Visa Offering To Pay U.S. Businesses To Reject Cash Payments

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Visa is attempting to ignite the start of a cashless society and has begun by paying U.S. restaurants and food vendors to reject notes and coins. Used POS terminal supplier Firemane says the move is forward-thinking and will benefit consumers.

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We're focused on putting cash out of business.

Visa is attempting to ignite the start of a cashless society and has already begun a trial in the U.S. By offering $10,000 to 50 restaurants and food vendors to reject notes and coins, Visa is testing the waters to see if people are ready for this transition.

Visa’s chief Executive Al Kelly said, ‘We’re focused on putting cash out of business.’ The argument is that transactions will be more secure if credit cards, debit cards and mobile payments are favoured, but it is no secret that Visa will benefit hugely from a cashless world. Credit card companies typically charge merchants 1-3% in processing fees for each transaction.

U.S. citizens are divided on this matter. Those opposed to the transition note concerns over a lack of choice. They argue that a cashless society will mean more government tracking on personal spending and there can be no under-the-table transactions. They also argue that cash is good for budgeting, as it is physically handled, and a cash society keeps prices down.

In the U.S., the amount of cash in circulation is continuing to grow. Despite the rise of credit cards and payment apps, the Federal Reserve noted that at present there are approximately 39.8 billion bank notes in circulation – a large increase from the 25.6 billion in 2005.

Banks are also in favour of cash, and over the years they have made it easier for people to access their cash. In 2015 consumers made approximately 5.8 billion withdrawals from ATMS, and in 2016 consumers spent approximately $2.1 trillion in cash transactions. However, according to market-research firm Euromonitor International, that number is expected to fall to $1.9 trillion in 2021.

Those in favour of a cashless society argue that cash is unhygienic, expensive to keep in circulation, and doesn’t offer rewards and benefits like credit cards. If the transition is successful, POS terminal suppliers will be busy meeting high demands. Firemane is one such supplier that specializes in the sale of used credit card terminals and used POS equipment, generally in volume. They buy, sell and refurbish used POS equipment to order for companies all across the globe.

Ben Harris, the director of Firemane said, ‘A cashless society simply means more convenience. It’s forward-thinking and it’s thinking global. People all over the world will be able to connect more easily with this one card, or this one system.’

For more on this perspective, visit http://firemane.com/.

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Ben Harris
Firemane
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