According to a new report released by the European Central Bank (ECB), the cash payments account for almost 50 percent of the total costs. As the most commonly used payment instrument, cash has, on average, the lowest social costs per transaction, at EUR 0,42 closely followed by debit cards with costs of EUR 0,70 to society. Cheques are the most expensive form of payment, with unit costs of EUR 3,55. However, in some countries, cash does not always have the lowest unit costs. In five of the countries covered, the costs were lower for debit cards. Such rankings depend on characteristics specific to each country’s payment system, on the market size and its development and on payment behaviour.
The study has been conducted by the ECB in cooperation with the central banks of Denmark, Estonia, Finland, Greece, Hungary, Ireland, Italy, Latvia, the Netherlands, Portugal, Romania, Spain and Sweden.
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