn’t cost us anything. Can businesses use this?

PS I have no idea how they make their money.

I'd suggest this does cost you. PayPal is convenient but you pay for that.

Try transferring in a tenner and see how much has actually been credited to you PayPal account. I predict it will be £9.71

They make their money on payments in not payments out.
#expensiveconvenience

 

[Herr Tubthumper]

I'd suggest this does cost you. PayPal is convenient but you pay for that.

Try transferring in a tenner and see how much has actually been credited to you PayPal account. I predict it will be £9.71

They make their money on payments in not payments out.
#expensiveconvenience

I’ll take a closer look but at first glance i recently sent a 100 euros and that seems to be what the recipient got.

 

[Flounce]

I'd suggest this does cost you. PayPal is convenient but you pay for that.

Try transferring in a tenner and see how much has actually been credited to you PayPal account. I predict it will be £9.71

They make their money on payments in not payments out.
#expensiveconvenience

I think if you tick something like friends and family on paying they get the full amount?

 

[Creaky]

I think if you tick something like friends and family on paying they get the full amount?

This, no charge on "friends and family" at either end.

Be aware though that scammers online will try to persuade you to make payment this way but if you do there is no buyer protection.

 

[Flounce]

This, no charge on "friends and family" at either end.

Be aware though that scammers online will try to persuade you to make payment this way but if you do there is no buyer protection.

I have only used it for people I trust and have past experience with.

 

[Lyndhurst 14]

In the new Netflix movie Leave the World Behind there is a cyber attack on the USA. As a result one of the characters who needs medicine for his son uses cash as Apple pay etc are down. I know this has never happened in the UK although there have been instances where ATMs have been knocked out temporarily. If we do become a completely cashless society sometime down the road where all transactions are digital a cyber attack could completely paralyse the system - what happens then - bartering or using any cash you still happen to have. I think that's why films like LTWB play on these very real fears - something like that could happen.

 

[Wozza]

Prefer cash.....can`t spend what you haven`t got.

The majority of UK consumer's non-cash transactions are debit payments, not on credit.

 

[Psychobilly freakout]

In the new Netflix movie Leave the World Behind there is a cyber attack on the USA. As a result one of the characters who needs medicine for his son uses cash as Apple pay etc are down. I know this has never happened in the UK although there have been instances where ATMs have been knocked out temporarily. If we do become a completely cashless society sometime down the road where all transactions are digital a cyber attack could completely paralyse the system - what happens then - bartering or using any cash you still happen to have. I think that's why films like LTWB play on these very real fears - something like that could happen.

Ah, and one of the reasons, I keep a little stash of cash hidden around the house.

 

[Diablo]

The majority of UK consumer's non-cash transactions are debit payments, not on credit.

Do debit cards only allow you to spend if you have money in account ?? I thought they normally let you overspend. Then start charging extortionate rate of interest.

 

[Tom Hark Preston Park]

Do debit cards only allow you to spend if you have money in account ?? I thought they normally let you overspend. Then start charging extortionate rate of interest.

Pretty sure it depends on what overdraft limit you have in place on your account

 

[Rdodge30]

As a retailer in a seasonal town the amount of cash we take is still quite considerable considering the absolute zero cash I witnessed when in London before Christmas. Sometimes our card payments are as low as 50% but usually a lot more although percentages may be misleading ..if on a quiet day we take £500 and £200 is cash but when busier we take £1000 but still the £200 cash makes me think it’s the same (local) people spending cash and the holiday makers are mainly on card.

When our cash machines are down and the old faithful “cash only” sign goes up on the door, there are always customers of the older generation who have cash OR are able to nip to the cashpoint. Many of the younger generation though are unable to purchase as they have neither cash nor card - just phones

 

[sydney]

My wife works in a small secondhand bookshop (ie; small business). Many of the books they sell are for around £2.50.

The administration fees for debit cards plus charges for the technology/kit to process them can end up taking up to 5% off the sale price - which in itself isn't all profit.

My local greengrocer (another small business) won't accept cards for totals under £5, as it is not worth it for them, as it reduces their margins too much.

finally someone with a brain ....if you make a purchase with a card either you or the vendor pays the card fee which is generally 1.5 % if i buy 3k worth of timber from my supplier and use credit thats $45.00 that goes to the credit provider for doing f*** all .......i'll keep using cash as long as possible , once it's gone we're f***ed.

