Why Are We Still Using Cash ?

Michael Hardner · October 7, 2016

Interesting Freakonomics podcast on the advent of cashless society.

http://freakonomics.com/podcast/still-using-cash/

Most interesting is the futurism wherein they talk about a world without money at all. It's coming.

cybercoma · October 8, 2016

Why are you still using cash?

BC_chick · October 8, 2016

What is cash?

Michael Hardner · October 8, 2016

Cash = Paper money

I currently only use it for cash-only business transactions like certain restaurants and the TTC

msj · October 8, 2016

I do the same.

I notice that I tip less at cash only restaurants - like I know they are committing tax evasion so I adjust my tippage down accordingly.

BC_chick · October 8, 2016

4 hours ago, Michael Hardner said:

Cash = Paper money

I currently only use it for cash-only business transactions like certain restaurants and the TTC

It was a joke. As in it's so obsolete in my life I don't even know what it is.

GostHacked · October 8, 2016

7 minutes ago, BC_chick said:

It was a joke. As in it's so obsolete in my life I don't even know what it is.

If I gave you a 100$ bill, you sure won't turn it down.

BC_chick · October 8, 2016

23 minutes ago, GostHacked said:

If I gave you a 100$ bill, you sure won't turn it down.

Correct. It's only obsolete in my life in the sense of going to the ATM and requesting it out of my account.

The only time I use "Cash" is on a Balance Sheet.

Argus · October 8, 2016

I guess I am old fashioned in that I prefer cash. I always carry enough to make smaller purchases, ie, anything under about $40-$50. And unlike most of the people I know who use debit or credit cards even to buy a bottle of water I've never had an incident of someone forging my cards - because I don't use them very often. I find it's usually faster at the cash, too.

?Impact · October 8, 2016

I use cash about 99% of the time for ad-hoc transactions. Recurring transactions are almost always through some sort of electronic means, a few of them through my credit card. I can't remember the last cheque I wrote many years ago.

Topaz · October 9, 2016

IS that why the host of "until debt do us part" decided to retire? Many people getting in to high debt, are using credits and she tells them to stop using them and use cash and a budget. I wonder how many use a budget? I have for over 43 years and soon when hubby estate is all settled, I'll pay any out standing debt and try to get on with life.

overthere · October 9, 2016

I was in a town this summer in Northern Canada when Internet service went down 3 days in a row, off and on for a few hours each day. The bank closed immediately, and the three ATMs in town followed suit. It became impossible to buy a meal, fuel or much of anything unless you had cash and they still had change in the till. And of course there was no way at all to get cash from anywhere. It took no time at all for attitudes to get kind of ugly as commerce and communications essentially halted.

It was instructional and disconcerting.

October 9, 2016

I can't see using anything other than cash for a dark roast, two milk at a Horton's drive through.

And if I need it for that, I might as well use it for other stuff.

It's strange. We have advanced from a system where you have to carry a card, scan it, sign it, get the bill, check the bill against the main bill, then pay the main bill, to a system where you just hand over some paper or coins and you're done, but people still resist it.

Edited October 9, 2016 by bcsapper

?Impact · October 11, 2016

On 10/9/2016 at 6:49 PM, bcsapper said:

IWe have advanced from a system where you have to carry a card, scan it, sign it, get the bill, check the bill against the main bill, then pay the main bill, to a system where you just hand over some paper or coins and you're done, but people still resist it.

Check out ApplePay. Place your watch next to the terminal, and you are done. You can even have you bill automatically deduced from your bank account. Yes, I would suggest you review the items, but it can be an almost hands off system. No need to run to the ATM to get cash.

b.t.w. I still prefer cash, but just pointing out ease of use is not the problem.

msj · October 11, 2016

Argggh! I have Apple Pay on my phone and need to figure it out for my watch but I'm still waiting for stores to accept it around here.

Oh well, if they don't want my money that's fine. All the more to save in my TFSA and RRSP anyway.

TimG · October 11, 2016

44 minutes ago, msj said:

Argggh! I have Apple Pay on my phone and need to figure it out for my watch but I'm still waiting for stores to accept it around here.

Oh well, if they don't want my money that's fine. All the more to save in my TFSA and RRSP anyway.

It would likely be deployed faster if merchants were allowed to recover the cost from the customers using it instead of being forced to raise their prices and make everyone pay for the convenience of the few.

bush_cheney2004 · October 11, 2016

Apple Pay doesn't always work even at points of sale that are AP enabled...still have to have a backup payment method. Cash is accepted in far more places !

msj · October 11, 2016

Yeah, well, even a normal Visa card doesn't work in the USA so no problem there.

