People forget that cash transactions also have a cost.
It’s mostly on the risk of keeping and transporting cash, and the cost associated to mitigate those risks.
Small shops are usually more willing to take the risk to avoid fees.
It’s mostly on the risk of keeping and transporting cash, and the cost associated to mitigate those risks.
Small shops are usually more willing to take the risk to avoid fees.
Here, visits to bank branches have been in decline for decades now, especially for cash services, so it makes sense for the banks to reduce the amount of locations that offer those services to save money.
In 2018 there were 854 bank branches in Finland, compared to 1627 in 2007 and 3600 in 1985. Population is 5.5M.
This also has the effect of increasing cash handling costs to businesses if they have to get cash services from a bank branch that is far away.
Sources (Finnish): https://www.finanssivalvonta.fi/kuluttajansuoja/kysymyksia-j... https://www.savonsanomat.fi/kotimaa/Suomessa-pian-alle-tuhat... https://www.kauppalehti.fi/uutiset/pankkien-konttorit-katoav...
So the fact that cash incurs a cost (it does, especially for the merchant) is not the scarecrow argument that would justify Visa or MC boosting fees or even using a credit card.