No need of cash in 5 years !!

Cashless Society by 2012, Says Visa Chief

By Tim Webb

 

Paying for goods with notes and coins could be consigned to history within five years, according to the chief executive of Visa Europe.

Peter Ayliffe said that, by 2012, using credit and debit cards should be cheaper and more convenient than cash.

Some retailers could soon start surcharging customers if they choose to buy products with cash, because of the greater cost of processing these payments, he warned.

Visa Europe briefed the British Retail Consortium last month on new “contactless” cards that can be waved in front of a scanner to make small payments.

However, the consortium dismissed this vision and claimed that card processing fees, which regulators are investigating, are still too high.

One member of the consurtium said that the estimated “interchange” fee charged to retailers amounts to some 4p for each transaction.

Nick Mourant, treasurer at Tesco, said: “There is a duopoly between Mastercard and Visa in the UK. Their setting of fees is anti-competitive.”

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2 thoughts on “No need of cash in 5 years !!

  1. That’s not surprising, considering here in the US Visa is running ads trying to indoctrinate people with the notion that cash is bad and time consuming. The fact is cash is the only form of payment where the credit card companies don’t make any money. Now things make sense.

    Between the predatory lending, lack of transparency and interchange fees the credit card industry is in need of some oversight. I was glad to see that both Senators Dodd and Levin have already held hearings on the industry’s practices. This consumeraffairs.com article has a nice summary,

    http://www.consumeraffairs.com/news04/2007/03/credit_card_reform.html

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