Cashless society

[Value Collector]

I was at Service NSW to renew my Driver’s License, I decided to pay my fee by way of Eftpos using my debit card (not a credit card, my wife likes me to use it for the loyalty points, another inflationary transaction but I digress she who must be obeyed always wins ), I asked the gentleman at the counter if there was a fee attributable to the transaction he said yes (btw I always carry cash, I like it and no I don’t have a cash business for tax evasion purposes ) I explained it was my debit card not Credit, he said if I tapped their would be a fee however if I inserted my card into the eftpos machine and proceeded to enter the amount, transaction type and password there would be no fee.

Not sure why this was the case nonetheless it is frustrating to see why this type of penny pinching needs to occur everywhere, not everyone is aware of these options, daily simple transactions ought not be an avenue for padding profits clarity should be availed to all consumers.

Two points.

1, when you tap it is processed through Visa or Mastercards system, so costs the retailer the same as if it were a credit card hence why they charge a fee, if you insert it is processed through the eftpos system which is cheaper for them.

2, But more importantly, don’t be to worried about the 1% or 2% fees some places charge, you can Earn up to 3% in benefits using a credit card, so even with the fee it’s normally worth while. Infact you can invert the situation and say paying cash costs you 3% in lost benefits.

For example if I spend $1000 on my credit and get charged a 1% fee that’s $10.

But the transaction earns me 1000 virgin points worth $23.40 to me, plus $6.70 interest by keeping my $1000 cash in my bank account offsetting my home loan for an additional 30 days.

 

[JohnDe]

“Mr Fox said the government had to ensure cash remained an acceptable means of payment in businesses, noting many Australians were facing increasing card payment costs from surcharging.”​

Linfox boss Peter Fox weighs in on Armaguard uncertainty

The big banks have misused their market power to push cash distribution companies to unprofitability, claims Linfox executive chairman Peter Fox, who has called for government intervention to preserve access to notes and coins in Australia.

Speaking in the wake of a breakdown in negotiations between the banking sector and Armaguard, Australia’s biggest cash distribution company, Mr Fox has weighed into the debate.

This comes after months of negotiations between Armaguard, which distributes 90 per cent of cash in the country, and a team headed by the Australian Banking Association.

Mr Fox said the ABA’s ultimatum last week to Armaguard that it accept a $26m rescue deal was an unhelpful intervention, revealing the Linfox group was not keen to be dictated to.

“I’m hopeful common sense will prevail, but we’re happy to sit down and try and resolve it,” he said.

“I think the government has an obligation to tell the Australian community what is the place for cash in our society

The Linfox boss, who chairs the sprawling trucking and logistics empire founded by his father Lindsay Fox, said the deal proposed by the banks was unworkable as it would have forced Armaguard to disclose details of all its current contracts with customers.

He said this was unacceptable as it was clear the banking sector was keen to shift away from cash and towards card use, as the banks profited from electronic payments but were forced to bear the cost of cash use.

As revealed in The Australian’s Margin Call, the banks have engaged consulting firm McKinsey to determine if they can operate the cash in transit business themselves and cut out Armaguard

Mr Fox said the government had to ensure cash remained an acceptable means of payment in businesses, noting many Australians were facing increasing card payment costs from surcharging.

Mr Fox’s intervention comes as the ABA and a consortium of supermarkets, retailers and AusPost secured permission from the competition regulator to set up a working group to game plan a potential failure of Armaguard.

This comes after Linfox injected a further $10m in funding into Armaguard after refusing to sign the ABA’s deal.

Mr Fox said Armaguard was hoping it would renegotiate a number of new cash supply deals with the banks in the coming weeks, noting the big banks had already used their dominant market position to drive $110m in revenue out of the Armaguard business in recent years through aggressive pricing of cash supply deals.

“They’ve driven pricing below cost and below margin,” he said.

“We need to reprice what we’re doing for the benefit of the four major banks to ensure cash in circulation.”

Mr Fox pointed to a number of cash supply deals that saw the banks demand no inflation-adjusted cost price increases.

Mr Fox said Armaguard needed circa $50m extra in funding to cover the cost of the services it supplied to the banks as well as bankroll its costs from its acquisition of cash distribution rival Prosegur.

“All we really want is reasonable pricing for the services we provide,” he said.

Mr Fox said the public statements made by the ABA and the panic from some cash users, including Coles which issued warnings, has done “an enormous amount of damage”.

“I’m not going to hypothesise what happens over the 10 weeks. I’m hopeful there’s sufficient goodwill between our major banks and our customers to get it resolved,” he said.

