The Case for Cash

---

Cash keeps value whole. Cards shave value at every turn. If we want a resilient, private and fair economy, we should use cash whenever we can.

The compounding cost problem.
With cash, £100 stays £100 as it moves from hand to hand. With cards, a fee is skimmed each time. Assume a simple 2% card fee.

• Transaction 1: You spend £100 by card - the shop receives £98.00.
• Transaction 2: The shop spends that £98 by card - the supplier receives £96.04.
• Transaction 3: Supplier spends £96.04 by card - the courier receives £94.12.
• Transaction 4: Courier spends £94.12 by card - the garage receives £92.24.
• Transaction 5: Garage spends £92.24 by card - the parts dealer receives £90.39.
   

After 10 card transactions, £81.71 remains; £18.29 goes in fees. After 20, only £66.76 remains; £33.24 is lost. Cash loses nothing. Card payments drain money from local economies into bank and processor fees.

Discipline and debt.
Cards make spending effortless, leading to overspending. If balances aren’t cleared monthly, high interest applies. Convenience becomes costly. For short or medium-term borrowing, cheaper options include sinking funds, credit unions, salary advances, overdrafts, or fixed-term loans, which provide clearer limits and lower costs.

Credit scores and penalties.
Late payments, high card use, and only making minimum payments lower credit scores and increase borrowing costs. Cash limits spending naturally, while cards encourage habits that harm credit ratings.

Fraud, theft and data exposure.
Cash theft is limited to what’s stolen. Card systems risk large-scale loss through breaches, skimming, and account takeovers. Each card payment creates a lasting data trail used by companies, brokers, and governments. Cash creates none.

Surveillance and control.
Digital payments depend on intermediaries. Accounts can be frozen, transfers blocked, and spending flagged. Central bank digital currencies extend this: money can be restricted by time, place, or product, and balances frozen instantly. In a cashless system, control rests with those who run it.

Keep cash alive.
Keeping cash preserves choice. It works without power, enables local trade, protects privacy, and avoids payment fees. Losing it means accepting a system where banks and the state can charge for participation, steer spending, and decide who may transact.

What to do.

1. Pay cash where possible and ask to pay cash if you are told card-only.
2. Support businesses that accept cash and tell them why.
3. Keep a sensible cash float at home for routine spending and contingencies.
4. Challenge cashless policies in your community and raise them with councillors and MPs.
5. Favour payment methods that minimise fees when cash is not practical.
6. Teach children to budget with physical notes and coins. It builds discipline.
    

If we want an economy that serves people first, we must use cash, defend cash, and keep money from being turned into a control system.