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Here's a question for those who pay with cash

Posted by snidely (My Page) on
Thu, Jul 24, 14 at 12:27

It happens occasionally, I'll be in a checkout line at the grocery store and a customer is counting out $10 or $20 bills for a $100+ grocery purchase.

If this is what you do, why do you carry cash instead of paying by check or card? Is it that you get paid in cash and you don't want to deposit it in a bank? Or another reason?

Just curious.


Follow-Up Postings:

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RE: Here's a question for those who pay with cash

I use cash, but not to that extent. Maybe $50 is my limit, except when I pay people directly (hairdresser, house cleaner). I don't want to get a 5 page credit card bill every month. And I usually only use cash for consumables, restaurants, small grocery purchases and the like.

But I know others who use cash more than I do. One friend, 55 years old, uses cash for almost everything, even taking cash down to the assessor's office to pay property taxes. I suspect that he's somewhat paranoid, even tho he seems very normal otherwise. Old hippie but not old enough to have part of the Weathermen or other subversive group. Maybe drug dealer in his youth? But he now works for a school district in administration and has a perfectly normal wife and children.

I know that he does have bank accounts and direct deposit and retirement accounts.

I should ask him, huh?

This post was edited by sushipup on Thu, Jul 24, 14 at 13:40


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RE: Here's a question for those who pay with cash

Logically, using credit cards (and not carrying a balance) makes the most sense financially. You get rewards for using the card, you have an exact recording of everything you've spent, you have protection against theft, etc.

However, humans are not purely logical creatures. Some people don't view credit card purchases as spent money until it builds up too high and they get in trouble. Impulse buys happen. Using cash gives them a more tangible feeling that they are spending money. And if that works for them ... all the power to them. Anything that keeps people from digging deep debts is great in my books.

It's the same with paying off debts. If you have multiple different sources of debt, then logically you should pay off the one with the highest interest first. However, it helps some people (on a more emotional level) to pay off smaller debts so that they can erase a creditor off the books. Keeps their hopes up and depression away, which is better than saving a couple of bucks by doing it the 'logical' way.

Everybody's different and you have to find the method that works best for you.

This post was edited by greg_2010 on Thu, Jul 24, 14 at 14:13


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RE: Here's a question for those who pay with cash

In my case, I do not run a credit card balance. Everything is paid in full. And as for our friend, I can't imagine him ever being in debt more than a mortgage. He even drives a 25 yr old Volvo.

So I don't think that cash-people are necessarily concerned about CC bills.


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RE: Here's a question for those who pay with cash

I fail to what the big deal is. If someone has a $100 grocery bill it's no problem to take 5 twenties out of your wallet.

Maybe it has to do with where you live. Where I live people aren't afraid to carry cash because the chances of getting mugged or robbed are infinitesimal. In other words, It doesn't happen.

Sure, 90% of the people around here use their debit cards, but I see no problem with cash.

Oh, our property taxes are due twice a year. And it's surprising when I go to the Town Clerk to pay them how many old timers count out $1,000 in hundred dollar bills.


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RE: Here's a question for those who pay with cash

I'm sure that Snidely's neighborhood is not rife with muggers, but rather, he lives in a high-tech mecca where folks are much more likely to use plastic than those in the rest of the country, especially the more rural areas.


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RE: Here's a question for those who pay with cash

christopher, paying with cash seems very inconvenient and so old fashioned. I was wondering why some would choose to make purchases that way, that's why I asked.

I'm rarely in areas where there is physical danger, it's not a completely safe haven but it's as sushipup describes. You know where the bad neighborhoods are and they are easily avoided. Should I find myself in a situation where someone asks me for my wallet and other valuables, they're welcome to have them. No questions asked. It's never happened and I think it's most unlikely.

A rural lifestyle isn't for everyone, and it's for sure not for me. You have to take the good with the bad wherever you go, everyone just has different preferences to say what's good and what's bad.


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RE: Here's a question for those who pay with cash

If I have sufficient cash for a grocery purchase, fast food, etc., then I pay with it. It's kind of a psychological thing ... the transaction is done, paid, finished.


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RE: Here's a question for those who pay with cash

Maybe cash is "inconvenient and old fashioned" to you, but not mainstream America.
Plastic cost the merchants money. I find it absolutely crazy when I go into a Dunkin Donuts and the clown in front of me gets a small coffee and has to use plastic to pay for it.