 

[TimeISmoney]

​

Banks reveal impact after Aussies try to drain ATMs in cashless protest​

Draw Out Some Cash Day was a grassroots social media movement that wanted to prove Aussies still need and use physical money.​

The Australian Banking Association (ABA) has revealed the result of this week’s protest against the country going cashless.
Draw Out Some Cash Day was organised by pro-cash advocates who wanted to send a message that physical money is a “use it or lose it” commodity. Aussies were encouraged to head to a bank branch or ATM and take out as much money as they could.
Pictures and videos were uploaded to social media showing queues going out the door at some locations, showing just how many people care about this issue. But did it make any difference?

“Across the industry, there was no material difference in withdrawals of cash [on April 2],” the ABA told Yahoo Finance.

“Whilst Australians are using less and less cash, we are not going to be cashless. Australians don’t need to change their behaviour when it comes to withdrawing cash, it will continue to be available and accessible to those who wish to use it.”

 

[JohnDe]

They tell me that there is no surcharge on Debit cards, if you don’t swipe. But what happens when the merchant only has swipe facilities? This is what happens at a capital city airport -

 

[farmerge]

They tell me that there is no surcharge on Debit cards, if you don’t swipe. But what happens when the merchant only has swipe facilities? This is what happens at a capital city airport -

View attachment 174193

I don't have an issue with the surcharge when I use my credit card, it's the percentage that gets up my left nostril. 1.4% from $1 and up. Give me a break. It's not a fixed charge.

 

[Prepper Pete]

I don't have an issue with the surcharge when I use my credit card, it's the percentage that gets up my left nostril. 1.4% from $1 and up. Give me a break. It's not a fixed charge.

Its almost like building a multi colored LED circuit Board, there is more costs involved as you need to purchase more LED's than just the one.

 

[JohnDe]

My friends are traveling through Europe and posted this early this morning -

 

[JohnDe]

I’m noticing more businesses preferring cash. This might be a problem for rural communities, as banks shut down their branches.

The decision to go cash-only was sparked by a flooded restaurant.​

​

"We had big floods through the restaurant, so we closed it down and we had all these machines costing us a lot of money," Ms James said.​

​

"It cost us hundreds of dollars just to give them back."​

Western Australia's King River Tavern dumps electronic payments to ensure cash remains king​

While many businesses across Australia are becoming cashless, this small West Australian pub only accepts cash.

The King River Tavern sits on the edge of its eponymous river, about 20 minutes north-east of Albany on the state's south coast.

For two decades Sam James has run the pub, which has been cash-only for the past 15 years.

Signs highlighting the unique arrangement dot the walls of the pub.

The decision to go cash-only was sparked by a flooded restaurant.

"We had big floods through the restaurant, so we closed it down and we had all these machines costing us a lot of money," Ms James said.

"It cost us hundreds of dollars just to give them back."

Cash remains king at tavern​

The tavern does have an ATM for those caught short without cash.

"If they don't have cash they can get some out or miss out," Ms James said.

But the publican said her stance had the support of a majority of patrons, with only limited grumbles.

"They say it's refreshing and they're glad to use cash over card," she said.

"I'm not against banks by no means. We all need them but we all need to keep cash alive as well."


Ms James said cash was the only way she could operate during blackouts.

"We've had some of our best nights here when the power is out … I can only sell drinks with cash," she said.

She conceded her approach would not work for all businesses.

"Cash works for my business … it's easy for me because we don't serve food," Ms James said.

"A lot of people will say, 'Oh, I wish I could do cash only', but every business is different."

'Businesses don't have to accept cash'​

The Australian Competition and Consumer Commission details on its website that businesses should be "clear about the types of payments they accept" and that "businesses don't have to accept cash".

But as banks continue to close regional branches, including Bankwest announcing it will close the doors on all 60 of its branches, there has been growing concern about access to cash.

Following Bankwest's announcement, a "Cash is king" movement has gained support in Western Australia as social media users and businesses post support for coins and notes.

The Australian Banking Association reported ATM withdrawals dropped from 75 million per month in 2008 to 31 million in 2021, a cash decline from $13.6 billion to $8.6 billion.

Electronic payments costly​

Albany Chamber of Commerce and Industry (ACCI) chief executive Kristen Pyrz-Brown said the cost of electronic banking for businesses was often passed onto the customer.

She said banking costs added to continuing rising costs across the board for businesses.

"It does put business in a really dichotomous position," Ms Pyrz-Brown said.

"We know that the cost of doing business has been exponentially rising, obviously in a macro-economic level as well," she said.

 

[wayneL]

I’m noticing more businesses preferring cash. This might be a problem for rural communities, as banks shut down their branches.

