[Finance] The end of Notes and Coins?

[dsr-burnley]

Outage of what?

Can't think of a possible scenario where I couldn't make a contactless payment. Except all of the banks at the same time, or a long-term blackout - both apocalyptic scenarios.

Banking app down? Use a card.
VISA down? Use banking or payment app, or alternate card.
Phone network down? Use card, or wi-fi.
Wi-fi off? Use phone network.

etc.

Here's a situation where you couldn't make a contactless payment.

You are ten miles from home and NatWest's sytem is down. The taxi dirver's card machine is operated by NatWest. How do you pay?

 

[Norman Potting]

The idea that banking is free in the UK is a myth. It’s only free if your account is empty.

Generally free for private customers, usually levy charges for business customers. Going back 20+ years private bank customers used to often pay charges, often if the account balance fell beneath a certain level.

 

[dsr-burnley]

Firstly, the taxi driver is unable to accept anyone's charges, not just mine. The onus is on him to have at the very least a 2nd option.

However in a cashless society, vendors would not be relying on just one payment method for this reason.

A solution to this scenario would be the taxi driver having a sign saying "card payments not available, mobile payments only" and the driver would proceed to accept payments by mobile pay or mobile bank transfer.

That would be a solution. But cash is a far better and more flexible solution.

For one thing, doing it your way it is essential to have two bank accounts in case NatWest goes down for a week like it did a year or two back.

 

[Creaky]

Generally free for private customers, usually levy charges for business customers. Going back 20+ years private bank customers used to often pay charges, often if the account balance fell beneath a certain level.

As soon as you deposit money in a current account it is costing you in terms of lost interest. Ten years ago banks in the UK were making in excess of £4 billion on this, Lord knows how much they are making today.

 

[beorhthelm]

Firstly, the taxi driver is unable to accept anyone's charges, not just mine. The onus is on him to have at the very least a 2nd option.

However in a cashless society, vendors would not be relying on just one payment method for this reason.

good idea. how about some form of token to exchange? or write down an iou to be redeemed at the bank?

 

[beorhthelm]

As soon as you deposit money in a current account it is costing you in terms of lost interest. Ten years ago banks in the UK were making in excess of £4 billion on this, Lord knows how much they are making today.

money in pocket or undermatress gets no interest either. no interest is not a cost, and with interest rate so low its moot anyway.

 

[Neville's Breakfast]

money in pocket or undermatress gets no interest either. no interest is not a cost, and with interest rate so low its moot anyway.

Opportunity cost is still cost. I think [MENTION=27275]Creaky[/MENTION] makes a good point.

 

[Creaky]

money in pocket or undermatress gets no interest either. no interest is not a cost, and with interest rate so low its moot anyway.

Of course no interest on money in a current account is a cost. The banks aren’t lending your money out at extremely low interest rates either.

Banks are a business and as such aren’t offering accounts, with all the ancillary costs involved with that, out of the goodness of their hearts - bank cards, support staff, branch premises and staff, web site and so on all cost money, lots of it - they make that back and more, (much more), by charging outrageous fees to the most vulnerable of their customers using your money.

 

[beorhthelm]

Opportunity cost is still cost. I think [MENTION=27275]Creaky[/MENTION] makes a good point.

not really, if we want to look at opportunity cost then we should to look at investments, bonds, shares etc rather than simple bank accounts. i dont get charged for deposting money, direct debits, bank transfers etc, the service is free to me.

 

[Arthritic Toe]

Here's a situation where you couldn't make a contactless payment.

You are ten miles from home and NatWest's sytem is down. The taxi dirver's card machine is operated by NatWest. How do you pay?

You can't pay in this situation - as previously said, it is up to the taxi driver to resolve the situation, if cashless payment was presented as an option when you got in the cab.

I had an actual situation like this in a pub/restaurant. Their card network was down - there were only a handful of customers, and the pub just took everyone's name and asked them to come back and pay tomorrow.

 

[Creaky]

You can't pay in this situation - as previously said, it is up to the taxi driver to resolve the situation, if cashless payment was presented as an option when you got in the cab.

I had an actual situation like this in a pub/restaurant. Their card network was down - there were only a handful of customers, and the pub just took everyone's name and asked them to come back and pay tomorrow.

Of course it would be up to the taxi driver - in most cases I imagine the resolution would be, “sorry mate, you’ll have to walk”.

 

[Blackadder]

I last took out some cash on 9 March. It is still in my wallet. My Sainsbury's Local won't take cash at the counter at the moment. there is one checkout machine that will accept cash.

