Credit card fees vs. Cost of Using Cash in Poland

I had a discussion with one of my English classes yesterday regarding fees associated with using credit cards at markets, shops, etc. One of my students pointed out that using cash also bears inherent costs (accounting, transport to banks, etc) - it was an astute observation, so I would like to learn the costs of using cash in a typical business (say, Kaufland). A Google search was fruitless.

Does anyone have knowledge of such costs? I am pretty sure that credit card fees are higher than using cash, but I'd like to know the facts (and bring numbers to class next week). Thanks!

not really. but, a lot of cash is moved by security firms like Group 4

Someone must count the money (or oversee machines that do this), then they must pay to deliver the money to a bank. There are probably bank fees as well. I can't think of any other possibilities, but perhaps someone else can...

There are indeed fees from banks for paying in money if you're a business. And for taking out money. And for giving change. There's also the risk of being robbed. And the risk of being given forgeries.

Other than the 2-3% that a credit card company charges a firm, what are some other financial drawbacks of using credit? Fraudulent cards are definitely a possibility, but those costs generally affect the credit company, not the firm. Are there additional factors that contribute to a firm's losses when customers use credit cards?

Overall, do you think the costs associated with cash are equal to or greater than those of credit? My instinct says credit is more expensive than cash, but I'm not altogether convinced of that now. I realize other factors such as time and convenience should be factored into the equation, but those are different topics for another day.

The need to be connected to the card company's system (not free) and the actual machines themselves (also not free).


Time is not only money but something which can lose a business customers. The coffeeheaven by my office is always busy just before 9 and the queue is made much worse by the fact that most people are paying by card and each transaction has to be authorised. If everybody paid cash, the queues would be shorter and thus more people would stop by to get something.

I agree wholeheartedly! On the other hand, my students pointed out the babcias that pay with change from their purses - this can also be a time-consuming endeavor. I wonder what the average time per customer is with credit cards vs. those with cash.

Although not related to the topic at hand, here's an interesting article about the quality of food purchases when using cash vs. credit card:

healthland.time.com/2010/10/21/study-paying-cash-not-credit-leads-to-healthier-food-choices/

Nothing more infuriating than a studenty kid making a small purchase with plastic. Virtual money.


Credit means it isn't actually yours. You are getting into debt that has to be and will be repaid with interest.

it's quicker to pay with real money than with a card in most cases (unless the attendant does not have the change)

actually two thirds of retail outlets in Poland don;t accept cards - Biedronka has a policy of not introducing card terminals in their stores and there must be a serious reason behind it - one big issue is the ammount of commision charged for card payments in Poland which is supposedly the highest in Europe and even ten times higher than in Finland - heard it on the news today - NBP (the central bank) eventually threatened that if the operators and banks don't lower the commission the NBP will do it arbitrally


while there is some odd shabby babcia in the queue who is slow to count her change payment with cash is twice as quick as with cards so it is actually all the card holders who hold the queue up - while it is not so important in big stores situated on the outskirts where people go to buy a trolley-holds of stuff and because the time to just scan all that stuff is so time consuming it is strinkingly visible in places like Harry pointed out

Did you happen to hear any numbers? The worldwide average seems to be 2-3%, so I'm curious what this number is in Poland. And where did you hear this? On the radio, TV, internet? If you have a link, please post it - I'd be most grateful!

btw think of bigger power outages - while I don't mind using a card I'd rather hard money remain the main means of payment in most situations

Part of the problem in Poland is the idiotic implementation of chip and pin in many stores, which slows things down tremendously.

- I heard it on Polsat News 24 hour news channel today -

the article more or less repeats it
newseria.pl/news/nbp_wypowiada_wojne,p1589590042
the commision is some 3 per cent on average but it's still a robbery i think

I could be wrong about the worldwide average - perhaps 3% is on the high side. I found information about Finland's interchange fees - they are below 1% on average. Perhaps this fee is regulated by individual governments - if so, why does Poland allow such high fees?

This thread has been most educational for me - thanks!

That's about normal in the UK - a range between 2-3% is normal for small retailers. Big retailers will be paying more like 0.2%, which is a bargain.