However, these sudden changes have a negative impact on many customers. Below are four undeniable problems associated with UK cashless businesses. There aren`t many ways to bypass cashless businesses, but these suggestions should make things a little easier. Unfortunately, many people find it difficult to do without money. Many jobs and private banks use cash, so customers move slowly. If you want to know more about the problems caused by cash refusal, read on. The UK risks “sleepwalking in a cashless society” before it is ready, according to a recent report. Alternative payment methods could make cash obsolete by 2026, but millions of people still rely on cash for their daily payments. Article by Nick Green.
HIGH Street chains that choose to go cashless cause headaches for diehards who desperately need more budget. Even though our pennies and books are often referred to as legal tender, it is actually the right of the business owner to decide which payment methods they want to accept. As we move closer and closer to a cashless society, I worry about seniors and the most vulnerable, as many rely on cash for budgeting and it`s easy to overspend when using a card. In the UK, it is not illegal for businesses to refuse cash as a means of payment, and in the same breath, it is not illegal for them to refuse card payments either. The only situation where this is not the case is when a company accepts payment of a debt. A cashless economy is not an inclusive economy, and preventing people from paying cash essentially means discrimination against low-income people, the elderly, the homeless, and even the undocumented. Getting a credit or debit card often requires identification, utility or other bills, money to deposit, and a financial history. Card transactions are also associated with a fee for the business where the cash is not (until it is at least deposited). That`s why stores like Amazon and salad chain Sweetgreen have reversed their policy in favor of accepting cash, as they have found it essential to their success. But Torres and Mitchell said cashless laws are there to balance technological progress with a fair and inclusive economy.
The Shoreditch branch of sushi chain Itsu is also cashless, as are the rest of its stores across the country. However, given that many older customers are still reluctant to drop their wallets, can a company ethically and legally refuse cash payments? However, more than half of UK consumers believe UK businesses should be legally required to accept cash, so there are still strong feelings about this, even though the country is widely adopting debit cards, credit cards and digital payments. In addition to measures to protect those who currently rely on cash, there is also a clear need to prepare the country for the transition to a truly cashless future. The biggest challenge will be to meet the needs of those who are still struggling with other forms of payment and who can rely heavily or entirely on cash. FinTech companies and traditional banks have the opportunity to educate and guide people on cashless alternatives, while being more aware and in-depth of their specific needs and circumstances. The UK and US are similar when it comes to cash payment, which must be accepted to pay a debt, e.g. a restaurant bill, parking ticket, etc. However, there is a legal obligation to accept money for the exchange of goods or services. According to the Federal Reserve, under Section 31 of the United States Code. 5103, entitled “Legal tender,” states: “The coins and coins of the United States [including Federal Reserve notes and circulation notes of Federal Reserve banks and national banks] are legal tender for all debts, public rights, taxes, and duties.” This law means that all U.S. funds, as noted above, constitute a valid and legal offer to pay the debt when offered to a creditor. However, there is no federal law requiring a private business, person or organization to accept currency or coins as payment for goods or services.
Private companies may develop their own policies on whether or not to accept cash, unless a state law provides otherwise. As you can see, there are many reasons why UK companies might be refusing cash. It`s undoubtedly a burden, but that doesn`t mean you`re out of luck. In the next section, we`ll cover some exceptions and ways to bypass cashless businesses. “Our latest figures make it clear that the UK is anything but a cashless society.” Millions of Brits still rely on cash for everyday payments, so if you run a local family store in a small town, it may not make much sense to be cashless. This is especially true if your store is located in an area where connectivity is unreliable. Martin Foster runs The Indians Next Door and sells Indian snacks nearby. It also became cashless. Typically, it is low-income workers and seniors who suffer the most when it comes to “access to cash.” In response to potential discrimination against low-income people, Connecticut, San Francisco, Philadelphia, New Jersey, Oregon, Rhode Island, Illinois, New York and Washington DC have passed laws banning cashless stores and retailers.
Massachusetts has required institutions to accept cash since 1978. The UK government also introduced new laws in 2020 to ensure the bank maintains an accessible treasury network. Section 31 U.S.C. 5103, entitled “Legal tender,” states: “The coins and currencies of the United States [including Federal Reserve notes and circulation notes of Federal Reserve banks and national banks] are legal tender for all debts, public rights, taxes, and duties.” This law means that all of the above U.S. funds constitute a valid and legal offer to pay the debt when offered to a creditor. The report`s author, former financial mediator Natalie Ceeney, warned that this trend could mean the disappearance of cash before the country is ready. She said: “If we sleepwalk in a cashless society, millions of people will be left behind. It also adds that U.S. coins and currencies are considered a “valid and legal offer to pay the debt when offered to a creditor.” Social media users have shared online posts about companies refusing cash payments, claiming that it is illegal. This assertion is partly false.
This shift towards cashless forms of payment in turn affects the availability of cash. The report points out that the cost of operating the ATM network is £5 billion, but the declining demand for cash makes operating these machines less economical. Ideas from what? estimate that ATMs are closing at a rate of around 300 per month, limiting access to cash in many regions and reinforcing the trend towards cashless payments. However, financial experts are calling for government and regulatory intervention to save the UK`s treasury system, on which many people remain completely dependent.