26/04/2024
As a small business we would like our customers to consider the value of using cash instead of card. We are willing to take card payments however we ask any transactions under £5 are paid in cash. We will use the post office where we can to withdraw cash.
- I have a £50 banknote in my pocket. Going to a shop and paying for shopping with it.
- The shop owner then uses the bill to pay for the supplies.
- The supplier then uses the bill to pay the delivery driver.
- The deliver driver will then use the bill for fuel.
After an unlimited number of payments, it will still remain a £50, which has fulfilled its purpose to everyone who used it for payment.
- But if I come to a shop and pay digitally - Card, and bank fees for my payment transaction charged to the seller are 3%, so around £1.50 and so will the fee £1.50 for each further payment transaction or owner, supplier or payments of the delivery driver or payments of the fuel etc.
Therefore, after 30 transactions, the initial £50 will remain only £5 and the remaining £45 became the property of the bank thanks to all digital transactions and fees
Thank you
