BRC: Cash comeback is good for business

An increasing number of people are using cash to purchase goods and services, according to the British Retail Consortium (BRC).

BRC spokesman Richard Dodd, says this latest trend will be welcome news to retailers who are paying thousands of pounds in credit card transaction fees.

"Whilst retailers are not able to charge different amounts for goods or services for customers depending on what payment they use the truth is it costs retailers less to have most transactions made with cash," he comments.

On average a cash transaction costs 2p to process, compared to a credit card payment which can cost businesses up to 34p.

Mr Dodd adds that the BRC is not attempting to convert all consumers to cash; however, he argues that the current "charging regime is wrong".

According to BRC figures, cash is now used in around 60 per cent of transactions - an increase of six per cent on last year.