Fortunately was able to call visa from the cell while on Whidby Island because the 'merikins like to preauthorize transactions which makes the transaction look suspicious (especially when it occurs in a bar for about $10).

Looking forward to the US to catch up to developed world standards ....

bush_cheney2004 · October 11, 2016

22 minutes ago, msj said:

Looking forward to the US to catch up to developed world standards ....

Apple Pay is American....I never have to go slumming in other nations for products or services.

cybercoma · October 11, 2016

12 hours ago, bush_cheney2004 said:

Apple Pay doesn't always work even at points of sale that are AP enabled...still have to have a backup payment method. Cash is accepted in far more places !

Maybe in the US, who has been far slower to adopt interac technologies. Canada's banking infrastructure is far more advanced. Apple Pay works almost everywhere because the vast majority of places have NFC. In the US debit wasn't and still isn't as widespread, let alone chip or NFC tech.

overthere · October 11, 2016

1 hour ago, cybercoma said:

Maybe in the US, who has been far slower to adopt interac technologies. Canada's banking infrastructure is far more advanced. Apple Pay works almost everywhere because the vast majority of places have NFC. In the US debit wasn't and still isn't as widespread, let alone chip or NFC tech.

Interac is not a technology, it is a debit payment system specific to Canada. It works well, and more importantly is quite inexpensive for consumers. The US has had VISA and Mastercard branded debit cards for a long time. This is why CDN debit cards often do not work at point of sale terminals in US and Europe. Lately, some CDN banks(TD Canada Trust is one) have stopped offering Interac debit cards and now offer only VISA branded debit cards.

The implications for consumers in Canada are considerable. Interac is effectively non-profit and operated by the big banks. The fees to consumers and merchants are very, very low. The fees on VISA and MC branded debit cards are much higher than Interac though lower than credit card fees. And of course those fees(just like credit card fees) are always passed on to consumers. Always. The reason that TD has jumped on the VISA debit bandwagon is that they now get a cut of the fee, where with Interac there was basically no fee to share.

My reaction to this was to close my accounts and investments with TD, and to tell them why, specifically.

BC_chick · October 11, 2016

5 hours ago, overthere said:

The fees on VISA and MC branded debit cards are much higher than Interac though lower than credit card fees. And of course those fees(just like credit card fees) are always passed on to consumers. Always. The reason that TD has jumped on the VISA debit bandwagon is that they now get a cut of the fee, where with Interac there was basically no fee to share.

The vendors are the ones paying the credit-card fees, not the consumer.

I have different cards, each giving me different rewards for certain purchases. If the unfortunate enterprise taking my money has to pay 4-5% of their sales revenue to the credit-card company, I'd like some of that to at least come back to me.

That's another reason I don't pay for anything in cash. There are no rewards.

bush_cheney2004 · October 11, 2016

Because of CC transaction fees, some retailers offer discounts for cash.

overthere · October 12, 2016

18 hours ago, BC_chick said:

The vendors are the ones paying the credit-card fees, not the consumer.

I have different cards, each giving me different rewards for certain purchases. If the unfortunate enterprise taking my money has to pay 4-5% of their sales revenue to the credit-card company, I'd like some of that to at least come back to me.

That's another reason I don't pay for anything in cash. There are no rewards.

LOL, where would you get the insane notion that anybody but consumers pay the credit card fees? As part of every rtansaction, We also pay retail workers wages, the rent the retailer has on the premises, the wholesale cost of the goods purchased plus markups. heat, water and a host of others that most certainly includes all credit card fees as part of the dollar you hand across the counter.

The 'unfortunate enterprise' would like you to take the super expensive fee laden card and stuff it up......but VISA and Mastercard both oblige every retailer to accept any branded card as part of their agreements with every merchant. So the retailer just bundles that cost and adds it to the other charges that YOU and every other customer pay for the goods. Your free lunch aka 'rewards' is not free at all. You paid for all of it. You don't get any rewards for using VISA/MC branded debt, so why not support the no cost Interac system when given that choice?

In noteworthy news, the sheep are fighting back...... Walmart has chosen to eliminate all use of VISA cards in some regions because they refuse to play any more. Love it.

BC_chick · October 12, 2016

Credit-card fees are not material, labour and premises are much higher cost for retailers. Credit-cards also increase revenue for a retailer given that people prefer to purchase on plastic, especially with anything over $100.

Are you actually seriously under the impression that consumer costs would drop substantially if credit-cards fees were eliminated tomorrow?

ETA - I've personally seen many businesses, (especially in residential trades), put off accepting credit-cards because of the fees only to see their sales increase significantly when they finally join the 21st century.

Credit-cards bring a lot of value to the table for a company.

Edited October 12, 2016 by BC_chick