23/03/2009 - Cash still rules the High Street
Last year most of the transactions in Britain were still carried out using notes and coins, despite a reported drop in the number of people using cash.
The British Retail Consortium`s (BRC) figures show 56% of all transactions were made with cash, while it was also the method of payment for 33% of spending in shops.
The BRC said cash is popular in the recession because it helps people budget, however, cash transactions dropped compared with 2007 when the figure was 60%.
For retailers cash is the cheapest payment method because it only costs about 2p per transaction, while for debit cards they pay 8p and credit cards 35p.
BRC said if all payment methods cost as little as cash, businesses would save more than £800 million, meaning cheaper prices for consumers.
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 the cheapest for most retailers.
"But banks are pushing new cards and payment technologies hard. Not surprising when they stand to make so much more in charges."
Copyright © Press Association 2009
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