11 June 2007, 19:50 PM


  • Debit and credit cards now account for almost 64% of retail turnover, while cash accounts for 32% and cheques just two percent, according to new research from Visa UK and the Centre for Retail Research in Nottingham.

Visa UK managing director, Jose San Juan, said, “The experience of the UK retail community is a strong indicator of the general decline in popularity of cash and cheques in favour of a rise in card usage.

“While different types of business rely on different payment methods, it is interesting to note that even smaller retailers are seeing a decline in cash usage.”

The research also revealed that 53% of retailers expect a fall in the use of cheques, 37% expect a reduction in the use of cash, 66% anticipate an increase in the use of debit cards, while a 53% increase in the use of credit cards
is predicted.

Card payment now has the lowest handling costs of all payment methods, Visa claimed. Cash payments cost retailers 2.75% of receipts, cheques 1.96% and payment cards 1.1%, it said.