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Credit Card Falls 13% As Shoppers Avoid Debt

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http://www.bbc.co.uk/news/business-13920394

Credit card use fell last year as people turned to cash and debit cards to avoid borrowing, shopkeepers say.

The British Retail Consortium (BRC) which represents 90% of the UK's stores, say transactions involving credit cards dropped 12.9%.

The number of transactions involving cash also fell, although the average amount spent rose by 13% to £12.93. Debit card use jumped by 15.8%.

The BRC criticised the level of bank charges associated with credit cards.

It pointed out they are the most expensive payments they have to process.

On average in 2010, each retailer paid 1.7p per cash transaction to have the money transported and banked.

It said that the average charge for processing a credit card payment was 37.1p, compared with a debit card average of 9.2p.

Credit cards were used in just 10% of all transaction, but accounted to more than 44% of processing costs.

The costs involved with credit cards are a complete scam when you factor in it's all electronic. No wonder the banks want the proles to move to electronic money.

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http://www.bbc.co.uk...siness-13920394

The costs involved with credit cards are a complete scam when you factor in it's all electronic. No wonder the banks want the proles to move to electronic money.

http://www.theukcardsassociation.org.uk/files/april_2010_commentary.pdf

Where do they get this 10% figure from?

A cursory glance at the link shows 70% of all transactions are done on cards - one third of them Credit Cards!

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This is just due to people switching credit card for debit card , especially with online shopping.

It's far more convenient.

Surely it must be cutting into the profits of Mastercard & VISA though ?

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Across the sample size, this is probably a better measure of true inflation rather than a fundamental shift in consumer behaviour imo. Such large shifts in behaviour are unlikely in such a short period of time without a catastrophe.

Great call.

It feels about right, the sharp rise in input cost earlier this year is now starting to trickle through. No wonder they released the oil reserves. I wonder how much time it will buy them.

Edited by Jack's Creation

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The costs involved with credit cards are a complete scam when you factor in it's all electronic. No wonder the banks want the proles to move to electronic money.

I only take cheques and cash and pay no charges. If they get rid of checks i'll have to rent one of their card machines and will be charged for every transaction. Never had a problem taking a check, never had one bounce, never bothered to ask for cheque guarantee card number either.

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http://www.bbc.co.uk/news/business-13920394

The costs involved with credit cards are a complete scam when you factor in it's all electronic. No wonder the banks want the proles to move to electronic money.

The costs of running a credit card aren't all admin.

Bad debts and Section 75 payouts are a significant expense. Other forms of payment do not have this risk

tim

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Across the sample size, this is probably a better measure of true inflation rather than a fundamental shift in consumer behaviour imo. Such large shifts in behaviour are unlikely in such a short period of time without a catastrophe.

Alternatively, there could be a more pronounced switch to cash for smaller transactions thus skewing the average amount spent per transaction upwards.

It's pretty stupid to move away from cards to cash in order 'to help you budget' though as cards offer interest free periods of up to two months (as long as they are paid in full every month) and protection against faulty goods or non-delivery of mail order stuff. Sometimes additional stuff like travel insurance and air miles too. I can only conclude that large amounts of people have absolutely no ability to handle their finances and/or restraint when in control of a credit facility.

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Alternatively, there could be a more pronounced switch to cash for smaller transactions thus skewing the average amount spent per transaction upwards.

It's pretty stupid to move away from cards to cash in order 'to help you budget' though as cards offer interest free periods of up to two months (as long as they are paid in full every month) and protection against faulty goods or non-delivery of mail order stuff. Sometimes additional stuff like travel insurance and air miles too. I can only conclude that large amounts of people have absolutely no ability to handle their finances and/or restraint when in control of a credit facility.

As far as I know protection kicks in above £100.

If you get ripped-off claim back in full under "Section 75" :)

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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