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British shoppers not using cash



The British Retail Consortium (BRC) has released figures indicating that the 14% decline in cash use is due to contactless cards and online sales.
The survey also showed that banks still levy ridiculously high charges for the use of cards. The UK Cards Association stated that the charges were good value for money. The BRC stated that cash was used for 53% of transactions during 2013, while debit cards accounted for 32%. Based on value of transactions, cards made up 50% of the transactions. However, the average value of purchases by card has declined.

The use of cash declining by 14% is a milestone in the sphere of digital economy. The average costs to retailers for processing a charge or credit card payment has increased by 18% during the past five years, to reach 41 pence. It costs around 8.8p to process debit card payments, which is an increase of 4% for the same period, BBC says.

Disappointment has been shown about the increased cost of accepting debit and credit cards. However, by paying these fees, retailers are offered fraud protection. The European Union is getting close to the approval of a plan to cap the amount banks are able to charge retailers for card payment processing.


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