This highlights the crucial role cash continues to play in the UK retail sector, as almost a quarter of a million (230,000) retailers across the country declare "cash is still king".

In contrast, outdated cheques are preferred by less than one in eight retailers (12 per cent) and even debit cards are the chosen method by only one in four (24 per cent).

Alliance & Leicester Commercial Bank's comprehensive Cash Survey also reveals that almost two thirds (63 per cent) of small and medium retail businesses view dealing with credit cards and cheques as too expensive and half (49 per cent) think cash is both cheaper and easier to manage.

The humble coin and note is still very much the lifeblood of the retail industry with 53 per cent of businesses handling more than £100 in cash every day. Furthermore, almost one in three (31 per cent) of retail companies surveyed say that if customers stopped making cash payments it would have a negative effect on their business, with a whopping 49,000 fearing they would be forced to close down.

Russell Carter, Head of Cash Marketing at Alliance & Leicester Commercial Bank, said: "Our research highlights that cash continues to play a critical role in the retail industry. Nearly a quarter of a million retail businesses in the UK prefer to deal in cash and 170,000 retailers rely on it to maintain a successful business, thereby proving that cash very much remains the lifeblood of the industry.

"With monthly cash intake figures for the industry as a whole reaching the £8 billion mark, it's important that retail businesses choose a bank account most suited to their needs and avoid unnecessary cash handling charges."