The decision to go cash-only was sparked by a flooded restaurant.​

​

"We had big floods through the restaurant, so we closed it down and we had all these machines costing us a lot of money," Ms James said.​

​

"It cost us hundreds of dollars just to give them back."​

I have a few larger accounts I invoice or trust to do DD. All others are cash, not because I particularly want cash, but because it is the best way to actually get paid without having to damn well chase it up.

It all goes in the bank anyway, why, because I may want the borrowing capacity in the future

 

[farmerge]

I have a few larger accounts I invoice or trust to do DD. All others are cash, not because I particularly want cash, but because it is the best way to actually get paid without having to damn well chase it up.

It all goes in the bank anyway, why, because I may want the borrowing capacity in the future

@wayneL She who is never wrong has gone cash only when shopping these days.
If this makes her happy then I am also.
Happy wife/spouse is certainly a happy life, well that is until the supply of red runs out as it did tonight.
Of course that was my fault I am told..

 

[againsthegrain]

I had a virtual prepaid mastercard on my phone from some rewards, had 2 or 3 bux left so I went to a newsagent and got a $1 scratchie. Trying to fit into my new gen Z role I took out my phone. The guy had a sour expression... is that all your buying? do u have cash? After reading everywhere cash is dead I was caught off guard.. erhm no sorry... ok

As he takes out the terminal he hums in there is a 20c charge.. well yeah fine I just want to finish off my pre-paid card.

So 20% charge wow not too convinient for small purchases on the go

 

[farmerge]

I had a virtual prepaid mastercard on my phone from some rewards, had 2 or 3 bux left so I went to a newsagent and got a $1 scratchie. Trying to fit into my new gen Z role I took out my phone. The guy had a sour expression... is that all your buying? do u have cash? After reading everywhere cash is dead I was caught off guard.. erhm no sorry... ok

As he takes out the terminal he hums in there is a 20c charge.. well yeah fine I just want to finish off my pre-paid card.

So 20% charge wow not too convinient for small purchases on the go

@againsthegrain As the mantra goes "Cash is KING"

 

[mullokintyre]

Spent 5 days in Hawaii where cash is king.
The bus system, while very good convenience wise, only took exact cash.
Some other eating joints only took cash.
The same thing here in Palm Springs.
Always asked if I was paying in cash or card.
The two ATM,s we have visited both give you the choice of which denominations you want your cash to be given.
Laundromat still only accepts quarters.
Cash aint dead in USA just yet.
Mick

 

[Craton]

I had a virtual prepaid mastercard on my phone from some rewards, had 2 or 3 bux left so I went to a newsagent and got a $1 scratchie. Trying to fit into my new gen Z role I took out my phone. The guy had a sour expression... is that all your buying? do u have cash? After reading everywhere cash is dead I was caught off guard.. erhm no sorry... ok

As he takes out the terminal he hums in there is a 20c charge.. well yeah fine I just want to finish off my pre-paid card.

So 20% charge wow not too convinient for small purchases on the go

Last time (a very long time ago) I gambled on a $1 scratchie, it cost me $1.10 which included the GST component.
Is that still the case?

 

[divs4ever]

Last time (a very long time ago) I gambled on a $1 scratchie, it cost me $1.10 which included the GST component.
Is that still the case?

... it shouldn't be

.. the GST should be included in the price you paid ( at least in the last few years , i have been buying them as Xissie presents )

 

[Craton]

Thnx @divs4ever, that $1.10 scratchie has always stuck in my mind, bought at a newsagent with some left over coin shrapnel.
That'd be over 15 or more years ago now, always thought it was odd.

 

[againsthegrain]

Thnx @divs4ever, that $1.10 scratchie has always stuck in my mind, bought at a newsagent with some left over coin shrapnel.
That'd be over 15 or more years ago now, always thought it was odd.

it doesn't sound right, most things you buy in proper shops gst is included in final price but on the receipt there is a breakdown and shown how much gst is included in the price.

btw I didn't win nothing

 

[farmerge]

it doesn't sound right, most things you buy in proper shops gst is included in final price but on the receipt there is a breakdown and shown how much gst is included in the price.

btw I didn't win nothing

@againsthegrain well you did give the Govt a donation, isn't that a win, well not for you but only for the money wasters.

 

[againsthegrain]

@againsthegrain well you did give the Govt a donation, isn't that a win, well not for you but only for the money wasters.

Gave a 20% donation to the credit card processing company/bank too

 

[wayneL]

Gave a 20% donation to the credit card processing company/bank too

You virtue signaller!!