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

[Bletchleyite]

Didn't the residents of Eyam leave their coins in pots filled with vinegar during the Great Plague?

I believe so, yes.

 

[paddington]

If we are still using cash in 2060, many £1 coins from 2016 will still be circulating and in usable condition.

If we had a plastic £1 note I suspect heavily used ones would only last about 1-2 years before needing to be replaced. I can't pinpoint exactly what it is about the UK polymer notes but they are just not as good as some other countries' ones.

For notes with a similar purchasing power to £1, the Hong Kong $10 and Singapore $2 are very sturdy, but the low value Malaysia, Mexico, Nigeria, Romania, Vietnam notes deteriorate quickly.

 

[island]

If we are still using cash in 2060, many £1 coins from 2016 will still be circulating and in usable condition.

Given that no new £1 coins were struck and circulated in 2016, this is most unlikely indeed

 

[cactustwirly]

And even if you don't notice, your bank is required to reimburse it. And barring low value stuff like Tube travel it'll block after 6 transactions.

It is, to all intents and purposes, zero risk.

3 times now, after that a pin is required

 

[Bletchleyite]

3 times now, after that a pin is required

6 at my bank, perhaps different banks differ.

 

[cactustwirly]

6 at my bank, perhaps different banks differ.

Well all banks will have it soon, as it is part of some new EU regulations. Some banks have implemented it early.

 

[Tetchytyke]

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.

Do you have the HSBC app? You can use the app to pay in cheques without leaving your house.

 

[Bletchleyite]

Well all banks will have it soon, as it is part of some new EU regulations. Some banks have implemented it early.

From a quick Google that's not quite what it is. It's when transactions totalling EUR100 have been made, which could be the 4th if each one is for £30 but if they're all small may not be.

 

[S&CLER]

Do you have the HSBC app? You can use the app to pay in cheques without leaving your house.

I don't own a mobile phone. In the end I went to the Ormskirk branch, got a bus there and had just over 20 minutes to pay in and do some other banking bits and pieces before catching the next bus back.

 

[island]

From a quick Google that's not quite what it is. It's when transactions totalling EUR100 have been made, which could be the 4th if each one is for £30 but if they're all small may not be.

5 transactions or €150 in fact. (PIN entry required on the sixth transaction or the transaction taking the total over €150.)

And the FCA has indicated an intent to reverse all this next year once it is allowed to deviate from EU regulations.

 

[Qwerty133]

Well all banks will have it soon, as it is part of some new EU regulations. Some banks have implemented it early.

Its a stupid regulation and hopefully one of the first things we get rid of the second we are properly out of the EU.

 

[Bletchleyite]

Its a stupid regulation and hopefully one of the first things we get rid of the second we are properly out of the EU.

I agree. As the banks are the ones taking the risk, it should be them who decide what risk level they wish to take.

 

[Struner]

EU rules usually set a minimum standard for customers/citizens?

 

[johnnychips]

I hate to say it but I think @Bletchleyite might be right! I’ve always used cash in the past for small transactions but now I use contactless all the time, as requested by most shops.

The disadvantage is that my online bank statement is gigantic.

If beggars ask me for ‘any spare change’ I can genuinely say that I haven’t got any.

 

[Meerkat]

I hate to say it but I think @Bletchleyite might be right! I’ve always used cash in the past for small transactions but now I use contactless all the time, as requested by most shops.

The disadvantage is that my online bank statement is gigantic.

If beggars ask me for ‘any spare change’ I can genuinely say that I haven’t got any.

Why don’t you use a credit card for all the contactless, unless you are getting cashback on your bank card?

 

[Dai Corner]

I hate to say it but I think @Bletchleyite might be right! I’ve always used cash in the past for small transactions but now I use contactless all the time, as requested by most shops.

The disadvantage is that my online bank statement is gigantic.

If beggars ask me for ‘any spare change’ I can genuinely say that I haven’t got any.

One man's detailed bank statement is annoying, another's is useful information

 

[Bletchleyite]

One man's detailed bank statement is annoying, another's is useful information

Agreed, I like the analytic options Monzo etc provide. Knowing exactly how and when I spend gives so much more control than just drawing out cash and spending it until it's gone.

 

[S-Bahn]

Personally, I wouldn't miss cash if it disappeared altogether. Cards will eventually disappear in favour of smartphone payments and online ordering.

 

[bussnapperwm]

Well, I had to get the bus earlier (as well as get some shopping) and because both the bank and post office were shut (bloody bank holiday) I couldn't put any money in my account, so I had no choice but to pay by cash in the shop and on the bus to the shop...and neither complained when I paid in cash (although the bus driver tried to not issue me with a ticket!)

Before anyone says "why couldn't you just use another card", simple. I've got money in that account, but that's reserved for a big shop, plus any Ola/Ubers I would need to bring shopping back, and it had my board payment in there that I needed to draw out.

