Robert W. Hahn. Conference on "The Cashless Society: Revolution or Evolution?" Event Proceeding 04-27. Dec 2004.
Taken together, calculations suggest that the move to a cashless society is probably beneficial
Table Private and Social Marginal Costs for Grocery Transactions
Calculated at the Average Grocery Cash Transaction Size of $11.50 ($)
Cash Check Credit Signature PIN
Non- Verified Charge Debt Debit
Verified
Merchants 0.30 0.42 0.44 0.61 0.68 0.57
Consumers 0.65 0.70 0.65 0.46 0.46 0.55
Central Bank 0.004 0.03 0.03 0 0 0
Commercial Banks 0.07 0.12 0.12 0.32 0.28 0.28
Sum of Marginal Costs 1.02 1.27 1.24 1.39 1.42 1.40
Social Marginal Cost 1.01 1.18 1.05 0.96 0.92 1.00
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