This Whole "Don't Use Cash" Thing

There is currently a campaign going on in Stockholm/Sweden to get people to use their bank cards when paying in stores instead of using cash because it will cut down on robberies. Now, I'm not sure who is ultimately behind the entire thing but I imagine whoever it is hasn't completely thought the whole thing through in regards to the consumer end of the deal.

In Sweden you don't get charged an absurd "fine" every time you take out money from a cash machine. Some banks charge a very minimal withdrawal fee, but for the most part it is free. And this goes for all bank machines regardless of which bank they are affiliated with. I think this is great, because hey who wants to pay to get some of their own money.

So, how do they make up for the lack of this little extra bit of "ripping you off"? Well, there are a number of banks that charge you an annual fee for being able to use your card for ATM withdrawals, and there are also banks that charge you a small fee every time you use your card directly to make purchases. But, the real way they make up for it is by charging the store where you make the purchases a fee every time they receive payment via a bank card. "Ha hah! ", you may be thinking...at first. Then you realize that it is ultimately you the consumer that will cover these costs when they are taken into account at your local grocery store etc. when they do their mark up.

A great example of this, and we've all been privy to it, is when you realize you don't have any kronor on you and you want to buy a cup of coffee and a snacky cinnamon bun some place. You dutifully put your card forward to pay, because you have seen the signs around town telling you to do this, and you feel good in the fact that you are helping "the cause". Then the cashier tells you that since your purchase amounts to less than 100kr you will be charged an additional 5kr. But wait, what's this? I thought you told me to pay with my card?

The reason they are charging you is because the credit card people are charging them about 5kr every time someone uses their card to pay at their store. This is easily absorbed by large stores, but the little guy gets screwed. By accepting your card for a 20kr purchase he has effectively garnered himself a profit of -3kr. This doesn't just happen in convenience stores, it happens in restaurants, bars, and other assorted shops. In fact, quite a number of places do not accept cards, even in this day in age, because of the additional fees charged to them for such purchases.

So why are you telling me to use my card? I don't get anything out of it and most small businesses don't get anything out of it. Who stands to gain? Most certainly the credit card people and the banks do. You might as well put their logos on the bottom of those posters around town.

And what about the whole "anti-robbery" thing? Well, that's a whole other mess. This whole thing seemed to come about based on the absurd number of transport robberies. It seems people have been watching Heat a little too often. Everyday there seems to be a new successful heist. In fact that there have been so many that color marked bills are quite prevalent around town. I've had random 20kr bills rejected three or four times.

The solution? Get rid of hard currency. If their is no money to transport then their is no money to steal. What in the heck kind of idea is that? How about creating a better method of transporting money instead of making everyone else pay for the fact that the system doesn't work.

The way I see it the reason people are robbing security vans is because they can. If they felt like they couldn't they wouldn't risk doing it. So, who would they rob instead? Probably the little shop down the street that has cash in the till. And will continue to have cash in the till because he doesn't take cards because he is being charged by the likes of Visa and MasterCard for such transactions. Seems a bit reciprocal doesn't it?

I'm not saying this is some sort of conspiracy by the government to put small business owners out of business. What I'm saying is, if they want this system of "everyone does their part to help prevent robberies" to work, then they're going to have to do something themselves. Lower the fees that are charged to small businesses, or get rid of them entirely and supplement the cost in an alternative manner through the bank itself. I'd gladly pay 100kr a year to avoid having to pay an extra 5kr every time I use my card to buy a Twix bar. (Just don't start charging me every time I take out money from a cash machine. Because if you do that I will start keeping my savings in a coffee tin.)

Seriously, the only people that are gaining from this proposed system are big companies and the government. For everyone else it's a lose-lose situation.

K. Panda