You should use cash to pay for things when possible.

from JoeUser Forums

 

I felt really good when I read gHacks about this topic, since it’s something I’ve been doing for years.

There are two basic situations: The first: You’ve decided that for the type of purchase you’re making, it’s better to have a direct connection to the brick and mortar merchant, and the second: You’ve decided that the discount or local availability dictate you shop online.

For the second, this article doesn’t apply. For the first, there are several ways to pay for things. I maintain that for these, there are five good reasons to use cash, and not a card.

1. Most folks don’t keep careful track of their card purchases and digital payments. This tends to cause budget overages. With cash, all you can spend is what you have with you. It’s easier to keep track of cash:

“A Dunn & Bradstreet study found that people spend 12-18% more when using credit cards than when using cash. And McDonald's found that the average transaction rose from $4.50 to $7.00 when customers used plastic instead of cash.” – SeekingAlpha

Worse, the psychology of credit cards make it easy for you to overspend (and credit card companies like that).

2. Fees and commissions – While you probably don’t have to pay these, merchants do. Unfortunately, that’s reflected in the price you pay for the item. With cash? Never, unless you get it from an ATM (never advisable for monetary and security reasons).

3. Control – You give up control when you use a bank to keep and guard your money, but you give up even more when cash isn’t used.

4. Privacy – Cash purchases can’t be tracked (except by the actual, physical receipt). With card purchases, data is stored and anyone can access/purchase that data.

5. Security – While somewhat related to privacy, with a card, your data is stored at least until the payment is confirmed. That makes it vulnerable at least for a period of time. There are also companies which store the data for a longer period to extract data to sell onward. If you don’t believe me, ask Home Depot, Target, etc. Besides those, the person behind you on line can scan the keypad and take an infrared picture of it and easily obtain your PIN. Btw, there’s a way to protect yourself from that (Here: Gizmodo). There are also other ways to steal your data at the register.

So, while I doubt you’ve been convinced, you still got the low down.

Sources:

http://www.ghacks.net/2014/09/19/why-i-pay-in-cash-and-why-you-should-too/?_m=3n%2e0038%2e1372%2ehj0ao01hy5%2e1f5l

others linked in the article.

80,907 views 31 replies
Reply #1 from Elemental Forums Top

I have never examined the studies about cash vs digital payments.  I have used cash for most things for a very long time.  I even use money orders for some purchases to isolate that data stream (unwanted future sales pitches, linking their data base to my personal info, etc).  I made this change about 10 years ago.  I got tired of 'gotcha' aspects of credit cards, and the loan-sharking level of 'fees' associated with same.  Life is much simpler and less stressful since I acknowledged my penchant for overspending when using credit - and switched to doing most transactions with cash. 

Reply #2 from WinCustomize Forums Top


2. Fees and commissions – While you probably don’t have to pay these, merchants do. Unfortunately, that’s reflected in the price you pay for the item. With cash? Never, unless you get it from an ATM (never advisable for monetary and security reasons).
End of quote

Good post, but....

 

This is the only point I have trouble with.

I pay the same price in cash as the guy behind me is paying for the same item using a debit/credit card.

 

He pays .89 for a Snickers bar, I pay the same.

 

Now, I agree that the merchant probably charges more because of credit cards/debit cards, but as a cash user, I still pay the price.

 

Some merchants give pennies off for using cash, mostly gas, and some have set limits on how little you can spend using a card.

Example: A local store here has a sign that states you must spend at least 5 dollars if using a card.

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Reply #3 from WinCustomize Forums Top

There are a few stores here that do the same thing, set a minimum amount if using a card. What bullshit.

Reply #4 from WinCustomize Forums Top

Quoting RedneckDude, reply 2

He pays .89 for a Snickers bar, I pay the same.
End of RedneckDude's quote

So that's why your sugar isn't under control, mister! JK.

The price should actually be lower for cash, and is in some places. Others don't charge the lower price to make as much as they can.

Moral of the story? You can't hack money. No one knows it's your Geo. Washington if it's rag. If it's a card...they make money off you by selling your data as well.

Reply #5 from WinCustomize Forums Top

Quoting DrJBHL, reply 4

The price should actually be lower for cash, and is in some places. Others don't charge the lower price to make as much as they can.
End of DrJBHL's quote

I have never seen a store/merchant that charges less for cash, except when purchasing gas.

