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Cash, are its days numbered?

Not sure how charging for purchases under $5 contributes much to money laundering

Because it allows you to insist that yes, absolutely, the bulk of the business is cash-only. Rather like gaming machines, tanning salons, taxis, ice-cream vans, and pop-up car washes, you can then insist that you had a really good day's trading, and all that money in the till came from legitimate customers, honest.

Pay your tax on the earnings, tah-dah, clean money.

No, it's not going to give you Trump-like levels of money laundering (oh noes, I has made a massive loss in my casinos, how could this possibly happen), but for regional-level criminals?
 
Because it allows you to insist that yes, absolutely, the bulk of the business is cash-only. Rather like gaming machines, tanning salons, taxis, ice-cream vans, and pop-up car washes, you can then insist that you had a really good day's trading, and all that money in the till came from legitimate customers, honest.

Pay your tax on the earnings, tah-dah, clean money.

No, it's not going to give you Trump-like levels of money laundering (oh noes, I has made a massive loss in my casinos, how could this possibly happen), but for regional-level criminals?
I’d suggest much easier to launder money through a business that delivers a service like a nail bar or car wash than it is to launder money through a retail business.

Often reputable businesses charge card fees to their customers.
 

theoriginalphantom

MIA
Book Reviewer
They have been saying that cash will be gone within the decade for about the last 30 years and yet still not one country, even ones more advanced in cashless payments than UK have got rid of their cash.

Sweden had almost gone cashless last year and was planning to go completely cashless this year. I admit I wasn't there for long, but it seemed that everyone was set up for it.

It'll screw up the charity tins, beggars and buskers
 

Joker62

ADC
Book Reviewer
Sweden had almost gone cashless last year and was planning to go completely cashless this year. I admit I wasn't there for long, but it seemed that everyone was set up for it.

It'll screw up the charity tins, beggars and buskers
I've not carried cash since the beginning of lockdown, paying by card everywhere. The look on beggar's faces when you say that you haven't had cash in your pocket since March and only use cards is stunning, you can see their future ebbing away in their eyes.
 
Sweden had almost gone cashless last year and was planning to go completely cashless this year. I admit I wasn't there for long, but it seemed that everyone was set up for it.

It'll screw up the charity tins, beggars and buskers

Beggars in China already accept cashless payments via Alipay

 
Sweden had almost gone cashless last year and was planning to go completely cashless this year. I admit I wasn't there for long, but it seemed that everyone was set up for it.

It'll screw up the charity tins, beggars and buskers

And the teachers, doctors, scientists and engineers there will be upset
 

theoriginalphantom

MIA
Book Reviewer
And the teachers, doctors, scientists and engineers there will be upset


I only dealt with native Swedish engineers.
With jobs
Mostly maintaining mayonnaise manufacturing.
 

Chef

LE
As it seems both government and banks are in favour of it, I tend to wonder what's in it for them and how much it's going to cost me. Remember Corbyn's desire that all transactions should be recorded, even paying the window cleaner etc etc?

Once it's all electronic the taxman can take his cut off every transaction and he will.

Of course the technology will doubtless be as reliable as the Post Office systems were and as accountable.

Be careful what you wish for. Lots of servicemen didn't like the old system of paying for meals and got PAYD.
 

miner69er

Old-Salt
One of the main reasons that the establishment wants rid of cash. It costs them money for you to have it whereas when you pay by card they make money on every transaction. You can pay cash and there's no cost to you but when you pay by card there is, you may not pay directly as the retailer swallows the fee.
Load of bollocks - or words to that effect:

Visa and Mastercard accused of charging 'excessive' fees​

 

miner69er

Old-Salt
Sweden had almost gone cashless last year and was planning to go completely cashless this year. I admit I wasn't there for long, but it seemed that everyone was set up for it.

It'll screw up the charity tins, beggars and buskers
Aye - us beggars will also be fecked when they bring in negative interest rates. Yeah I know its the Gruniad but:

Bank of England policymaker backs negative interest rates:​

Negative interest rates in the UK edged closer on Monday after a Bank of England policymaker warned the central bank would need extra firepower to boost the economy following the surge in Covid-19 cases.


In a gloomy assessment of the next few months, Gertjan Vlieghe, who sits on the monetary policy committee, the bank’s interest rate setting body, said the second wave of Covid-19 was holding back consumer spending and suppressing business investment, which would push unemployment higher.


