I went to pay my mechanic with a bank card yesterday and he explained how it would cost him $30 a month plus 3% of the charge to be able to take card payments. Luckily I had just gotten paid for a work week, in cash, which just covered the bill. I hope cash stays around quite a while longer.
From the article: What was an inconvenience for us was a catastrophe for millions of Indians, who worked hard, socked away money in the bank, and then couldn’t get at their own money because of the bureaucratic dictate. Some couldn’t earn money in the first place, because it was impossible for customers to get the cash to purchase their goods. And because most small sellers weren’t set up to take plastic, my wife and I were unable to support the local tourist industry by purchasing crafts and food items.
You get paid in cash, you lucky thing, they stopped letting us do that here ages ago: we have to have it paid into an account. In fact we're not even able to pay cash into other people's accounts now! The assumption seems to be that we're guilty of some wrongdoing before we've started as far as banking is concerned.
I like taking my, 'pocket money' out in cash so that I can keep track of what I'm spending.
The problem with electronic transactions is that corporations are constantly compiling information on you. I prefer to remain anonymous, and cash lets me do that. Plus, counting out bills makes you think twice about if you really want to buy something. Moreso than just swiping a card and scribbling your name. I don't remember the numbers, but studies have shown this to be a real thing.
I reckon I'll go out on a limb here and mention cryptocurrencies. They are a very interesting and elegant solution to these problems. With a smartphone, you are your own bank (storing your own "money" ) with no need to transfer currencies during travel because the currencies are world-wide. With the right security practices that you, yourself control, it's not possible to have them stolen by a pickpocket (or by losing your phone). Nor is it possible for your value to be deflated away by changes in gov't monetary policy. Cryptocurrencies are world currencies, not gov't currencies. The use of cryptocurrencies is in it's early stages...like the beginning of credit cards, where only a few retailers had the ability to accept them, but, now only 10 years into the crypto experiment, the list of locations around the world accepting crypto is growing everyday. Only time will tell if this solution will be widely adopted.
Sounds like it may be a great move, especially for Countries like Iran who do not with to use the US$
I pay for a lot of purchases with cash. It's far easier to control your spending habits if you only use cash....and I think the reason so many people have debt is because money isn't "real" to them.
My renters all pay in cash and I give them handwritten receipts.
I prefer cash for small purchases and when I am paying bills - checks. I get payed monthly and I've heard one to many stories about companies pulling money before they say and causing issues.
I've "lost" too many bills in the mail that I prefer online methods of payment these days. While I do carry cash around, it is more convenient to pay electronically - even for the small time savings of counting out change. (Of course, I also think that the penny, and perhaps the nickel should be removed from circulation and prices rounded up/down to the nearest 10 cents when paying with cash.)
I have always envied Europe where payment by wire transfer is "free" and relatively easy; yet, when I want to do the same in the US, I am charged $25 or so. As the story suggests the US is just starting its transition towards cashless. Norway is like Sweden - I have enjoyed my cashless trips there.
I do find that the article perhaps has oversimplified the lack of debit cards among the poor in the US. I think one of the causes of that is the continuing practice of considering internet access a paid commodity rather than a basic necessity. (As an example, a land line phone is considered a basic necessity.) If we want society to continue to go cashless, driving by the marketplace, not by to government, we need to make the basic tools to do so available much more broadly.
I am a small retailer and was faced with a similar problem. I live on a small tourist island so we only make our money in 4 months and then it's hand to mouth so spending a monthly service fee all year for only 4 months out of the year of sales was too costly. On the other hand I was loosing sales when people didn't have cash. I eventually found a card reader that has no monthly fees but a 3% charge on each transaction. Not ideal but manageable.
The banks are pushing this concept of a cashless society. My bank has already closed my branch and they want me to do online banking. A lot of elderly people still prefer cash and are not online, so it is becoming increasingly difficult for them. For smaller payments we now have debit and credit cards that just require a tap at the consol....not exactly secure. On the other hand we still have some smaller businesses which don’t take cards because of the high bank charges as you already highlighted, but increasingly they will be forced to. So yes, I think the banks are in charge here and they will eventually get their way. It will cost them less to operate without branches on the High Street and it will save governments a lot to not have to mint nearly as much money.
I agree and hate the idea of internet banking, I'm only in my 40's but much prefer other banking methods. Banking apps and similar are not what I'm looking for, better interest rates would be a start