The expensive nature of handling cash needs to change.

In the ongoing debate over surcharges imposed by retailers on those who pay with cards or electronic devices versus physical cash, I’ve lost count of how many times I’ve had to explain that money isn’t free. You might hand over $5 for a pie or coffee, while the customer next to you pays $5.05 due to a 1% surcharge for using tap-and-go. However, that $5 already includes the significant cost for retailers to handle cash.

From maintaining a cash float in the register to daily cash deposits at the bank, there’s an unseen cost associated with handling physical money.

One of the largest hidden expenses of cash is security. Strict protocols are required for moving cash, including secure vehicles, armed guards, and proper training.

Transporting cash over long distances is also expensive. Delivering cash to regional or remote locations adds to the cost, while transferring electronic money is nearly costless.

Card surcharges are immediately noticeable; we feel them every time we tap. But the hidden costs of cash often go unrecognized.