A new report from Aité Group argued that cash actually is more expensive than cards for retailers, a conclusion that drew fire and praise from foes in the battle over interchange fees.

“Tender Truths: The Real Cost of POS Transactions in the U.S.,” found debit cards the least expensive method of payment for merchants, costing significantly less per transaction than cash or cards.It broke down the costs of different payment types across three broad retail sectors: specialty retailers, quick service restaurants and convenience stores. In each case, according to Aité Group Senior Analyst Madeline Aufseeser, debit interchange capped by regulation offered the least expensive form of payment.

In brick and mortar stores of specialty retailers, for example, transactions on credit cards carrying a major brand (Discover, American Express, Visa or MasterCard) will cost 2.48% of the average transaction's value, the report said.