You mean he didn't have $2.00 in his pocket????
The franchise made little if no money on that transaction.

That's why small merchants are now wanting a $10 minimum for plastic. Mom and Pop stores cannot absorb the costs associated with plastic.

The chains won't absorb the costs either. So you cause price increases by using plastic for minor things under $10.


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RE: Here's a question for those who pay with cash

Here we can agree in part, christopher. There's nothing more ridiculous than standing in line at a coffee place (I don't like Dunkin Donuts or Starbucks, but say that's where it is), someone orders a coffee drink for $2.75 and hands over a credit card.

As an aside, I don't use anything related to "mainstream American" trends as a guide to what I do and you shouldn't either. I wish most "mainstream American" trends would go away along with the people who advocate them.


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RE: Here's a question for those who pay with cash

Huh?
Mainstream America is just what most people in America do, that's all.

Here in Vermont I live with a lot of people who chart their own course.
Some believe the earth is going to fry next week so they live a life that they say creates as little pollution as possible. They ride a bicycle instead of driving a car, which is fun in winter. They're off the grid and use solar panels. They say eating toast is a treat as a toaster drinks power. They believe in renewable resources so they heat with wood.
They're very high tech people who walk the walk.
And they are far from "mainstream".

So if you want to follow your own path, go ahead.
I've done pretty much the same thing. I have no credit cards as I cut them up long ago. The only things in my wallet are my license, my business debit card, and my personal debit card. Oh, and cash.

But I do write a check when I go to the Town Clerk to pay my property taxes.


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RE: Here's a question for those who pay with cash

Could be lots of reasons. Maybe, as you said, he gets paid in cash and just uses that. Or maybe he just got home for the casino. Some people use cash as a way of controlling their spending and for most people there's a big psychological difference between swiping a card and counting currency.

What drives me nuts is people who insist on writing checks. Today at most merchants checks are essentially a debit transaction. Heck, you don't even need to fill out the check or sign it. All the register needs to do is scan in MICR numbers and the money is instantly gone from your account.


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RE: Here's a question for those who pay with cash

Snidely, I prefer to use cash. I would cash my checks at Walmart, leave, and spend my money elsewhere. If I didn't have the cash to pay for a purchase, I didn't purchase. It made me stop and think whether I NEEDED the item or not. I did this for roughly 10 years. As far as big purchases went, I'd use a card (I did have an account). After getting married recently, my husband uses nothing but a card, and it absolutely drives me insane when we're out & about to pay for a purchase with his card for amounts under $20. Still, I use cash for an incasa (in case of a) situation. What would we do if the banks had to shut for a day or longer? NEVER be without cash on hand. So I don't spend what I do keep on hand, I pretend it's not there.


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RE: Here's a question for those who pay with cash

I simply don't use my credit cards or debit cards. Aside from monthly bills and big ticket items for which I write checks (and I don't begrudge the USPS the price of a postage stamp) I'm strictly cash and carry. I don't do financial transactions, banking or brokerage, online and won't until things change and I'm forced to. How others settle up and with what just falls along the lines of whatever one is used to or comfortable with as far as I'm concerned.

If using a credit card is necessary "to keep track of spending" so does giving yourself a monthly cash allowance. Transactions are completed on the spot and if and when the allowance is gone, you stop spending. Cash doesn't have the added nuisance of replacing cards if you get hacked at Target or Michael's or having your checking account drained by use of a debit.


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Cash can't be hacked / and it's still GOOD.

To the OP's question "why do you carry cash instead of paying by check or card?" - here's the answer

It's NONE OF YOUR BUSINESS, snidely.


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RE: Here's a question for those who pay with cash

Wow, I didn't realize that you had to answer every question posted on the internet. That must be really time consuming. No wonder you get bitter and consider it an invasion of privacy.
:)

If you don't want to answer a question ... then don't.


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RE: Here's a question for those who pay with cash

Something like a billion passwords hacked by a few young Russians the other day.

They didn't/won't get any o' my Twenties used to pay for groceries ... or whatever.

(And our money is colourful ... considered strange, by U.S. folks).

Ones used to be green - now it's a bronze coin (that we call a Loonie [as there's a loon engraved on the back - and don't infer any other reasons, please), twos were brown, now a bronze & silver-coloured coin, Twonie/[Toonie? with a polar bear on the bronze centrepiece] , fives are blue, tens gray, twenties green, fifties red and hundreds brown ... don't remember about a seldom-seen thousand.

