That jogged a memory. Way back in 2019.
Coles taps off Visa debit in transaction network tussle
Sends contactless debit down Eftpos Payments Australia pipes instead.
Why not use the cash at small businesses? Usually small businesses charge a fee for credit cards whereas Coles doesn't. So next time you go to a local coffee shop or local small bakery or butcher etc you can pay with cash and avoid the fee.
That jogged a memory. Way back in 2019.
Coles taps off Visa debit in transaction network tussle
Sends contactless debit down Eftpos Payments Australia pipes instead.www.itnews.com.au
Indeed fraud is huge although you won't hear Value Collector speaking about this massive cost associated with digital payments. Fraud with cash (e.g. counterfeit money, etc) is very rare.And don’t forget the cost of fraud -
How big is credit card fraud in Australia?
A record 1.8 million Australians saw $2.2bn of their savings spent or withdrawn after their credit card details were stolen across the 2022-23 financial year.
John De has blocked me, so I didn’t see his post. But, Tender time is higher for cash some instances take Tolls for example, cash booths require stopping, cashless you just drive through.You are wrong again. The whole reason I made that statement because in the RBA report refered to in JohnDe's post actually flags tender time as the biggest cost. Go and look at the figures in the table. According to the RBA tender time is the issue. Which I don't agree with hence my previous statement.
I have bolded the important part below:
"2. Measuring Costs
2.1 Cost concepts
Measuring the costs associated with making payments is far from straightforward. There are many different cost concepts, and participants in the payments system face significant challenges in accurately identifying all the costs associated with a payment, and allocating costs across the various payment methods.
The main resource cost directly incurred by consumers is the cost of their time to make payments. Consumers also incur charges by financial institutions (and in some cases merchants) for payment services.... Of these various time costs, the easiest to measure is tender time – the time spent at the check-out while the payment is being processed. The estimates below draw on the tender times discussed in Section 4.1, which showed that the fastest processing times are for cash payments, followed by EFTPOS, credit cards and cheques."
Fraud with cash also includes the out right theft of it, and not to mention other common scams like “oh no, I paid with a $50 and you gave me change for a $20.Indeed fraud is huge although you won't hear Value Collector speaking about this massive cost associated with digital payments. Fraud with cash (e.g. counterfeit money, etc) is very rare.
In my opinion all payment options should be part of the cost of doing business, and be free. But if you decide to charge for one, why should the other be free.One thing Value Collector doesn't want to acknowledge is that by definition there must be at least one fee free payment option otherwise the advertised price is considered false and misleading advertising because its not in fact actually possible to purchase it at that price. Given that is the case if consumers are charged for using cash then digital payments would have to be free. Why should digital payments be free to the consumer instead of cash when digital payments clearly have a cost also?
Great, then lets make all payment options free. Unfortunately I cannot see that happening in reality.In my opinion all payment options should be part of the cost of doing business, and be free. But if you decide to charge for one, why should the other be free.
Well according to the table put out by the RBA cash on average has a lower tender time than EFTPOS.But, Tender time is higher for cash some instances take Tolls for example, cash booths require stopping, cashless you just drive through.
They already are at most places, it’s only really small businesses that charge to use cards.Great, then lets make all payment options free. Unfortunately I cannot see that happening in reality.
Any thoughts on way Aldi then charge for credit card use in their stores, well it is here at our local, which we don't patronise.They already are at most places, it’s only really small businesses that charge to use cards.
Most big businesses allow you to use cards for free, because they know the small percentage cost of processing those transactions digitally is less than the cost they pay to process cash eg staff labour counting tills, armed guards picking up deposits and delivering floats etc etc.
Any thoughts on way Aldi then charge for credit card use in their stores, well it is here at our local, which we don't patronise.
Not exactly a Mum and Dad small business.
that wasn't the one i was talking about but i had one of them as well ( it soon got over-full and the excess went into pockets )When I had my paper selling spot on the cnr of Walcott and Beaufort Streets in the early 60s I also had one of those gizmos that held coins of all denominations. A very handy bit of kit.
AWESOME , am not a KFC fan .. one more reason to go elsewhere ( there is usually 3 or 4 fast food outlets in a cluster )John De has blocked me, so I didn’t see his post. But, Tender time is higher for cash some instances take Tolls for example, cash booths require stopping, cashless you just drive through.
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On another topic, I noticed a KFC drive thru tonight that is now cashless, it shows big business that are weighing up the real costs, are moving cashless where they can.
View attachment 183443
I think it’s just the drive thru that’s cashless, but I am not sure.AWESOME , am not a KFC fan .. one more reason to go elsewhere ( there is usually 3 or 4 fast food outlets in a cluster )
She Who is Never Wrong at my insistence did this week's shopping at the local Aldi. Well, though and behold all but one that she saw were using a myriad of cards to pay for their purchases with.There's a crucial factor to consider: the costs of processing cash in businesses like Aldi are high but largely fixed, such as armed guards, totaling around say $1,000 per week (as a minimum) regardless of cash volume. This creates an interesting dynamic. When cash transactions are high, it makes sense to incentivize even more cash payments, as each additional transaction doesn't incur extra costs beyond the fixed $1,000, while saving 0.5% in fees. Conversely, if cash transactions are low, but fixed costs remain high, businesses may implement strategies to shift transactions to lower-cost digital payments, optimizing their cost structure.
So Aldi preferring cash might be a legacy situation due to the choices they made years ago, and how they have trained their customers to act.
It may change over time, if they switch their preferences one way or the other and decide to push digital.
.She Who is Never Wrong at my insistence did this week's shopping at the local Aldi. Well, though and behold all but one that she saw were using a myriad of cards to pay for their purchases with.
She, of course used cash.
Aldi just collecting that little bit extra because they can.
The sheep of the world will one day wake up to this fact.
She Who is Never Wrong at my insistence did this week's shopping at the local Aldi. Well, though and behold all but one that she saw were using a myriad of cards to pay for their purchases with.
She, of course used cash.
Aldi just collecting that little bit extra because they can.
The sheep of the world will one day wake up to this fact.
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