[therealmarv]

I've read once that the break even cash vs. electronic payment is at around 5 Euros. If you pay more than 5 Euros it's cheaper at the end of month to use electronic payment.

Cash gets more and more expensive (exponentially) on the amount of money (security, deposition etc.). On electronic cash it's like a flat line.

[ballenf]

Wouldn't it be more accurate to say that it's cheaper to take one or the other, but if you mostly take credit cards then there is a marginal cost to also accepting cash? And vice versa. However:

- If I'm doing a large cash business then the next $5+ costs me basically nothing.

- However if I'm doing a mostly credit card business, the next $5 will cost me the same as the first $5.

With that, I think the analysis you read was funded by payment processors.

[therealmarv]

It's a good mind trick to look on a single additional transaction. But you are also not thinking about all the costs you have per month for storing, securing, exchanging cash.

But to correct myself: This 5€ break even is on a macroeconomic level on all parties. Cash is more expensive on this level when you spend more than 5€ on a single transaction.

Just one example of the other party: the end consumer also cannot get cash for free (even when he get's it free from the ATM, there are costs the bank has and maybe you pay them indirectly).