While this can cause short-term problems, there are several reasons why a business may refuse cash payments. Which one? calls on companies to join their cash flow commitment to ensure that people who regularly use or rely on cash are not excluded from the transition to digital payments. Despite some confusion about “legal tender”,” retailers are not required by law to accept cash payments, and such decisions are in the company`s direction as long as they do not discriminate against customers. James Morris, 29, who runs Morridge, a card-only coffee and porridge shop, said: “It`s more convenient for our accounting software, we don`t have to pay for the money to be delivered, phone payments are much more efficient and we don`t have to spend 15 minutes trading at the end of the day.” Nevertheless, the government wants to ensure that people, including those with vulnerability characteristics, have adequate access to banking services, including payment services. The government works closely with regulators and stakeholders in the public, private and tertiary sectors. On liquidity in particular, the government works closely with financial regulators, including through the Joint Authorities Cash Strategy Group led by the Ministry of Finance, to monitor and assess liquidity trends. In addition, under the Equality Act 2010, all service providers are required to make appropriate adjustments to the way they provide their services, if any. The government does not intend to impose cash acceptance. While the government recognises that the ability to exchange cash remains important for millions of people across the UK, particularly those belonging to vulnerable groups, it remains the choice of sole proprietorships to accept or refuse any form of payment, including cash or card.
This can be based on factors such as customer preference and cost. The Pret A Manger coffee chain in Shoreditch was a place that accepted cash – although some of London`s other 300 restaurants no longer do. High street chains that choose to go cashless are a headache for diehards who are desperately trying to budget more. Daisy Nyamie, 36, of The Hat Shop in Great Western, said it was mostly tourists who liked cash after exchanging currency. The use of debit cards officially surpassed cash payments in 2018 thanks to the convenience of contactless payments, as well as chip and PIN. The pandemic has further reinforced this trend, as most stores now expect card or digital wallet payments and cash payments to be a secondary option first. In the UK, it is not illegal for companies to refuse cash as a means of payment, and at the same time, it is not illegal for them to refuse card payments. The only situation where this is not the case is when a company accepts the payment of a debt. The phone survey found that about one-fifth of consumers were not allowed to make cash payments at least once between April and July 2021, as coronavirus restrictions began to ease. As a result, one in six consumers who were not allowed to use cash could not make their purchase. And there was good news for people who rely on cash but have a harder time reaching them because bank branches are closed and ATMs are being removed. The survey found that 84% of participants felt that cash payments should continue to be accepted by businesses and businesses.
If you`d like to learn more about rejecting money or any other aspect of your finances, contact our financial experts at GoCardless. Learn how GoCardless can help you with ad hoc or recurring payments. Without cash on the spot, not only will your insurance costs be significantly lower, but you will also have a lower risk of theft. If all your payments are made by card, there is a digital file that ensures you are insured in case of theft. You`re also less likely to find an employee with their fingers at the checkout. While public health issues related to the coronavirus pandemic have led many to opt for card payments, the Bank of England noted that the risk of using cash “is no greater than touching another common area such as handrails, door handles or credit cards.” When asked if they accepted cash at Cote Brewery, one employee replied, “We don`t, I`m sorry. It`s a company-wide policy. We do not hold any money on the premises.
However, more than half of UK consumers believe it should be a legal obligation for UK businesses to accept cash, so there is still a strong feeling on the issue, even given the widespread adoption of debit cards, credit cards and digital payments in the country. Whether or not you choose to accept cash ultimately depends on your business and your audience. On the one hand, card transactions often charge a fee, while cash at the point of sale is always free. The whole chain became cashless when it reopened after Covid. Banks have known for years how the wind is blowing and have responded by closing thousands of ATMs and raising fees for direct bank deposits. Depositing money at the bank through your local branch is now a tedious and complicated process that most businesses can do without. A spokesman said: “We are seeing more and more people relying more and more on cash as a proven way to manage a budget. The government does not intend to impose cash acceptance. Businesses can choose the payment methods they accept.
The government`s legislative proposals support the acceptance of cash. Our money was also accepted at KFC, as would be the case in all of the more than 800 fast food establishments across the country. The government has said laws will be enacted to ensure the future of the currency, and according to Which? the Financial Conduct Authority (FCA) should be mandated to measure the level of cash discharge as part of its ongoing actions. In the vicinity of Pizza Hut, we were told that all restaurants no longer take cash either. “Our latest figures make it clear that the UK is anything but a cashless society.” Deciding whether or not to accept cash belongs to the sole proprietorship, but there are many reasons why they may just want to go by card. An important aspect of supporting the acceptance of cash by companies is to ensure that companies have access to deposit facilities at an appropriate distance. In the March 2020 budget, the government committed to legislating to protect access to cash in the UK. As a result, the government launched a consultation on access to liquidity in July 2021. The consultation sought views on legislative proposals to ensure that people only have to travel reasonable distances to deposit or withdraw money. The government`s proposals support the continued use of cash in people`s daily lives and help local businesses continue to accept cash by ensuring they have access to lockers.