The question of when card payments will overtake cash has risen again, and in low transaction value, cash-heavy businesses like c-stores, the use of cards can begin to encroach on margins. So, are retailers noticing more card payments?
Linda Williams
Premier retailer
There’s certainly more payments being made with card, and it’s becoming a bit of a concern given the costs of processing transactions. The more people use cards, the more it costs us. We’re currently looking at what we can do to protect ourselves – we currently charge 25p for utility payments, and in the future we might have to look at charging for card payment, or at least raising the minimum purchase from £5 to £10. It’s something we’re looking at closely.
Donna Morgan
Best-one retailer
Cash is still the biggest payment method by far but over the last couple of year I’ve certainly noticed more people paying by card – we’re even beginning to see customers using credit cards more. It’s fine if they’re buying groceries but what we don’t want is someone buying cigarettes and nothing else then paying by card. To avoid that scenario we’ve got a £10 limit, or the option of paying a 25p fee. The last thing you want is to be a busy fool.
Iain Wilson
Nisa retailer
In the time we’ve had this shop, which is over a year now, I’ve not noticed an increase in the amount of transactions that are paid for by card. I’d have to say that we’ve been fairly consistent over that time, and that equates to around two thirds of purchases being made with cash and a third with card. We’ve got a high percentage of student customers here, around 25%, so they tend to prefer to pay cash. We do have a £5 limit on card payments though, just to protect margins.
John Murray
Nisa retailer
It’s definitely something I’m seeing more of across all of our shops. We’re running at about 60% cash payments to 40% on card and that’s changed from 80/20 two years ago so you can clearly see it’s becoming more people’s preference. We do have a £5 limit, because it costs us money for each transaction – although I’d say I have worked to get the best deal possible for us with the bank. So, yes there’s a charge but it’s how people want to pay so it’s a service we provide.