 

[Bald Rick]

Well, I had to get the bus earlier (as well as get some shopping) and because both the bank and post office were shut (bloody bank holiday) I couldn't put any money in my account, so I had no choice but to pay by cash in the shop and on the bus to the shop...and neither complained when I paid in cash (although the bus driver tried to not issue me with a ticket!)

Before anyone says "why couldn't you just use another card", simple. I've got money in that account, but that's reserved for a big shop, plus any Ola/Ubers I would need to bring shopping back, and it had my board payment in there that I needed to draw out.

My question, and I’m genuinely curious, is where did you get the cash from in the first place that meant you needed to pay it in to a bank?

I genuinely don’t know anyone who is paid by cash, even my builder pays his guys and all his sub contractors by bank transfer. I guess that is not the case for all in that trade, and I also don’t know any market traders or taxi drivers, many of whom I guess receive a fair bit of cash. But I’m wondering what other jobs involve being paid by cash.

 

[eastdyke]

My question, and I’m genuinely curious, is where did you get the cash from in the first place that meant you needed to pay it in to a bank?

I genuinely don’t know anyone who is paid by cash, even my builder pays his guys and all his sub contractors by bank transfer. I guess that is not the case for all in that trade, and I also don’t know any market traders or taxi drivers, many of whom I guess receive a fair bit of cash. But I’m wondering what other jobs involve being paid by cash.

Window Cleaners? I pay my Domestic Cleaner cash (but not just now ).
My daughter told her cleaner that she would be paying by bank transfer in the future and the cleaner quit!

 

[Bletchleyite]

Window Cleaners?

I pay mine (when I bother) by PayPal, he has online booking (and yes, it's a one man business, not a big company).

I pay my Domestic Cleaner cash (but not just now ).
My daughter told her cleaner that she would be paying by bank transfer in the future and the cleaner quit!

Sounds like a tax dodger there, then.

This is the issue I have with businesses only taking cash - so many of them are doing it to evade tax.

 

[Dai Corner]

I'm also mystified that anyone can have an income without having a bank account, pocket money recipients and cash-in-hand workers and traders aside. Don't they find it terribly inconvenient to pay their utility bills and Council tax in cash?

Maybe the 'tax advantages' make it worthwhile? It will have come back to bite them in the current situation though, as they won't have declared profits to claim 80% of.

As for not being able to use the preferred card for a payment, I just use the one I have on me or has sufficient funds and make an adjustment later through online banking.

 

[Bald Rick]

Window Cleaners? I pay my Domestic Cleaner cash (but not just now ).
My daughter told her cleaner that she would be paying by bank transfer in the future and the cleaner quit!

Yes I thought of window cleaners. But then realised if I paid mine cash I’d have to go the cash point specially to get cash to pay him, and then I’d have to make a special trip to the bank to pay in the cash I’d paid myself!

 

[bussnapperwm]

My question, and I’m genuinely curious, is where did you get the cash from in the first place that meant you needed to pay it in to a bank?

Erm...putting it aside for a rainy day, loans from family, little bits left over from atm withdrawals. There is plenty of legitimate reasons why I was trying to deposit cash.

Don't they find it terribly inconvenient to pay their utility bills and Council tax in cash?

Easy...many councils give pay point barcodes on their council tax bills and several utility company's offer prepayment meters/ barcodes for pay point.

 

[scotrail158713]

My question, and I’m genuinely curious, is where did you get the cash from in the first place that meant you needed to pay it in to a bank?

I genuinely don’t know anyone who is paid by cash, even my builder pays his guys and all his sub contractors by bank transfer. I guess that is not the case for all in that trade, and I also don’t know any market traders or taxi drivers, many of whom I guess receive a fair bit of cash. But I’m wondering what other jobs involve being paid by cash.

I do football refereeing at the weekend and most of that is paid by cash (apart from Club Academy games - e.g. Hibs/Hearts u12, u13 etc - which are paid by bank transfer from the SFA)

 

[Bletchleyite]

Erm...putting it aside for a rainy day

Better done in a bank account.

loans from family

If I lent money to family in the sort of sum where I'd want to bank rather than spend it, it'd be by BACS.

little bits left over from atm withdrawals

I do do that in terms of a "change jar" but it only needs banking maybe once every 6 months.

 

[Bald Rick]

I do do that in terms of a "change jar" but it only needs banking maybe once every 6 months.

My change jar* was** deposited in the Tesco service till whenever it has more than a couple of quid in it.

* pocket
** past tense, because I don’t use cash any more

 

[Bletchleyite]

My change jar* was** deposited in the Tesco service till whenever it has more than a couple of quid in it.

Some of the older ones with a small conveyor belt in the "cash in" bit were useful for that, you could literally pour them in. You don't see that type any more, though.

You do get those Coinstar machines which do that though they charge about 10% commission.

 

[Bald Rick]

Some of the older ones with a small conveyor belt in the "cash in" bit were useful for that, you could literally pour them in. You don't see that type any more, though.

You do get those Coinstar machines which do that though they charge about 10% commission.

Many a time I have attracted the ire of people queuing behind by putting in about £3 worth of small change for lunch!