this post was submitted on 28 Nov 2023
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[–] [email protected] 21 points 1 year ago (3 children)

Just saw a sign in my bakery today begging people to pay by card because getting small coins from the bank is hard and expensive.

TBF here in Belgium Bancontact has a local monopoly (about 1 % flat fee, no fixed cost per transaction; that seems fair and intuitively cheaper than holding, insuring, depositing cash, dealing with employees skimming off the top, of the time lost counting bills).

Also the government heavily incentivizes electronic payments because those can't be pocketed without paying VAT. That's a MONUMENTAL amount of tax fraud being chipped at by the progressive disappearance of cash.

[–] [email protected] 6 points 1 year ago (1 children)

That's the real crux, banks charge businesses to deposit cash. They do it in such a way that there's no way to escape their ever-increasing fee percentage.

The mattress solution is more and more appealing, imo.

Also the government heavily incentivizes electronic payments because those can’t be pocketed without paying VAT. That’s a MONUMENTAL amount of tax fraud being chipped at by the progressive disappearance of cash.

Unfortunately I think the amount of cash tax fraud that exists is far more reasonable than the amount of straight up fraudulent, yet "legitimate", expenditure that governments allow. See, for example, covid PPP loans.

[–] [email protected] 2 points 1 year ago

Write offs, PPP loans, deferrals, and all the other accounting tricks that the government carved out for the primary benefit of the wealthy are definitely a bigger loss of tax revenue. One guy writing off a personal vehicle for his personal business is probably what a busy restaurant makes in 4 months of cash purchases. Suppliers and distributors are also unlikely to deal with large volumes of cash just as a matter of practicality and risk, and the fact that you can’t have a functioning business with employees that need paychecks without going through banks which go through the government, unless you’re operating with an entirely under the table staff which is just begging for trouble.

[–] [email protected] 4 points 1 year ago (2 children)

Seems like an easy fix for a business, just change their prices so that they don't have to use coins. Make everything an integer number of dollars. If the items are too cheap to round up, encourage a three for two deal or something like that.

Sales tax doesn't change that frequently. It's easy for a business to predict and account for it when setting their prices.

[–] [email protected] 11 points 1 year ago

... the euros' lowest paper bill is 5€. 1 € and 2€ coins are bulky pieces of shit too.

And a bakery is the worst affected kind of business even if there was a 1€ paper bill. A loaf of good bread is 1.40€, if you round up it's way too expensive and if you round down they may not even make a profit. Can't exactly buy 3 loaves of bread either unless you got a family of 6 to feed.

[–] [email protected] 1 points 1 year ago

Unfortunatley that won't work, banks charge businesses a percentage for deposits.

[–] [email protected] 2 points 1 year ago

The people insisting on using cash are the ones with a big pile of it, with origin dubious to unknown. Anti tax evasion is the best part of digital banking. Threats to privacy is the other side of that coin unfortunately...