I do dislike helping pay for the merchant only receiving $96.00 - $98.00 or so for each $100.00 billed to credit card companies, though ... which may be even lower, on the cash-back variety.

ole joyful


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RE: Here's a question for those who pay with cash

Hey Ed,
Our new currency is colorful! An effort to prevent counterfeiting, which just goes to show that cash is not always king, any transaction can be fraught with fraud...


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RE: Here's a question for those who pay with cash

Some people use cash because they can't get or can't manage a checking account. When we had rentals we took cash at one rental because it was low income area, but never accepted cash in our nicer homes. If people used cash to pay the deposit and first months rent it usually meant they were a bad risk. I preferred they use a check other land lords liked the cash.


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RE: Here's a question for those who pay with cash

Some people can't manage money in what ever form it takes - paper as in currency or plastic.

If counting out bills for, say, a grocery purchase is annoying to those in line, consider the plastic user whose wallet full of credit cards are systematically rejected - or the check writer who first fumbles for the checkbook, a pen, writes it all out, then fumbles for the driver's license, makes the check out for more than the purchase so the cashier has to count out the difference...

Cash is quick.


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RE: Here's a question for those who pay with cash

I share your view, duluth, some people seem to be distracted or unfocused when it comes time to pay, no matter how they're paying. As if the need to do something comes up unexpectedly.

My question was more about why cash instead of other payment means.

But if you want to talk about inconsideration, there's the people who (often when there's a long line) decide that they can count out their pennies to cover the sub-dollar balance of 83 cents or whatever. Except they come up 5 cents short, and continue emptying their purse thinking there must be a few more pennies at the bottom.


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RE: Here's a question for those who pay with cash

Many people pay with cash because it makes the purchase "real" and they can see where the bucks went. Remember grandma and her envelope(s)? When the weekly or monthly money was spent, that was it, no more coming out. She also never got a shock when she opened a cc bill and saw that she overspent that month.

And if cash is very inconvenient and so old fashioned, I will be happy to take yours.


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RE: Here's a question for those who pay with cash

I think people have answered that, snidely. There are the cash is quick/transaction completed people vs. the convenience of plastic people. It's what you like, it's what you're used to and the money goes away from you regardless of the form.

Carrying cash is no biggie; only inconvenience might be going to the bank to get it. I also like to keep my checking account pared down a bit (there are those out there who can run afoul with the 250k FDIC insurance ceiling with checking, savings, CDs at one financial institution) and the debit card is a somewhat riskier form to use.


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RE: Here's a question for those who pay with cash

Plastic can be quick too. Entering your PIN can take just as short a time as counting out your change. Of course it depends on the store's system. Some of them can take a while.

And it's getting even faster now that some places have that feature where small purchases can be made by simply waving your card over the receiver. No signature or PIN entry required! You don't even have to swipe the metallic strip or insert the chip card. Just wave it in the general vicinity.


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RE: Here's a question for those who pay with cash

I use cash for almost all purchases under $50, and I NEVER use coins. Pay to the next dollar, get coins back. Save the coins in a jar, and either take to my bank with a coin counter or use Coinstar and get a 100% value Amazon gift card. Last week, I redeemed $96 in coins for Amazon, which goes a long way to sending things to my grandson across the country.


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RE: Here's a question for those who pay with cash

Using cash, you do tend to accumulate coins. My bank has a coin counter, but I keep a coin purse stuffed full of pennies, nickels, dimes, and quarters to use for off whole dollar amounts if no one's behind me in line. My brother will often exchange bills for $10 or 20 worth of quarters for parking meters downtown in The Cities. Can also unload some in the SA kettles over the holidays - never leave the house without a pocket full at that time of the year.

Many places of business around here are very happy to get coins and especially $1 bills. Farmers market vendors are appreciative too.

This post was edited by duluthinbloomz4 on Fri, Aug 15, 14 at 14:23


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RE: Here's a question for those who pay with cash

Credit cards for almost everything, get rewards, pay in full (few exceptions to that).

Cash is a pain, that is all. If I have cash in my wallet, I usually keep it to use in those very situations like the $2 at Dunking Donuts, although if I have no cash on hand, and have a hankerin' for something, I'm not going to spend $5 to use the ATM at the store, nor am I driving 3 miles out of the way to go to my home ATM either, I'll use a card.