 

[Rdodge30]

finally someone with a brain ....if you make a purchase with a card either you or the vendor pays the card fee which is generally 1.5 % if i buy 3k worth of timber from my supplier and use credit thats $45.00 that goes to the credit provider for doing f*** all .......i'll keep using cash as long as possible , once it's gone we're f***ed.

As a retailer I pay 0.2% on card purchases
If I bank cash I pay £9 fees per £1000
If I withdraw cash (change) I pay £9 per £1000

It’s cheaper to take card payments than bank money

Also whilst it’s easy for me to stroll up the road to the bank it’s not the same for all businesses… even BEFORE they started closing so many branches - many businesses would have to drive to bank their cash

 

[tedebear]

finally someone with a brain ....if you make a purchase with a card either you or the vendor pays the card fee which is generally 1.5 % if i buy 3k worth of timber from my supplier and use credit thats $45.00 that goes to the credit provider for doing f*** all .......i'll keep using cash as long as possible , once it's gone we're f***ed.

I think you need to look at who you are using!!!

 

[schmunk]

finally someone with a brain ....if you make a purchase with a card either you or the vendor pays the card fee which is generally 1.5 % if i buy 3k worth of timber from my supplier and use credit thats $45.00 that goes to the credit provider for doing f*** all .......i'll keep using cash as long as possible , once it's gone we're f***ed.

once again.....you show how out of touch with the modern world.....you are.........

 

[timbha]

As a retailer I pay 0.2% on card purchases
If I bank cash I pay £9 fees per £1000
If I withdraw cash (change) I pay £9 per £1000

It’s cheaper to take card payments than bank money

Also whilst it’s easy for me to stroll up the road to the bank it’s not the same for all businesses… even BEFORE they started closing so many branches - many businesses would have to drive to bank their cash

And with cash there’s a higher risk of theft, fraud, misappropriation, etc. cash has its place but only in the dark economy, bowls clubs, village fetes, tax dodgers and for people over 70

 

[Diablo]

And with cash there’s a higher risk of theft, fraud, misappropriation, etc. cash has its place but only in the dark economy, bowls clubs, village fetes, tax dodgers and for people over 70

More risk of fraud and theft surely with with cards, pin nos , computers etc. If someone nicks my £50 in cash, that is all he`ll get.
Nick your card and even without pin can do multiple £100s I believe.

 

[Rdodge30]

There are certainly negatives to the cashless society- everyone is losing a small percentage on every £20 card transaction until it is completely gone in percentages …. But if 50 people spend the same £20 note it’s still worth £20 at the end of it (unless one or more shopkeeper has banked it)

However, it’s extremely convenient from a trade point of view, at this point we are paying 100% of our bills/costs/wages via BACS payments and over 50% of our customers are paying by electronic payment.

Fighting against the cashless society is a job for King Canute

 

[Bodian]

I think you need to look at who you are using!!!

once again.....you show how out of touch with the modern world.....you are.........

?? - 1.5% looks about average.

Compare UK Merchant Account Fees | Expert Market 2022

We shed some light on the confusing world of card processing fees to help you find the cheapest merchant services provider for your business When it comes to prices, merchant account providers are about as transparent as an Oak tree. But don’t worry, Expert Market is here to make things ...

www.expertmarket.com

 

[Albion in the north]

?? - 1.5% looks about average.

Compare UK Merchant Account Fees | Expert Market 2022

We shed some light on the confusing world of card processing fees to help you find the cheapest merchant services provider for your business When it comes to prices, merchant account providers are about as transparent as an Oak tree. But don’t worry, Expert Market is here to make things ...

www.expertmarket.com

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I use Dojo and pay absolutely nothing like that amount. In reality, the monthly fee doesnt come from the service provider but is charged by whoever is processing the transaction, usually Barclaycard. How the service provider passes it on to the end user, the shop, is entirely down to them. Same goes for any transaction fee.
What I can say is that, you pay me in cash, then I go to the local market and pay them in cash and the merchant there uses another local shop, then those shops survive. And that is how I personally shop. I rarely go to a supermarket and always use local builders merchants etc. If everyone is forced to pay by card, all the little shops will struggle with the extra financial burden.
And as for the "cash is allowing the shops to be bent" narrative, Id love to be a roofer* or plumber* with the amount of cash they get paid and jobs done without traceable invoices that they get away with doing. (*Just used as an example and not from personal experience). In a local shop, you are not charged an hourly rate for using the assistants time, just a straight price for items you are buying making any "money laundering" very difficult to get away with.