Changes to the new EU regulation on the legal tender of bank notes and coins will ensure people have a right to use cash in their everyday lives, an Irish MEP has said.

Fianna Fáil MEP for Ireland South Cynthia Ní Mhurchú has said she will support amendments to new EU laws that would stop businesses from refusing cash from customers.

On Breakfast Briefing, Ms Ní Mhurchú said she hopes cash will remain king for the foreseeable.

“I intend to certainly advocate for that, because I think everybody should have a choice - this is all about choice,” she said.

“I think everybody, and particularly the older population who prefer to use cash, I think they should have the right and the entitlement and the law should be in their favour if they want to go shopping in the local butchers or the supermarket or the coffee shop or when they're paying utility bills, or indeed, their hairdresser.

“I think cash is an important driver of economic growth for rural Ireland in particular.”

Card machine. Image: Alamy

Ms Ní Mhurchú said it’s not just older people this affects – it also seriously affects shop owners.

“Many of the small shop owners that I've spoken to throughout the constituency, there's a cost for small businesses with card payments and those transactions,” she said.

“We all know this but it’s no harm to reflect on the percentage of the sale that the shopkeeper loses.

“I understand from speaking with some of the business owners that credit card processing fees for payments are typically between 0.7% and a whopping 3.4% of the total transaction amount.

“Then moving to debit cards, it's less, but it's still a cost - it's between 0.4% and 1.7%.”

Euro banknotes, cash in a back pocket. Image: Alamy

Ms Ní Mhurchú said she uses both cash and card so she gets both sides of the argument.

“I do think that Ireland performs relatively poorly when it comes to financial and digital literacy and financial well-being and inclusion and all of those things, and that's why the choice is necessary,” she said.

Ms Ní Mhurchú said the law is clear that businesses are allowed to charge through cash only or card only once they make it known.

“I think the law says that once they make it known in their terms and conditions of the contract of purchase that you're entering into involves consideration, which is card only, consideration, meaning how you pay for it, it's absolutely legitimate,” she said.

“I have no difficulty with businesses who advertise that, who make it known to customers that this is card only, so the customer is completely clear, but it's very unfortunate if it's not made clear, and it's not obvious.

Man using his credit card at an atm for cash withdrawal. Image: Alamy

“It's unfortunate as well I see going through airports now, because I'm doing a lot of travel, going through airports and having to get payments right.

"Particularly even on a flight, it being announced by the airline that this is a card only flight… I just wonder where in the small conditions and terms is that made known to the purchaser of the airline ticket.

“I've yet to find it myself, but I think it's very unfortunate.”

Ms Ní Mhurchú said she is hoping the changes will be progressed over this year.

Counting cash. Image: Alamy