However, debit cards are my least favorite.

If something gets screwed up on a debit card, it's YOUR money held hostage until it is resolved. If it gets screwed up on a credit card, it's the bank's money that gets held up.


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RE: Here's a question for those who pay with cash

Shopping this afternoon, paid cash to the penny. The cashiers always seem impressed when I do that ... being that they are cashiers. :-)


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RE: Here's a question for those who pay with cash

Either or, no big deal. Sounds like you're more irritated to have to wait a few extra minutes for the cash counters.


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RE: Here's a question for those who pay with cash

I was a cashier at Walmart for awhile and cash counters annoyed every one in line. I had a customer who her and her husband were both checking their pockets for change and I swore I would never do that and I don't unless I am the only one in line and have way to much change in my purse.

This post was edited by EmmaR on Fri, Aug 15, 14 at 20:43


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RE: Here's a question for those who pay with cash

I don't need to check my pockets for change ... I carry it all in one designated pocket and I know which one is that. I eyeball it in my hand before leaving the house, and again for a refresher when the transaction begins so I have a mental preparation for whether what I have will fit the total when it appears. If not, then I don't bother riffling through it.

$0.12 cents is not an enormously overwhelming irritating big deal to count ... one dime and two pennies.

My currency is arranged in descending order in my wallet so pulling what I need from there also isn't a huge deal.

$68.12: 3 twenties, 1 five, 3 ones, 1 dime, 2 pennies.

EmmaR, congratulations on quitting that job you detested. :-)


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RE: Here's a question for those who pay with cash

Except for 2 1/2 years I have only had part time jobs due to boredom so I could quit anytime I pleased. One time I corrected a young mother who came through my line with a boy in the cart. She called him a turd and I told her if she continued to call him names like that he will grow up thinking he is worthless. I didn't care if I got fired or not.


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RE: Here's a question for those who pay with cash

Just because i pull out a card doesn't mean it's a credit card. It could be my debit card, (most likely) or if I was on the dole, an EBT card.

yet another grocery chain has announced a security breach of it's credit/debit operations last week. The folks that paid for groceries with cash aren't monitoring their bank statements.

In the late 70s I had a room mate who was so terrible about reconciling her checking account, three banks asked her to take her business elsewhere. She may have run out of options by now.


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RE: Here's a question for those who pay with cash

An employee (teenager) at the business where I work the bookkeeping had written a check for cash, closed the account without understanding that any outstanding checks would bounce.

Another employee understood but didn't care. She never noted her written checks in her account register, never reconciled. She had two outstanding checks written for cash, closed the account, advised me to let her know when the bounces came through and how much are the fees.

Idiots.


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RE: Here's a question for those who pay with cash

Have we as a society become so impatient and self absorbed we now get upset when someone pays cash? Or worse yet, will count out the correct change to give the cashier?

Really???

Have we become so self important that when someone does something so "old fashioned" as using cash causes resentment? Do these same people also get annoyed when someone does the speed limit on a 2 lane road? Do they somehow think they're better than the others? Personally, I don't care if President Obama is in line, I'm counting out the correct change!

These people need to slow down, smell the roses, and try doing the speed limit on a country road sometime. Stop at a country farm stand that has corn and vegetables with nothing more than an honor box for the cash.

Because the farmer doesn't take plastic.


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RE: Here's a question for those who pay with cash

A lot of interesting comments.

christopher, I think the people who are self-absorbed and self-important are the ones who carry on, being inconsiderate of others. If you're driving down the road (or worse, in the fast lane on the freeway) at or below the speed limit but someone indicates they want a faster pace, it's easy enough to pull over. I do that all the time. That's just being considerate, nothing more.

If you're at a checkstand and there's a long line, one might wait for another time to clear the handbag of pennies. As Emma suggests she does.

Smelling the roses is a good thing. Other times, someone might be late, or in a hurry, it's easy enough to get out of their way.

As I said before, the cash thing puzzles me, I've enjoyed the different perspectives. Just as paper money replaced gold and silver because of the convenience factor, so too has plastic replaced paper money for many people. But as the comments here show, not for everybody.


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RE: Here's a question for those who pay with cash

I use cash...because A) I can do that faster than a check and B) my parents never trusted plastic...so since I'm shopping for my father...has no credit/debit card.

I usually don't dig for change (even if I have some), unless I'm certain I have that exact change and can dig it out pretty easily.

