Need to know
- Some businesses selling non-essential items are moving away from accepting cash
- A recent CHOICE survey has found that cash remains more popular than previously thought
- There are concerns some businesses could begin charging a fee for the use of cash as card surcharges are removed
For Melbourne woman Heather Lewis, access to cash is a lifeline to society.
Heather, who uses a wheelchair and has a range of disabilities, says she only uses cash and wouldn't feel comfortable handing over a bank card to a support worker.
"Removing cash is taking away our independence. If everything went that way, I'd have to have someone help me with everything," she says.
"I feel much safer with cash and I have control over my money."
Each fortnight Heather visits her local bank branch in Melbourne's outer eastern suburbs and withdraws her full Disability Support Pension. She divides the money into different expense categories, which she puts in plastic slips.
I just feel more comfortable using cash. It keeps my money skills up and I know how much I have
Melbourne woman Heather Lewis
It's an old-fashioned way of keeping track of her spending, but it works for her.
"I just feel more comfortable using cash. It keeps my money skills up and I know how much I have, how much I can spend, or if I have to wait until the next pay day," Heather says.
"The banks are trying to force everybody online, even if it means taking away people's independence. They don't see the cost of what they are doing. It's not right and it's not fair, it should be my choice if I want to use cash," she adds.
New CHOICE data shows carrying cash is still popular
While the federal government is developing a mandate that cash continue to be accepted by all businesses that sell essential goods, some non-essential shops are moving away from physical currency.
Heather says she has noticed certain popular chain stores at major shopping centres are no longer accepting cash and she worries about what this will mean for her in the future.
Despite the use of cash becoming less common, a recent CHOICE survey shows people are still carrying cash at rates well above the commonly used statistics cited by the Reserve Bank of Australia (RBA)
65% of people surveyed are likely to have cash on them at any given time, with almost 50% carrying cash for peace of mind and in case of emergency
The RBA says only 7% of the population use cash for more than 80% of their in-person transactions. While that statistic captures people like Heather, a nationally representative survey of over 1000 people collected by CHOICE in June this year shows a much higher number of casual cash users.
Almost two thirds (65%) of people surveyed are likely to have cash on them at any given time, with almost 50% carrying cash for peace of mind and in the case of an emergency.
More than a third of people (37%) pay with cash to save money by avoiding card fees or to access discounts.
Having cash helps Heather to manage her money and organise her expenses.
Cutting cash risks further exclusion
Jean Skeat, director of policy and campaigns at the Consumer Action Law Centre says, phasing out cash risks isolating and excluding certain people in society.
"We should be really looking for ways to further include people. If someone requires cash to operate on a day-to-day basis, we really need to make sure that we're keeping cash available for that person."
"With an increased cost of living, you are subject to fees either by withdrawing cash from some ATMs or [through] card surcharges. People are using cash because it is free," Skeat says.
Nobody should have to pay to use their own money, but right now there is nothing to stop a business from putting a surcharge on cash
CHOICE head of policy Morgan Campbell
CHOICE head of policy Morgan Campbell says that, with the government committed to banning debit card surcharging, there is a risk that businesses will introduce surcharges on the use of cash as a way to recoup costs associated with maintaining a cash supply.
"At the moment, businesses have to provide a free way to pay, and many want to surcharge card usage, so cash remains free. But once card surcharges are banned, there is a risk some businesses will look to charge customers extra to pay with cash."
"We think the government needs to get out in front of this and proactively stop that from happening," Campbell says.
"Nobody should have to pay to use their own money, but right now there is nothing to stop a business from putting a surcharge on cash. The card surcharge ban will be a great step, but we don't want to see the burden of surcharges just shifting from one set of customers to another."
For Heather and many like her, the ability to access cash and make cash payments without surcharges is essential to maintaining independence.
"I still go shopping and get groceries and things that I need. I don't want to have carers come in just for the sake of it. I value my independence," she says.
"People need access to money and it shouldn't matter how they want to access it or how they want to use it. It's personal choice."
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Stock images: Getty, unless otherwise stated.
