Bank of Canada took a surveey to have a closer look at how candian retailers and shoppers pay for their good and services. The survey found almost half of sales was processed through cash over credit and debit cards.
The report also said majority of debit cards was used for medium level transactions while cosumers used their credit card for large value transactions.
“Merchants in Canada almost universally accept cash. While nearly all large businesses accept debit and credit cards, only two-thirds of small or medium-sized businesses do. Our analysis suggests that merchant’s perceptions and the costs they incur from accepting payment methods are not the only factors that determine which methods they accept.” – the bank said in a statement.
The bank said people prefer to use cash even in places where they can use debit and credit cards.
“We find that cash is still widely used, especially for small-value transactions, even at large businesses that accept cash and cards,” the bank said
This has increased the average transaction level for credit cards. For cash the average transaction accounted for $8.04 when compared with $28.33 for debit cards. Credit cards are however in different pool with whopping $43.85 per swipe.
“The objective of the 2015 Retailer Survey on the Cost of Payment Methods (RSCPM) was to collect information from merchants about the payment methods they accepted at the POS in 2014 and the costs of accepting
these methods, with a focus on cash, debit cards and credit cards” – the bank said.
The bank added that credit usage was more when companies offered reward points.