Reply #6 from Elemental Forums Top

I have been to faire stores where they will charge lower prices as it directly affects them how much they get charged for credit card usage rates.  Larger stores just absorb the cost and raise general prices to compensate.  Also at smaller stores you can haggle using cash versus larger stores will tell you the price is the price and tell you to politely take a walk if you try to haggle, at least most of the time.

Reply #7 from Sins Forums Top

Quoting RedneckDude, reply 2



2. Fees and commissions – While you probably don’t have to pay these, merchants do. Unfortunately, that’s reflected in the price you pay for the item. With cash? Never, unless you get it from an ATM (never advisable for monetary and security reasons).



Good post, but....

 

This is the only point I have trouble with.

I pay the same price in cash as the guy behind me is paying for the same item using a debit/credit card.

 

He pays .89 for a Snickers bar, I pay the same.

 

Now, I agree that the merchant probably charges more because of credit cards/debit cards, but as a cash user, I still pay the price.

 

Some merchants give pennies off for using cash, mostly gas, and some have set limits on how little you can spend using a card.

Example: A local store here has a sign that states you must spend at least 5 dollars if using a card.

End of RedneckDude's quote

 

I Australia the guy using card will pay less. Because for some stupid reason our 1 and 2 cent coins are no longer in circulation.

That means something for 89 cents will be 89 cents via card, but if you pay cash it will be rounded up to 90 cents.

Reply #8 from WinCustomize Forums Top

Quoting RedneckDude, reply 5


Quoting DrJBHL,
reply 4

The price should actually be lower for cash, and is in some places. Others don't charge the lower price to make as much as they can.



I have never seen a store/merchant that charges less for cash, except when purchasing gas.

End of RedneckDude's quote

The exception proves what I contend. 

And so what? Aren't the other 4 reasons enough for you?!

Reply #9 from WinCustomize Forums Top

Quoting DrJBHL, reply 8

Aren't the other 4 reasons enough for you?!
End of DrJBHL's quote

 

Quoting RedneckDude, reply 2

Good post, but....

This is the only point I have trouble with.
End of RedneckDude's quote

That was agreeing with all but one point.  ;)

Reply #10 from Elemental Forums Top

Quoting RedneckDude, reply 5


Quoting DrJBHL,
reply 4

The price should actually be lower for cash, and is in some places. Others don't charge the lower price to make as much as they can.



I have never seen a store/merchant that charges less for cash, except when purchasing gas.

End of RedneckDude's quote

 

actually, 20 years ago, it was quite common to have a 'cash' discount.   alas, those days a re long gone.

Reply #11 from Sins Forums Top

Quoting ElanaAhova, reply 10


Quoting RedneckDude,
reply 5






Quoting DrJBHL,

reply 4


The price should actually be lower for cash, and is in some places. Others don't charge the lower price to make as much as they can.



I have never seen a store/merchant that charges less for cash, except when purchasing gas.



 

actually, 20 years ago, it was quite common to have a 'cash' discount.   alas, those days a re long gone.

End of ElanaAhova's quote

Some places in Australia still do that, mostly electronic/white goods stores and some furniture places.

Reply #12 from Elemental Forums Top

My main problem with cards is that some places charge you x <currency> extra for using cards. I learned some years ago that this is due to stores with cardmachines have to pay monthy or so for having them!!

I thought cards were invented and spread so shopping would be safer but i's obviously combined with making moeny

Reply #13 from WinCustomize Forums Top

Quoting Campaigner, reply 12

I thought cards were invented and spread so shopping would be safer but i's obviously combined with making moeny
End of Campaigner's quote
  ....Just follow the bread crumbs, * almost* everything is about making more money...

Reply #14 from Elemental Forums Top

Quoting Campaigner, reply 12

My main problem with cards is that some places charge you x <currency> extra for using cards. I learned some years ago that this is due to stores with cardmachines have to pay monthy or so for having them!!

I thought cards were invented and spread so shopping would be safer but i's obviously combined with making moeny
End of Campaigner's quote

This may be a breach of contract on their part. It should be explicitly forbidden by the supplier of the card system in use.

 

The only time I use cash is when there's no other choice. Hell, even the hot dog cart accepts cards nowadays. I use it because it's convenient and provides much better opportunities to see how much money you actually spend. If you use cash, I doubt you can be specific down to the cent on how much money you spent on food the last month/year.

Reply #15 from Elemental Forums Top

except unless everyone and dog pays by cash, the merchant will still be forking out for the card fees. they ain't going to be lowering the "increases" due to cards.

