Less cash makes tech critical

Fed members have warned their sales are increasingly vulnerable to tech outages as more customers move from cash to card.

Fed Yorkshire district vice-president Ian Smith has had repeated internet outages this month, making card processing impossible for five days of trading. “It’s costing £500 to £600 a day. In the past, people would simply pay in cash, but so few customers carry anything other than cards, and we have no cash machine close by for customers to use.

“All we can do is remind people that’s it’s best to carry a bit of cash around with them just in case.”

For a three-day outage, Smith was offered just £17 compensation from his internet provider, Three.

It was a similar story for Fed members impacted by an issue at card payments provider Paymentsense on 16 May.

Stores using broadbandpowered card terminals have reported investing in ‘back-up’ devices from companies such as LoPay, Doji and Sum-Up.

However, Smith claimed the contingency plan was “unaffordable” for many smaller stores.

Data from UK Finance shows cash now accounts for just 15% of all transactions, though the figure in the average convenience store or newsagent is higher and influenced by the age and affluence of the customer base.

Fed chief operating officer Graham Stafford has said the plan to replace the Fed’s two most senior committees with one senior committee was “moving forward”.

The so-far-unnamed group of 28 retailers will replace the Fed’s national council and national executive committee, which collectively seat 38 retailers.

The move is designed to cut cost and boost the decision-making speed at the Fed.

Each district is to receive one seat for every 600 Fed members, there are also seats for the national, vice- and deputy vicepresidents.

RN understands the members that will make up the committee have now been confirmed.

Stafford told RN: “Preparatory work undertaken by Fed staff prior to conference means the transition will be as seamless as possible.”

The Fed promotes insurance

The Fed is promoting car, van and home insurance to members through an affiliate partnership with Quotezone.co.uk.

Members receive a £25 Love2Shop voucher when they take out a policy through the Fed’s website, while the Fed also receives a commission for each policy purchased.

Messages sent from the trade group last week said: “You can compare home, car and van insurance quotes from online and see how much you can save.”