Coronavirus: Is this the end of physical cash? Will we go completely electronic?

[Bletchleyite]

Furthermore, if I lose my wallet the cash is gone, potentially forever, but I can instantly 'turn off' my cards via my bank's app/website/call centre. I presume that also affects the associated virtual cards stored on my phone.

It does, yes. It might actually be useful, though, if it didn't, and I can see it changing.

 

[Dai Corner]

It does, yes. It might actually be useful, though, if it didn't, and I can see it changing.

I get round this by carrying one physical card and having a different one virtualised on my phone. Unless I lose both my wallet and my phone at the same time I won't be without access to funds.

I should really use cards from different banks to guard against a major system failure.

 

[Tom B]

I have a debit card (which lives in my phone case) and a credit card (which lives in my wallet alongside the cash) - have used this system for several years on the grounds that, if I lost one, I would have some way of continuing to function.

 

[johntea]

In Amsterdam when I was there everything was just starting to kick off and the shops were encouraging card rather than cash

One problem...that 2.99% 'non-sterling purchase fee' per transaction if I wanted to use my Barclaycard over there, had it not been for that I would have happily ditched the cash and used my card for everything!

 

[Bletchleyite]

In Amsterdam when I was there everything was just starting to kick off and the shops were encouraging card rather than cash

One problem...that 2.99% 'non-sterling purchase fee' per transaction if I wanted to use my Barclaycard over there, had it not been for that I would have happily ditched the cash and used my card for everything!

Get a better bank!

 

[najaB]

One problem...that 2.99% 'non-sterling purchase fee' per transaction if I wanted to use my Barclaycard over there...

Often it doesn't work out to be that much of a difference as compared to the spread that most travel money companies make on the difference between bank rate and their high-street rate if you convert your cash. As long as you aren't paying a conversion fee plus a percentage.

As an example, using rates right now £1000 would get you €1070 with the Post Office as compared to €1090 at the mid-market rate. A difference of about 1.89%.

 

[JamesT]

In Amsterdam when I was there everything was just starting to kick off and the shops were encouraging card rather than cash

One problem...that 2.99% 'non-sterling purchase fee' per transaction if I wanted to use my Barclaycard over there, had it not been for that I would have happily ditched the cash and used my card for everything!

Halifax Clarity and Nationwide Member Credit Card are two I’m aware of that do commission-free purchases abroad.

 

[najaB]

Halifax Clarity and Nationwide Member Credit Card are two I’m aware of that do commission-free purchases abroad.

Or open a Euro account balance with Transferwise, Monzo, Revolut, etc. and only pay one conversion fee.

 

[Cowley]

Or open a Euro account balance with Transferwise, Monzo, Revolut, etc. and only pay one conversion fee.

I’ve got a Revolut account which I set up for going to France a couple of times last year and I really like it. Even I understand how to use it!

 

[telstarbox]

From MoneySavingExpert:

The amount you can spend on a card in a contactless transaction is going up, from £30 to £45. This was in the pipeline anyway, but it's been brought forward in a bid to encourage contactless transactions and help combat the spread of coronavirus, minimising the number of times you’ll need to touch a keypad to pay.

It’ll start rolling out at retailers on 1 April, but it won’t apply at every retailer from that date as the changes will take time to be rolled out.

 

[pieguyrob]

As one of the few taxi drivers left in Blackpool, I have to completely disagree with this thread.

My hackney cab is on a company, and, since lockdown, about 80% ish of my jobs have been cash. About 5% have been account work. And the remainder card payments.

Not only am I the only cab out at night, I'm getting "key workers" to and from work, as they rely on my companies service

Bletchleyite says further up the thread that the taxi driver wants cash for tax evoidance. No. He is completely wrong. The driver just wants cash to spend on fuel. My experience is that the card payment will pay out next week, that WILL NOT pay for diesel today. Get a grip.