 

i believe there are court cases against the likes of visa on the fees they charge (at least in europe). whilst i don't know how much they charge the merchants, whether it's a percentage or flat fee per transaction (on top of any periodic subscription) it would make sense that the lower the price of a transaction, the more costly it is to process it by card (relatively speaking). hence the minimum transaction fee in places.

 

places that charge less for cash nowadays... are less likely to be shops, but rather some cowboy who doesn't pay tax for a job. no cheque/card, no receipt, no records, no tax. or however they cook their books.

Reply #16 from Elemental Forums Top

Quoting Heavenfall, reply 14


Quoting Campaigner,
reply 12

My main problem with cards is that some places charge you x <currency> extra for using cards. I learned some years ago that this is due to stores with cardmachines have to pay monthy or so for having them!!

I thought cards were invented and spread so shopping would be safer but i's obviously combined with making moeny



This may be a breach of contract on their part. It should be explicitly forbidden by the supplier of the card system in use.

 

End of Heavenfall's quote

 

I've heard/read that as well but I understand the stores who do it. Paying 5kr or however much just for someone to be able to use their card and not making anything on that sale is idiotic!

 

If it's forbidden to make it more expensive for using cards then they should be allowed to make it cheaper to use cash  :)

Reply #17 from WinCustomize Forums Top

Quoting Heavenfall, reply 14


Quoting Campaigner,
reply 12

My main problem with cards is that some places charge you x <currency> extra for using cards. I learned some years ago that this is due to stores with cardmachines have to pay monthy or so for having them!!

I thought cards were invented and spread so shopping would be safer but i's obviously combined with making moeny



This may be a breach of contract on their part. It should be explicitly forbidden by the supplier of the card system in use.

 

The only time I use cash is when there's no other choice. Hell, even the hot dog cart accepts cards nowadays. I use it because it's convenient and provides much better opportunities to see how much money you actually spend. If you use cash, I doubt you can be specific down to the cent on how much money you spent on food the last month/year.

End of Heavenfall's quote

The fact that everywhere their use is accepted doesn't justify doing it. 

I've given you solid reasons why using cash might well be to your benefit. If you ignore it, you accept the risk.

Might I suggest shopping in Target, or Home Depot? Don't forget to use your card.

 

It only makes sense for store owners to favor cash...unless they buy into thinking that more people will purchase using cards than cash, and that they'll do it more frequently.

I defy anyone to prove THAT is in your favor.

Reply #18 from Elemental Forums Top

Don't act like you're spelling out the gospel, there are trade-offs to everything and I don't think the downsides to using credit cards outweighs the benefits. However, I'm especially concerned about how privacy plays out in the future.

Edit: interestingly enough it was made law in Sweden that shops may not charge a fee from people using their credit cards (so not only is it a breach of contract, it's illegal). The shops now decline if the purchase is too small.

Reply #19 from Stardock Forums Top

Quoting Heavenfall, reply 18

However, I'm especially concerned about how privacy plays out in the future.
End of Heavenfall's quote

 

I can field that question/answer.  There is none.....privacy that is.  O:)

Reply #20 from WinCustomize Forums Top

^ Precisely why I advocate for cash.  :thumbsup:

Reply #21 from Stardock Forums Top

 

I agree with you Doc, unfortunately the pull of the 'free' things you can get with the various rewards programs associated with cards these days often proves too much! 

" just when I thought I was out.....they pull me back in....."      Damn 'rewards programs'........hehe O:)

Reply #22 from WinCustomize Forums Top

Quoting the_Monk, reply 21

'free' things you can get
End of the_Monk's quote

Who doesn't like 'free' stuff. People see free, especially when it comes to high end products, will always be all over it. Nature of the beast. 

Reply #23 from WinCustomize Forums Top


Worse, the psychology of credit cards make it easy for you to overspend (and credit card companies like that).
End of quote

They love it :hugme:
A reason why i never got myself a credit card.
Simply by having one the temptation is huge to buy stuff that someone cant afford.
And as i know many have more than one... ending up with a value that that barely the next generation is able to pay because of the fees.
Thanks but No thanks is the right way to face it. 

Reply #24 from WinCustomize Forums Top

^ It's not a bad thing, but it does have a psychology to it, and wise to see that.

Also, "T.A.N.S.T.A.A.F.L." - from Farnham's Freehold (Heinlein): "There ain't no such thing as a free lunch." What seems 'free' ends up costing you twice as much (if not more).

 

Reply #25 from WinCustomize Forums Top

if everybody stopped overspending, wouldn't the economy crash even sooner than the credit card debt bubble will burst?  :S