Stores refusing to accept cash have left shoppers unable to buy basics such as groceries, according to a councillor.

A handful shops in Witney have declined payments using banknotes and coins, said Witney councillor Andrew Coles.

The businesses include Gail's cafe, the Part and Parcel pub and UE Coffee Roasters as well as Burford Garden Centre.

Mr Coles said: "One resident who contacted me felt so strongly about it that he refuses to shop or support any business that won't accept cash.

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"The matter came to head with last week's [Microsoft] IT outage which left some shops and businesses unable to take card payments and were entirely reliant on customers paying with cash.

Sainsbury's could not accept cards during an IT outage in May (Image: Oxford Mail)

"There was another incident last May when Sainsbury's had a glitch with faulty card terminals which affected some same-day deliveries and in-store purchases.

"I really do understand and share people's concerns about being able to pay with cash, after all banks, building societies and post offices are an important part of any thriving High Street and town centre.

"It should be up to customers to decide how they pay," he said.

The closure of bank branches is speeding up the move to a cashless society too, said one local resident.

Witney still has most of the big-name banks and building societies although HSBC no longer has cashiers but communities such as Carterton and Woodstock have seen their banks close.

Shaun Harley, from Carterton, said using cash in the town can be "a non-starter".

He said: "We have already lost all our banks. There is only one ATM in the town centre and the small post office in Asda. Getting cash, particularly at the weekend, is virtually impossible.

Gail's refused cash payment but gave a coffee and cake for free instead (Image: Ed Nix)

"I've asked questions about a banking hub but have had no success. Apparently three cash machines - Co-op on Shilton Park and Brize Meadow together with the Post Office - is sufficient for 20,000 people."

Chris Fleming added: "I wanted to go to the car boot in Witney on Sunday but the ATM at Asda had no cash and the store doesn't give cashback.

"I don't want to spend my day off driving around looking to get cash.

"The old Nat West is a pizza takeaway and the Barclays is a betting shop. It's like the infrastructure has been gutted."

Some shops refuse to take cash to reduce the risk of fraud or the time and expense involved in counting up and banking.

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Richard Martin, chairman of Witney Chamber of Commerce said "while it is not our place to tell traders how to conduct their business, we certainly believe that shops should take cash if they possibly can.

"Of course, we recognise that the closure of so many bank branches means that dealing with cash receipts can be problematic, we do feel that traders might do best to find a way round this problem rather than stop taking cash altogether."

He added: "On a personal note, a couple of weeks after Gail's opened in the Market Square, I went in and ordered a black coffee and a cake, which was duly prepared and put on the counter in front of me.

"I offered a £10 note in payment, and was told they didn’t accept cash. I said I didn’t have a card, and was told: ‘Well, you’d better have your coffee and cake free.’ And I very gratefully accepted."

Gail's, the Part and Parcel pub , UE Coffee Roasters and Burford Garden Centre were contacted.