A cashless society would discriminate

I am pleased to see news coverage of Amazon’s reported decision to accept cash at its Go stores. Accepting cash ensures that all consumers can buy from any business. In fact, retailers that ban cash are excluding approximately 25% of people in the U.S. who are either totally “unbanked” or “underbanked,” with little or no access to other payment methods. Instead of excluding people, retailers should be making it easier for everyone to participate in our economy.

The Federal Reserve cites cash as the most frequently used form of payment, accounting for 30% of U.S. consumer transactions, ahead of all other payment methods. Unlike alternative forms payment, cash requires no fees, no passwords, it can’t be hacked and it’s not vulnerable to identity theft, crashing IT systems and power outages. Cash safeguards our personal information, so each of us can decide whether or not to share the details of our spending habits. Digital payment technology makes it too easy to surrender our privacy.

Cash also makes good business sense for both retailers and consumers. Fees charged by card issuers cost merchants as much as 2.5% per transaction, easily outpacing the cost of handling and processing cash, especially when you consider the fraud-related costs that come with cards and digital payments. These costs are passed on to consumers, driving prices higher for everyone.

Cash will endure because of the benefits it offers to merchants and consumers, regardless of socioeconomic status.

Doug Pertz, president and CEO The Brink’s Company

Coppell, Texas