The two Chinese owned Fish and Chip shops in Haywards Heath are cash only. I assume this will change at some point.

Apart from the examples already mentioned, cash is also handy when a group of us go out and we have a drinks kitty, which can be topped up as and when. Anything left goes towards the usual curry.

As others have mentioned I always like to have some cash on me as backup.

 

[Guinness Boy]

I last took out some cash on 9 March. It is still in my wallet. My Sainsbury's Local won't take cash at the counter at the moment. there is one checkout machine that will accept cash.

The two Chinese owned Fish and Chip shops in Haywards Heath are cash only. I assume this will change at some point.

Apart from the examples already mentioned, cash is also handy when a group of us go out and we have a drinks kitty, which can be topped up as and when. Anything left goes towards the usual curry.

As others have mentioned I always like to have some cash on me as backup.

I still have £20 from March in my wallet, untouched also. Have only paid online or used contactless for nearly two months.

The bolded bit applies to me too. In happier times beer / meal kitties were staples of big nights or days out with mates and the same with my annual lads trip away for sports and beers. Went to Slovenia last year and while we paid for our rental car and adrenaline sport in advance all meals and nights out were done simply by all of us chucking in the same number of Euros each and keeping going till it was gone.

It will be interesting seeing the cashless Amex when we eventually get back. I've got used to giving my son a tenner to spend how he wants. but a lot of that was to do with him spending the first £3.50 in cash at the programme stands outside the station. I guess those will be cashless going forwards and I'll need to top up his Go Henry.

 

[Blackadder]

I still have £20 from March in my wallet, untouched also. Have only paid online or used contactless for nearly two months.

The bolded bit applies to me too. In happier times beer / meal kitties were staples of big nights or days out with mates and the same with my annual lads trip away for sports and beers. Went to Slovenia last year and while we paid for our rental car and adrenaline sport in advance all meals and nights out were done simply by all of us chucking in the same number of Euros each and keeping going till it was gone.

It will be interesting seeing the cashless Amex when we eventually get back. I've got used to giving my son a tenner to spend how he wants. but a lot of that was to do with him spending the first £3.50 in cash at the programme stands outside the station. I guess those will be cashless going forwards and I'll need to top up his Go Henry.

Four of us, who sit together in the Upper West, did exactly that on our trips to Prague and Krakow. It avoids people being hit with an extra round or the round that that is twice the price of any other bar. It certainly works well for us.

 

[ManOfSussex]

i see, on site pharmacy I guess.

Yep, it has a dispensing pharmacy on site.

My GP surgery accepts card payments only for prescriptions. I don’t know whether that’s only since Covid.
The only cash I have used in recent months (prior to lockdown) has been for the dog walker, barber’s and for football programmes. As we emerge from isolation none of those will be necessary.

My GP surgery states it's hoping to bring one in soon to be able to accept card payments in person, but at present if you pay for prescriptions, it's cash only. I'm surprised actually because it's a very good surgery, I'm lucky to be on it's books.

On a positive note (no pun intended) I rather suspect the charity pot for St. Michael's Hospice is picking up quite a lot of change there though now as a result.

 

[Neville's Breakfast]

not really, if we want to look at opportunity cost then we should to look at investments, bonds, shares etc rather than simple bank accounts. i dont get charged for deposting money, direct debits, bank transfers etc, the service is free to me.

But you don’t get paid interest on your current account positive balance. Having said that I think there are accounts that will offset your positive and negative (eg mortgage) balances.

 

[Knocky's Nose]

Like many on this thread, I've had £40 cash in my wallet for about 2 Months..

I do miss cash, but contactless is just quicker.

 

[Arthritic Toe]

Of course it would be up to the taxi driver - in most cases I imagine the resolution would be, “sorry mate, you’ll have to walk”.

If its clear at the outset that the taxi only takes cash, you wouldnt get in it if you didnt have any. If the taxi usually takes cards, but his machine isnt working at the end, the resolution would not be “sorry mate, you’ll have to walk”.

 

[Creaky]

If its clear at the outset that the taxi only takes cash, you wouldnt get in it if you didnt have any. If the taxi usually takes cards, but his machine isnt working at the end, the resolution would not be “sorry mate, you’ll have to walk”.

It would be around here!

Don’t forget the scenario is that cash no longer exists.

 

[Arthritic Toe]

It would be around here!

Don’t forget the scenario is that cash no longer exists.

How long do you think the taxi driver would stay in business in a cashless world if he only took cash?