Vlieghe said there was a strong risk that the broad-based recovery since the summer would suffer a setback and that the central bank would need to inject further funds into the economy before the end of the year.


My advice - stash your cash and dont be pishing the matress!
 
Aye - us beggars will also be fecked when they bring in negative interest rates. Yeah I know its the Gruniad but:

Bank of England policymaker backs negative interest rates:​

Negative interest rates in the UK edged closer on Monday after a Bank of England policymaker warned the central bank would need extra firepower to boost the economy following the surge in Covid-19 cases.





My advice - stash your cash and dont be pishing the matress!


I was always told :- "Cash is King" - there are some advantages to the use of Cards , but I would always prefer a Cash Transfer from my Bank to a recipients Bank - 34 seconds (?) job done.

Additionally , no delays where Banks state - 'Not Credited to your Account yet' - or - 'Not Cleared to your Branch yet' - allowing the Bank to use your money for over-nighting , sometimes for 3 days or more...a useful piece of change AND you have to pay for the Transfer !!
 
I was always told :- "Cash is King" - there are some advantages to the use of Cards , but I would always prefer a Cash Transfer from my Bank to a recipients Bank - 34 seconds (?) job done.

Additionally , no delays where Banks state - 'Not Credited to your Account yet' - or - 'Not Cleared to your Branch yet' - allowing the Bank to use your money for over-nighting , sometimes for 3 days or more...a useful piece of change AND you have to pay for the Transfer !!
In a slightly bizarre way, cash being king (or the cash cycle) is one of the reasons why businesses sometimes don’t like being paid in cash. As banks branches disappear, it’s getting harder to deposit cash.

For us, the nearest bank where I can deposit out of hours is a 30 minute drive, the nearest Post Office where I can make a deposit in (their) working hours is a 15 minute drive. Cash tends to accumulate and get paid in once a week. But we spend no cash; everything going out goes out by direct debit, card payment or bank transfer.

So cash in the form of notes is actually cash flow negative. Notes are not the king in the “cash is king” mantra; payment systems that get cash in your bank where it’s needed are king.
 
Because it allows you to insist that yes, absolutely, the bulk of the business is cash-only. Rather like gaming machines, tanning salons, taxis, ice-cream vans, and pop-up car washes, you can then insist that you had a really good day's trading, and all that money in the till came from legitimate customers, honest.

Pay your tax on the earnings, tah-dah, clean money.

No, it's not going to give you Trump-like levels of money laundering (oh noes, I has made a massive loss in my casinos, how could this possibly happen), but for regional-level criminals?

I had always thought that many of these type businesses were only viable because the cash in hand earnings were not fully declared.

The money laundering aspect is interesting. Are there any statistics on this? It is also possible to grossly inflate earnings and then put the business up for sale to some unsuspecting buyer.
 
I had always thought that many of these type businesses were only viable because the cash in hand earnings were not fully declared.

The money laundering aspect is interesting. Are there any statistics on this? It is also possible to grossly inflate earnings and then put the business up for sale to some unsuspecting buyer.
Or to another launderer.
 
I had always thought that many of these type businesses were only viable because the cash in hand earnings were not fully declared.

The money laundering aspect is interesting. Are there any statistics on this? It is also possible to grossly inflate earnings and then put the business up for sale to some unsuspecting buyer.
I think there are two different things going on. Businesses that favour cash or don’t take cards at all are the high-risk launderers. Or, at the very least, aren’t declaring all of their earnings to underpay VAT. The jobbing building industry thrives on cash, but your average small builder is probably not laundering money for criminals.

That’s different from retail outlets that set a minimum card level or charge a fee to use a card below that level. Say the level is £5, you’d need to make a lot of transactions to launder significant quantities of cash.

IMHO small businesses charging you extra to use a card for small transactions are, for the most part, just costing themselves sales.
 
Another consideration for those holding large quantities of cash, is that banknotes change. Anyone holding a legally acquired stash of the old paper notes, needs to change them to the new version. You can't just walk into your local branch with your life savings, say £30k in cash, and exchange it.
 
I won’t purchase from businesses that have minimum card levels.

You also said you dont use business that charge a fee for using cards.

For a big time businessman, you do say some stupid things.

Most people (especially those who are decent businessmen) go for the cheapest option.
 

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