Latest research dispels loose change cash myth

23.06.2005 Quarter of all cash transactions are for more than £80
New research from Alliance & Leicester Commercial Bank shows that over a quarter of cash transactions exceed £80 – dispelling the myth that cash has been relegated to small purchases.
The survey of UK businesses handling cash found that despite the much publicised growth in card payments, over one in four (26 per cent) of all cash transactions in the UK are for more than £80. Additionally, less than one in 10 organisations (eight percent) say that their average cash transaction is for less than £5.


Russell Carter, Head of Cash at Alliance & Leicester Commercial Bank, said: “The premise that retailers, hoteliers and other cash handling businesses are all about ‘loose change’ is a myth.  With over a quarter of businesses seeing typical cash transactions of more than £80, cash still has a major role to play. It is crucial that these businesses have the right cash handling facilities in place, to ensure that they are paying minimum fees and earning maximum interest on the cash they bank.”
 
Businesses in the London region are most likely to see more than £80 in the average cash transaction (33 percent).  Whilst only one in five (20 percent) businesses in the Midlands and Wales say their average sale is for more than £80.

How much cash would you say the typical cash transaction involves?	Base: All respondents
Less than £5	8%
£5-£10	13%
£11-£20	17%
£21-£40	21%
£41-£80	14%
More than £80	26%
Don’t know	2%

Alliance & Leicester Commercial Bank is a market leader in cash management, handling more than £1 in every £5 of High Street cash.
 
For further details about Alliance & Leicester Commercial Bank, customers should visit www.alliance-leicestercommercialbank.co.uk or telephone 0800 587 0800.
20 June 2005