Oh, I rent my taxi. All card payments go against that rent, I don't physically see that money. Under normal circumstances I actively promote card payments so I pay the boss man in credit, and I keep the cash.

Under current circumstances, I really do need the cash to buy diesel.

And, cigarettes......

 

[Dai Corner]

Even my Mum, in her eighties and rather suspicious of banking technology, has realised the advantages after making her first contactless payment yesterday.

 

[Bald Rick]

As one of the few taxi drivers left in Blackpool, I have to completely disagree with this thread.

My hackney cab is on a company, and, since lockdown, about 80% ish of my jobs have been cash. About 5% have been account work. And the remainder card payments.

Not only am I the only cab out at night, I'm getting "key workers" to and from work, as they rely on my companies service

Bletchleyite says further up the thread that the taxi driver wants cash for tax evoidance. No. He is completely wrong. The driver just wants cash to spend on fuel. My experience is that the card payment will pay out next week, that WILL NOT pay for diesel today. Get a grip.

I understand what you say, but in my experience (at least outside London), taking a taxi is one of the few things you need cash for because so few cabs take cards. Indeed, for me, it is the only thing I need cash for, and as I now never have cash, I don’t use cabs (perhaps there’s a lesson there).

If more cabs took cards, as in London, then cash payments would drop dramatically, and I suspect taxi usage might rise in some places.

The point about needing cash now to pay for diesel now - well thats just cash flow. There’s plenty of organisations and self employed people out there who have to pay suppliers months before they see the benefit of the sale they make from them.

 

[Dai Corner]

I understand what you say, but in my experience (at least outside London), taking a taxi is one of the few things you need cash for because so few cabs take cards. Indeed, for me, it is the only thing I need cash for, and as I now never have cash, I don’t use cabs (perhaps there’s a lesson there).

If more cabs took cards, as in London, then cash payments would drop dramatically, and I suspect taxi usage might rise in some places.

The point about needing cash now to pay for diesel now - well thats just cash flow. There’s plenty of organisations and self employed people out there who have to pay suppliers months before they see the benefit of the sale they make from them.

It does appear that pieguyrob's taxi business is undercapitalised.

I'd be worried about driving around at night with substantial amounts of cash.

 

[Bletchleyite]

I understand what you say, but in my experience (at least outside London), taking a taxi is one of the few things you need cash for because so few cabs take cards. Indeed, for me, it is the only thing I need cash for, and as I now never have cash, I don’t use cabs (perhaps there’s a lesson there).

If more cabs took cards, as in London, then cash payments would drop dramatically, and I suspect taxi usage might rise in some places.

Locally most people use "minicabs" and they are bookable and payable by card on the app. As a result I use them far more than I used to.

 

[pieguyrob]

My taxi (and proper hackney carriage) is on a company. My company are going out of their way to tell people too pay by card, preferably contactless. I also promote it.....

... Its just since lockdown has been introduced, my card payments have down gone considerably, and, as I said at least 80% of my customers want to pay cash. But, put really, my job count has been decimated. My best night so far was last Saturday when I did 15 jobs, last night I did 12. My worst night job counts wise, has been 7. So I'm not exactly carrying Libya's deficit around with me in my sky rocket, neither am I choking a dozen donkeys!

 

[pieguyrob]

All I want is some cash to buy diesel.

 

[Edgeley]

It would be a bad day if we went completely electronic. It would make it so much easier for the powers-that-be to give us a monetary "haircut".

 

[island]

Or open a Euro account balance with Transferwise, Monzo, Revolut, etc. and only pay one conversion fee.

Best not to keep too much on “travel cards” as they’re not covered by the FSCS.

Monzo I think is covered but the others you mentioned are not.

 

[najaB]

Best not to keep too much on “travel cards” as they’re not covered by the FSCS.

Yes, the idea is that you only transfer what you intend to use in the short term. Same as you would only convert the Euros that you intend to spend on your holiday.