Today's pockets usually have wallets, cell phones, keys, maybe even kindles in them...as well as possible change.

Aren't you familiar with the old maxim, whatever line you get into in the supermarket is the slowest one. Get used to it :)


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RE: Here's a question for those who pay with cash

dbarron, absolutely right, every line I get in is the slowest.

I don't complain about anyone taking to long in front of me to pay under any circumstances, what I do complain about is putting heavy stuff on top of my peaches and tomatoes. Or like today, I shopped at K Mart and when she rung it all up she asked me to sign the machine. I told her there is no total here, how am I suppose to know if it is accurate or close to it. Most machines show you the total. There is no way any one can read the small print on the cash registers.


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RE: Here's a question for those who pay with cash

Snidley, I always pull over if someone needs to go around me on a country road. But up here the only ones who have the need for speed are the kids.

We have a running joke. "Don't ever be in a hurry at a Vermont 4 way stop sign." You'll be there for 5 minutes because everybody is waiving the other guy to go ahead.
"You go."
"No no no, YOU go!"
Then we all wave at each other as we finally figure it out.

You see, I was once like you. Always in a hurry, getting upset when somebody slowed me down for a reason I thought was inconsiderate to ME. I had to drive a new car every 2 years so I could impress my neighbors. My doctor told me I was a heart attack waiting to happen because of the stress from my job and impatience with life in general.

So in 1990, at age 40 I chucked it all. Both my wife and I left the corporate world and moved out of New Jersey. We ended up in Vermont. Slow pace, nice people, dirt roads so you can't drive fast, etc. We found a little town of 800 people and a general store. No cable TV, no cell service. We're still here. They ran cable by our house in 2010, and we got a cell tower inside the church steeple in 2011.

I have never been happier. So if the lady in front of me digs through her purse for that last penny, I say "go ahead".

It's not like I have to catch a bus or something, because there are no busses to catch.


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RE: Here's a question for those who pay with cash

Way to go Christopher. You made a good choice. I am so laid back and patient, I often think I am the only one out there who is. I tried to move to my home town but......no Best Buy or Office Max to go to for my electronic fix and smoking pick up trucks, doing 40 to 50 MPH down main street. LOL


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RE: Here's a question for those who pay with cash

What I find amusing... these type of posted questions soon turn to the "right" or "wrong" attitude regarding (this subject) cash, change check or credit card.


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RE: Here's a question for those who pay with cash

There's a lot of that going around on some of the forums - doesn't matter the subject of a thread.


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RE: Here's a question for those who pay with cash

"There's nothing more ridiculous than standing in line at a coffee place (I don't like Dunkin Donuts or Starbucks, but say that's where it is), someone orders a coffee drink for $2.75 and hands over a credit card."

I wouldn't call it "ridiculous." I've been surprised a time or two at the cash register to open my wallet and find that I don't even have a couple of dollars.


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RE: Here's a question for those who pay with cash

Emma, our closest Best Buy is an hour away in Saratoga, NY, so we just don't go there. Saratoga is also the closest mall, so we haven't been in a mall in over 10 years.

The average Walmart store today is 100,000 sq ft. The Supercenters are 250,000 sq ft. Our local Walmart in Bennington is an old Woolworths store and is 40,000 sq ft. Small, but has what we need.


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RE: Here's a question for those who pay with cash

And now it's Home Depot with a security breach. So that time you went in for a packet of picture hanging hooks, and used plastic? Check your account.

Here is a link that might be useful: breach in data security at Home Depot


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RE: Here's a question for those who pay with cash

The USA accounts for just over 16% of credit card use, but we account for over 50% of credit card fraud.

So new cards are coming for everyone.

Instead of the magnetic stripe, they'll have a chip on the front. The new card is inserted into a reader and left there while the transaction is completed. The chip "talks" to the processing company and is supposed to eliminate hacking.

All merchants will be required to have the new readers by October 2015.

This will slow down those people who like to just swipe the card and go, or tap the card near the terminal or gas pump.

(Edited because my computer can't spell)

This post was edited by christopherh on Wed, Sep 3, 14 at 7:03


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RE: Here's a question for those who pay with cash

Christopher, I have not heard that, will check with my CU or bank next time I go in. My CC has not had the magnetic strip in a quit awhile, it has a chip and can't be scan by someone walking down the street. I don't have to leave my card in the machine. If this happens my CU will be sending me a letter before it happens.


