Death of cash exaggerated, say retailers

Date: 27th March 2009

Retailers have dismissed the supposed death of cash as being "greatly exaggerated", claiming its remains the most effective payment for small firms.

According to the British Retail Consortium (BRC), smaller retailers - which often include sole traders and partnerships - are charged only 2p for the average cash transaction, compared to as much as 35p for a credit card purchases.

Stephen Robertson, director general of the BRC, said: "Reports of the death of cash are greatly exaggerated.

"Despite the impression created by some banks, it's the most popular way of paying and cheapest for most retailers."

He suggested that lenders "were pushing new cards and payment technologies hard" because of the money they stood to make on charges.

A recent report from the consortium showed that 56 per cent of all retail transactions in 2008 were made with cash, down from 60 per cent the previous year.