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Counting on currency again!

January 13, 2014 by Brendan Burge

With a New Year upon us, what better way to celebrate a fresh start than to relate a recent experience that highlights the persistent truth that we are counting on currency — again.

Many times I've shared stories and forecast scenarios that strongly suggest we'll continue to need access to cash. This story is no different, other than the overt effort to discourage credit card use.

In this time when credit card and other payment companies actively promote their products over of cash, they are beginning to feel opposition from a grass-roots initiative.

An increasing number of retail operators are posting notices to customers that communicate a preference for cash or debit card, as opposed to credit cards. They sometimes go further to say that service fees and other costs associated with credit card transactions were the driving force behind their simple request.

Like all of us, these retail business people are trying run their lives and businesses for the lowest reasonable cost and to maximize revenue as much as possible.


Sign posted at a Greek restaurant in Canada.

A member of my family recently gathered with some of her friends at a local restaurant. On their way to their table, they passed a sign (right) with this request:

Would you consider paying by cash or Interac?
You may not know that small businesses pay huge fees to the banks and credit card tompanies to process credit card transactions. Will you help independent firms keep prices down?

It is a certainty that all members of the party noticed the prominent sign. I am reasonably sure they even discussed it once they were seated and had ordered their first glass of wine.

No matter, but my family member took the time to take a picture, pass it to me (I wonder why?) and tell the story to a number of friends and other family members.

The point of the matter is this: We are counting on currency again, and we will continue to count on currency for a very long time. Take that to the bank and look forward to a bright future for our industry.

The organization, CFIB, whose logo appears on the sign above is the Canadian Federation of Independent Business. They have some interesting opinions on cash vs. credit cards; watch their video below: