PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
No Result
View All Result

Are You a Secret Cash Whisperer?

Tim Sloane by Tim Sloane
January 2, 2019
in Analysts Coverage, Cash
0
Cash whisper

Cash whisper

1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

This article in CUInsight by Lorraine Ranalli starts with a confession; she is a “cash whisperer” who makes a case for cash. I am also a cash whisperer and believe cash delivers value to our society. The case Lorraine makes for cash is the societal cost associated with card fraud:

“In a society that appears to be rapidly moving away from cash, every now and then a small voice emerges making the case for cash. Being a cash whisperer, I tend to take heed to such arguments, with an open mind, of course. From the practical “you never know when you may happen upon a truck stop that only accepts cash” to the hysterical “the grid could collapse causing panic and pandemonium,” and every argument in between, there are plenty of reasons for physical currency to remain in circulation.

Spend a few moments observing the checkout at any retail outlet or the traffic in and out of a financial institution’s physical branch and it will be clear, however, that the amount of paper cash being exchanged has been reduced. Heck, have an impromptu lunch with a group of friends or coworkers and notice how few carry cash. Restaurants and retailers are responding to the trend by offering online preordering options and making it easier for consumers to swipe a debit or credit card at the register.

Financial institutions and credit card companies will not be happy with the case for cash that I’m about to divulge.

The flurry of activity around charge cards is a boon for the credit card industry and for FIs. Unfortunately, it is also a boon for thieves, a fact about which FIs are well aware and equipped to handle. Consumers are becoming more and more accustomed to the process, too. Rare is the occasion when a clerk requests identification from a cardholder, and frequent are the occasions when cardholders’ accounts are compromised.

Fraud prevention is set up to recognize, report or question, and then halt unusual activity. In most cases, the cardholder is not held responsible for fraudulent purchases. In cases where the charges can be stopped, the retailer takes the hit for the fraud. In other cases, the FI or card issuer eats the loss. Or do they? 

Actually, all consumers take the fall for fraudulent credit card activity.

Let’s unravel the scenario. Credit card companies charge retailers for the ability to take credit. As the card companies’ cost to do business increases, so too do their fees. Most retailers pay the fees or risk losing customers. As retailers’ cost of doing business increases, so too do their prices.

Online retail aside, the solution is yet another case for cash. By increasing the use of cash at checkout, we drive down the opportunity for credit card fraud. Yes, what is old is new again. The solution is not favored by credit card companies for obvious reasons, and it is unpopular among some consumers and retailers.

You can read the full CUInsight article here

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

Tags: Cash
1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eBay’s Upgraded Approach to Payment Processing Meets the Demands of Modern Consumers

    eBay’s Upgraded Approach to Payment Processing Meets the Demands of Modern Consumers

    January 22, 2021
    It’s Time for Retailers to Offer the Best Gift of All In-Store: Digital Gift Cards

    It’s Time for Retailers to Offer the Best Gift of All In-Store: Digital Gift Cards

    January 21, 2021
    Building C-Store Customer Loyalty Programs With Relevant Rewards

    Building C-Store Customer Loyalty Programs With Relevant Rewards

    January 20, 2021
    How PayPal Achieves High Authorization Rates

    How PayPal Achieves High Authorization Rates

    January 19, 2021
    Explaining the Bill Payment Ecosystem

    Explaining the Bill Payment Ecosystem

    January 15, 2021
    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    January 14, 2021
    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    January 13, 2021
    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    January 11, 2021

    Connect With Us

    • Advertise With Us
    • About Us
    • Terms of Use
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Events

    © 2021 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result
    ×

    Login

    Forgotten Password?

    Lost your password?
    | Back to Login

      Subscribe!

      Thank you for visiting PaymentsJournal! Please subscribe to our newsletter to receive consumer data insights and daily analysis from Mercator analysts and industry experts.

      ×

      How will COVID-19 Effect the Payments Industry?

      Check out our latest:

      – Consumer Data – Complimentary Reports
      – Podcasts – Mercator Analyst Commentary
      – Industry Opinions

      ×

      WEBINAR:
      How Digital Acceleration Will Affect Payment Industry

      Please join us for this panel discussion on addressing the challenges to pave the way to payments innovation and profitability and gain insights on the key trends and challenges impacting the payments landscape in North America.

      REGISTER