2013-06-04; I Just Used Cash -- Boy, What A Horrible Way To Pay For Things!

[WiW]

http://www.businessinsider.com/cash-is-a-lousy-way-to-pay-for-things-2013-6

I made the mistake of using cash to pay for my lunch yesterday, and I immediately regretted it.
Why?
Because after taking one dirty piece of green paper out of my wallet and handing it to the cashier, I got several dirty pieces of green paper back--along with a fistful of heavy metal disks:

I had to stuff the many pieces of dirty green paper into my wallet, which made it even fatter, and and I had to dump the heavy metal disks in my shoulder bag, which made it even heavier.
And that exchange reminded me why cash is a horrible payment mechanism and why the complete transition to digital payments just can't come soon enough.

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[aigeezer]

Nice piece. Hearts and minds.

No kidding - I know someone who had to see a doctor about hip pain, the problem eventually traced to a fat wallet in a hip pocket.

[Chalkbot]

Haha, I pretty much said the exact same thing last weekend when I bought a beverage and got a handful of change back. It was somewhat disturbing having all of these, probably filthy, coins dropped into my hand, and then what? I don't even know what to do with all this change. I rarely use cash/coin. Funny enough my reaction to this situation peaked the interest of the person I was with, who I'd already had numerous discussions about bitcoin with previously, so the experience may have opened up another channel for me with the non-believers.

[cypherdoc]

written by Henry Blodget; a smart guy who knows how to write with tongue in cheek.

[dandirk]

He didn't mention some benefits...

Cash can get your car out of impound... at least in my area credit is still not accepted

You can get deals if you pay cash... I recently went to florida and could rent beach chairs and umbrellas at the ocean.  I told the guy what I wanted, and offered to pay 20% less then posted price with cash (and multiple orders too).  We agreed to an amount at 15% less then "msrp" lol.  You would be surprised how many places will cut a deal if you offer straight cash, heck some gas stations give an automatic discount on gas if you pay cash (in my area).


Some negatives...

He forgot to mention that with electronic, well at least main stream, you are giving information away.  Target uses credit card sales and their POS system to determine which customers are pregnant so they can send coupons for related items.  Not terrible but if you are concerned about that aspect... well there it is.  Back in the day, businesses would at least offer a vacation give away to get your personal info, now its free for them.

You get an account mix up or stolen card and you are hosed for a bit.  Cash, at least if done right can limit exposure to a number of things.  Though you could open multiple accounts/cards etc too.

Your wife can find out if you went to a strip club and the last time I went the girls didn't have square readers in their crack for tips.


lol he has a point generally.  I will freely admit that I rarely carry cash, unless I am traveling or expecting to barter on serious items.

[y2kcamaross]

 
Good article...except for the change, I actually hoard quarters, i probably get 10 dollars worth daily and stick them in big hinkley and schimdt bottles, why?...No idea, habit

[ArticMine]

While the article makes some good point the author misses a critical issue namely that everyone does not have his credit rating nor for that matter wishes to limit themselves only to those sellers who have merchant credit / debit accounts.

It also depends on what one is purchasing. Take food for example. If one wishes to purchase healthy and nutritious food from a local farmer at a farmer's market then cash or possibly Bitcoin may be the only options, on the other hand if one wishes to purchase heavily processed food, with a generous amount of sugar, trans-fats and GMO ingredients from a multinational conglomerate then a credit card may be the best option.

[Foxpup]

You can get deals if you pay cash... I recently went to florida and could rent beach chairs and umbrellas at the ocean.  I told the guy what I wanted, and offered to pay 20% less then posted price with cash (and multiple orders too).  We agreed to an amount at 15% less then "msrp" lol.  You would be surprised how many places will cut a deal if you offer straight cash, heck some gas stations give an automatic discount on gas if you pay cash (in my area).

You wouldn't be surprised if you knew why that is the case. You don't get a good deal for paying cash, you just get a regular deal, and everyone who pays electronically gets a bad deal. The ticket price typically includes the cost of processing electronic payment, because consumers (who think credit cards are magical devices that have no costs whatsoever) think they're getting ripped off if the have to pay a surchage for electronic payment. Hence the "discount" for paying cash.