Cash pays the price as credit card is king

Consumers are most likely to reach for their credit or debit card to pay for items, using cash simply as a back-up option, a survey suggested today.

Only 31 per cent of people said using notes and coins was their preferred payment method, with 41 per cent saying they would choose to use a card if they could, according to the Payments Council.

Sandra Quinn, at the Payments Council, said: "Since decimalisation, the debit card has overtaken cash and we've now arrived at the point where one in three people prefer to shop online rather than in person.

"However, cash is still king for the small things, with 61 per cent preferring to pay for low-value items with coins and 16 per cent still keen on the purchasing power of a crisp bank note.