Businesses that ask for cashless payments are facing backlash and boycotts from a section of the community that believes refusing to take cash is an infringement of their personal rights.
Key points:
- Some consumers are driving a campaign against businesses for going cashless
- Mike Palmer started a Facebook group that encourages boycotts of cashless businesses
- There are currently no laws to stop businesses from refusing cash payments
Facebook groups such as Call Out Cashless Businesses, which has attracted about 9,000 members since it was created about three weeks ago, encourage members to name and boycott businesses that do not accept cash payments.
Melbourne resident Mike Palmer, who created the group, said his opposition to cashless businesses was about “freedom of choice”.
He said he wanted the group to create enough pressure from consumers to discourage businesses from moving to cashless payment.
“We need to teach these businesses ‘Hey, absolutely. It’s your choice — you can make that choice to refuse cash’,” he said.
“But all choices in life come with consequences and if that’s how you’re going to be, then you’re going to lose customers.”
Some campaigns arguing that cashless payments are a denial of people’s freedoms and rights started to emerge at the height of the COVID-19 pandemic in 2020.
‘Right to access and use cash’
With an increasing number of businesses refusing to accept cash for hygiene reasons, online petitions were launched including one to protect the “right to access and use cash” by law.
There are currently no laws to stop businesses from refusing cash payments.
One petition with more than 117,000 signatures started in 2020 said: “Shops and retailers who do not accept cash deny the public the freedom to choose how they wish to pay for goods and services”.
Mr Palmer said he was concerned that what started as a COVID-19 measure would continue to the detriment of the public.
He said he was aware that some business owners preferred not to accept cash for convenience and security reasons.
“Just because something is harder, a little bit more difficult doesn’t mean you stop doing it,” he said.
“It’s still legal tender, and people still want to use cash.
“It’s the government that wants us to stop using it so they can control it.”
Fremantle bar and music club Freo Social is among the businesses facing backlash because of their cashless policy.
Business owner surprised by backlash
An online post announcing the change on the club’s Facebook page in early May drew about 600 comments, including many expressing anger and disappointment and vowing to boycott the business.
“Boycott. A cashless society is only going to be damaging. You clearly love control,” read one of the comments.
“We regularly attend gigs here but you’ve lost us if you do this,” said another.
Owner James Legge said feedback on the decision had been “overwhelmingly” positive, but he was surprised by the level of backlash from some customers who were unhappy about the change.
“There are some very strong opinions out there on cashless,” he told ABC Radio Perth host Nadia Mitsopoulos.
“I know it’s a very emotive issue.
“Cash has been around forever and change can be difficult for some people.”
Mr Legge said cashless payments helped improve the speed of service for customers, and improved staff health and safety.
“Not handling cash, particularly when COVID and flu are rife … just cuts down on that risk to staff,” Mr Legge said.
“And also transporting cash at the end of the night or the next day, to take it to the banks, that extra risk for staff is taken away.”
Residual effect
He said before the COVID-19 pandemic about 15 to 20 per cent of his customers were still using cash, but that number had dropped to below 5 per cent after the virus led to a rise in cashless payment for hygiene reasons.
The Australian Banking Association says cheque payments, too, have declined to about 0.2 per cent of all transactions.
The federal government announced this week it will move to phase out cheques by no later than 2030.
Chrissie Maus, the chief executive officer of the Fremantle Chamber of Commerce, believed the negative response linked back to COVID-19 restrictions.
“You’ve got to remember the pandemic was only a minute ago, and we had so many of our choices taken away,” she said.
“So this is probably a bit of leftover residue from the pandemic of people going: ‘No, but I want to do this!'”
She suspected there were also concerns among customers about having to pay bank fees for cashless transactions.
“This is going to be a decision for all our businesses across all sectors, and not just in Fremantle, to really think about is it worth taking away the option?” Ms Maus said.
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