Cash Payments Three Times More Expensive Than Card Payments for Businesses

The costs for businesses to process cash payments at the point of sale have significantly increased in recent years, rising from €0.29 in 2017 to €0.61 in 2023. In contrast, the costs for processing card payments have remained stable at €0.17 during the same period. This means that a cash payment now costs businesses more than three times as much as a card payment. These findings come from a periodic study on point-of-sale payment costs conducted by Panteia on behalf of the Betaalvereniging Nederland (Dutch Payments Association) and Dutch retail sectors, including retail, hospitality, fuel stations, and mobile trade.

Costs vary between sectors. For example, hospitality businesses incur significantly higher costs for cash payments than retailers, and this gap has widened between 2017 and 2023. Efficient cash handling processes in the retail sector contribute to this difference.

The rise in contactless payments has made card payments faster, keeping their costs low. Overall, the average cost per point-of-sale payment has increased by only 22%, as the proportion of card payments has risen while the number of cash transactions has declined.

One reason cash payments are more expensive is that they require more manual handling, leading to higher labour costs. Large retailers and fuel stations with high turnover often employ methods to improve cash-handling efficiency, while smaller hospitality businesses and market traders with lower turnover do so less frequently. This less effective way of cash-handling means that cash payments are relatively more costly for these businesses.

“Our periodic study for Betaalvereniging Nederland provides valuable insights for point-of-sale businesses seeking to optimise costs and improve efficiency in their payment systems.” — Researcher Marianne van Marwijk-Hol

Download the full report (in Dutch) here.