Source · Select Committees · Treasury Committee
Recommendation 113
113
Accepted
Small businesses committed to accepting physical cash, vital for market preservation
Conclusion
We welcome the commitment by small businesses, including convenience stores, to accepting physical cash from those who need to pay for it. We note that for some types of businesses, including market traders, cash remains fundamental to the preservation of markets. (Conclusion)
Government Response Summary
The government agrees on the importance of businesses having clear information on payment methods and highlights existing data from the British Retail Consortium, alongside ongoing work by the Payment Systems Regulator (PSR) to improve transparency of card scheme and processing fees.
Government Response
Accepted
HM Government
Accepted
The Government agrees it is important that businesses and organisations of all shapes and sizes have access to clear and transparent information regarding payment methods. It is vital businesses are able to make informed decisions about the methods of payment they chose to accept. There is currently data available from the British Retail Consortium5 which provides a detailed and informative overview of the cost of offering and accepting different payment methods. The 2024 British Retail Consortium Payment Survey calculated the cost of processing cash transactions as £0.0258 per transaction. The average cost of processing a debit card payment was 0.27% of the value of the transaction. The cost of accepting specific payment methods will be unique to each firm and depend on a range of factors including size and the services they require. Furthermore, there is ongoing work to ensure the cost of paying by card is affordable and clear. The PSR has consulted on plans to improve the transparency of scheme and processing fees for both merchants and 5 2024-payments-survey.pdf acquirers.6 This will allow firms to make better choices about the methods of payment they accept and the companies they partner with to provide specific services.