Few among us would not have felt the sting of a surcharge for using debit and credit cards. Whether it’s a few cents for a takeaway coffee or bigger fees for larger transactions, the charges get attention and attract ire because they are a hit to the hip pocket that can be seen and counted.

Less obvious is the cost of cash, which is a growing concern for the federal government. The problem, as senior economics correspondent Shane Wright pointed out, is that cash has never been free, and security in the form of armed vehicles and guards does not come cheap. The struggling cash transit business Armaguard this year needed a $50 million bailout from the big banks, retail giants and Australia Post as its future was at risk.

Cash can cost retailers 3.9 per cent of a product or service, which Commonwealth Bank chief executive Matt Comyn has pointed out is more than double that of an electronic payment. There is an irony that the cheaper, instant transfer of electronic ones and zeroes comes on top of the expense baked in to a system that has been built up over centuries.

Treasurer Jim Chalmers has taken the pulse but is not about to declare cash dead just yet. On Monday, he announced that large and medium retailers that sell groceries and fuel would have to accept banknotes and coins under a plan to keep them in circulation. Treasury will consult on which businesses the mandate should cover before the rules come into effect from 2026, but Chalmers indicated he was not keen for small businesses to face penalties for refusing cash.

The idea of a cash-free future has appeal and Australians are voting with their digital wallets as more transactions are electronic. There is also an argument for rationalising smaller denominations as we look towards the eventual end of cash: more than 30 years have passed since 1¢ and 2¢ coins were abandoned, and the 5¢ coin should be in the government’s sights. But there remain at least 1.5 million Australians who prefer to use cash, and mandating it be accepted for basic groceries and fuel seems sensible.

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The other reason for keeping cash around is that our IT infrastructure is not invulnerable. The global CrowdStrike outage sent the world into chaos in June as air travel was disrupted, hospital systems were frozen, payments systems and banks and other financial services were hit. About 10 million people were affected by the Optus outage a year ago, which dealt a blow not only to the telco’s customers but also others who could not pay via eftpos until the problem was sorted.

Few will miss cheques when they are gone, and Chalmers announced on Monday that they will no longer be accepted from September 30, 2029. One day, cash too will be extinct. But until the replacement is perfect, it will pay to keep it around.

Bevan Shields sends an exclusive newsletter to subscribers each week. Sign up to receive his Note from the Editor.