@mhkohne @mekkaokereke Card fees are very visible. In the US they’re high (2% interchange is not uncommon, then add proessing fees)
But cash is not free
The merchant has to return it to the bank at the end of the day, so they can sort it, filter out fakes, and place the money into the merchant’s account to pay suppliers. They also have to purchase rolls of coins and packs of notes in the denominations they need in order to make change - because generally there’s a mismatch between the notes you receive from customers and those you need to hand back to them.
Someone also needs to build ATMs. They need to maintain them. They need to send armoured trucks around regularly to restock them, so they continue to function. An awful lot of infrastructure is required to make cash work, and the baseline costs of running it are higher than running the card networks.
In recent years, we’ve had fintech acquirers like Zettle and SumUp appear on the market. They’ve been successful in acquiring market share in part because they’ve driven down both the costs of terminals themselves, but also the transaction fees that retailers pay.
And in EEA (and formerly-EEA) countries, where interchange is regulated to 0.2% for most debit cards and 0.3% for most credit cards, this means that the cost of accepting card payments has gone down a lot. In some countries (NL, SE, and UK all stand out here), it’s cheaper than cash.
So merchants there are beginning to prefer it, or even not accept payments in cash. It doesn’t help that you can’t steal money from a card terminal in the same way as you would from a cash drawer.
And this is important to understand, because access to cash and its’ utility is undeniably a net benefit for civilization.
But to protect it we must figure out how to fund it.