Unlocking Savings: The Power of Cash for Small Businesses and Thrifty Consumers

Unlocking Savings: The Power of Cash for Small Businesses and Thrifty Consumers

In today's digital era, the often-overlooked significance of using cash is revealing itself. A recent discovery highlighted the hidden costs tied to card payments, leading us to delve into the growing plea from small businesses, urging customers to pay in cash. This shift not only helps local businesses save money but also provides a cost-effective solution for savvy consumers.

The Rising Costs for Small Businesses

Local businesses, crucial to our community fabric, grapple with the escalating costs of card transactions. Over 85% of transactions made in 2022 in the US were produced using contactless. Consequently, small businesses find themselves compelled to accept card, even for modest amounts, incurring substantial fees that threaten their already narrow profit margins.

The Card Fee Dilemma

Processing a card payment exacts a hefty toll on small businesses, with fees skyrocketing by 600% in the past nine years. Each card transaction involves four separate fees—merchant service charge, terminal charge, authorisation fee, and gateway fee—adding up to 2.5% of the transaction amount. This means even a seemingly small purchase, like a pint of milk, can significantly dent the store owner's revenue.

Benefits for Customers

Opting to pay with cash not only bolsters local businesses but also proves a prudent financial choice for consumers. While card payments offer convenience, the associated fees can accumulate, resulting in higher costs for goods and services. Choosing cash transactions enables customers to save money while actively contributing to the sustainability of local businesses.

Choosing to pay in cash not only injects money back into the pockets of local business owners but also fosters the vibrancy of our neighbourhoods. Let's recognise the broader impact of our payment choices and actively support local businesses by embracing the simplicity and cost-effectiveness of cash transactions. It's time to unlock the value of cash and ensure the ongoing success of the small businesses that enrich and define our communities.