 

[Bletchleyite]

For the record Monzo is a proper bank and is fully covered by FSCS.

 

[bussnapperwm]

For the record Monzo is a proper bank and is fully covered by FSCS.

Same with Starling, who also provide Euro Accounts and are a proper bank (I bank with them!)

 

[telstarbox]

It would be a bad day if we went completely electronic. It would make it so much easier for the powers-that-be to give us a monetary "haircut".

Cash, famously, has never been stolen from someone's person or a business.

 

[Dai Corner]

It would be a bad day if we went completely electronic. It would make it so much easier for the powers-that-be to give us a monetary "haircut".

They have ways of doing that such as interest rates, taxation and inflation.

 

[S&CLER]

Not quite on topic, but banking-related: I need to pay in a cheque, but my local branch in Southport is closed because of staff shortage. Looking at the HSBC branch finder, I'm told that the nearest branches are in Formby and Ormskirk, both open 10-2 pm; what's more surprising is that the 3rd nearest branch is said to be in St Annes on Sea, only 8.9 miles away. Unfortunately that's a straight line distance across the Ribble estuary (and even more bizarrely, the Preston branch isn't shown).

I haven't made my mind up if a bus trip to Ormskirk on an empty bus to pay cheques in is acceptable as "essential" travel or not. The money is a bulk refund from a holiday company for a cancelled holiday in mid-Wales I organised (we should have been going today), and I need to pay it in before I can write cheques to my disappointed clients for their individual refunds. So far they are being patient.

The machines to pay cheques in at my local branch (HSBC Lord Street) are in the lobby, behind the closed outer doors, and the usual button to press to open the outer doors for admission when the branch itself is closed, is not admitting anyone at the moment. The mobile app for paying cheques in is no use, as I don't bank on line and have never owned or needed a mobile phone in my life (I'd need a spirit medium or an Ouija board to get in touch with my loved ones).

 

[simonw]

Not quite on topic, but banking-related: I need to pay in a cheque, but my local branch in Southport is closed because of staff shortage. Looking at the HSBC branch finder, I'm told that the nearest branches are in Formby and Ormskirk, both open 10-2 pm; what's more surprising is that the 3rd nearest branch is said to be in St Annes on Sea, only 8.9 miles away. Unfortunately that's a straight line distance across the Ribble estuary (and even more bizarrely, the Preston branch isn't shown).

I haven't made my mind up if a bus trip to Ormskirk on an empty bus to pay cheques in is acceptable as "essential" travel or not. The money is a bulk refund from a holiday company for a cancelled holiday in mid-Wales I organised (we should have been going today), and I need to pay it in before I can write cheques to my disappointed clients for their individual refunds. So far they are being patient.

The machines to pay cheques in at my local branch (HSBC Lord Street) are in the lobby, behind the closed outer doors, and the usual button to press to open the outer doors for admission when the branch itself is closed, is not admitting anyone at the moment. The mobile app for paying cheques in is no use, as I don't bank on line and have never owned or needed a mobile phone in my life (I'd need a spirit medium or an Ouija board to get in touch with my loved ones).

If you have paying in slips you can post the cheque and paying in slips to the branch for processing.

 

[Busaholic]

Cash, famously, has never been stolen from someone's person or a business.

Someone steals £20 from you, they can only spend it once, whereas a contactless card....

 

[Meerkat]

Someone steals £20 from you, they can only spend it once, whereas a contactless card....

They can’t steal any money from you as the bank cover it.....

 

[Adsy125]

Someone steals £20 from you, they can only spend it once, whereas a contactless card....

And you tell your bank who give you a full refund...

 

[johntea]

Not cash related as such but I’m having an extended hotel stay as I’m on a NHS project away from home and obviously cutting out the commute in the circumstances, it is quite weird to literally have a full English breakfast dropped off outside my room door each morning then leaving the empty plate outside afterwards for it to magically disappear!