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RE: Here's a question for those who pay with cash

Europe has used the so-called "chip and pin" cards for at least 15 years, maybe more. That's what has cut down on their fraud. Probably also true in the developed countries of Asia too. Google "smart card" to see what they look like.

I go at least once a year and have for ages. Since smart cards became the norm there, trying to use our antiquated mag strip cards is sometimes greeted with a rolling of the eyes. For some uses (like a ticket machine in a train station) our cards aren't accepted.

I currently have one of the hybrid smart cards from a US bank, called "chip and sign". I've found it works in card readers in other countries - most recently in Canada a few months ago, where every retail vendor seemed to have smart card readers. We're way behind the rest of the world on this one.


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RE: Here's a question for those who pay with cash

I didn't realize you guys down south didn't have the smart cards yet. I'm in Canada and we've had them for quite a few years now. It's getting rare to see a card that is just the magnetic strip.

I guess I shouldn't be surprised. I remember when debit cards were first introduced and up here we were using them for years. Then I traveled to the States and nobody had heard of it! It's strange how you guys are so advanced in many ways, but so behind the times in many more.


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RE: Here's a question for those who pay with cash

I'm just echoing what Greg said. We've had the chip bank cards for years. You leave your card in the machine until the transaction is completed.

We also have tap and go, but I've never used that. I have no idea how it works.

I much prefer paying for groceries and incidentals with cash. When I need cash, then I'll use debit and get cash back at the grocery stores. Not much need to go to a bank anymore.

What drives me a little batty is the people who will wait until all of their purchases are rung through, the cashier has told them what the amount is, THEN they open their purse and rummage around for their wallet, etc etc. Did they think they were getting their groceries for free? I have my wallet in hand as I'm waiting in line. I check the prices as they are rung and have my money ready.


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RE: Here's a question for those who pay with cash

This is gonna drive Snidely nuts.

I am an artist and do art fairs for a living. 70% of my sales are cash. I was making a transaction last weekend for something like $37.72 with tax. I was handed a nice new $100 bill.

I took out my counterfeit bill pen.
Marked the bill to make sure it's real.
Took out 3 pennies and a quarter from the register.
Took out 2 $1 bills.
Took out 3 $20s.

Then I did something nobody does anymore...

I COUNTED OUT the change to the customer! Its then I realized I do it for every cash transaction.


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RE: Here's a question for those who pay with cash

Plastic has NOT REPLACED Cash just yet.

They currently coexist ...


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RE: Here's a question for those who pay with cash

The rewards that consumers earn when using CC come from the fees vendors pay for accepting CCs. Feeling the pinch, convenience stores, gas stations and some restaurants in my community are offering anywhere from 2-10% disc if u pay cash. Wondering what effect this will hv on CC comoanies


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RE: Here's a question for those who pay with cash

Nah, no problem. I always use cash myself at farmers markets and fairs, the sellers can't offer the same facilities as in a fixed place of business. Also, the purchase amounts are usually much lower.

What I was thinking about originally was the $350 purchase at Costco that the customer pays for by counting out $10s and $5s (twice or three times), or the $37.72 purchase at the grocery store that's being paid for with singles, dimes and quarters. It's an entirely different situation at a temporary location and your customer plopped down one bill in payment. Take your time in making change.

Digital and mobile payments are the future. The articles I've read suggest that the last footholds for the use of cash will be low income folks and those in the black economy,


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RE: Here's a question for those who pay with cash

Since merchants can now charge extra to cover the cost of plastic, I see more gas stations back to having one price for cash and another for credit.
I was in Jersey last weekend and every gas station I saw had prices like $3.29 for cash, and $3.39 for credit. More business are again having a minimum amount for plastic. They would rather lose your business than lose money.


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RE: Here's a question for those who pay with cash

I think we've had this conversation before, no matter. I view a merchant's cost of processing my cc charge as part of their cost of doing business. For a gas station, the lights need to be on, there needs to be clean water and paper towels available on the island and a clean bathroom to use. Without these available to my satisfaction (all of which cost something to provide), I'll go elsewhere.

Charging to use a credit card would be like a restaurant menu stating that there's a supplementary charge for the salary of the dishwasher if I choose to use hard plates that need to be washed instead of a paper plate.

If they want to raise prices to cover whatever charges they want to cover, fine.

It's the sniveling that bothers me, not the price supplement. A business that wants to cry about something like cc fees is welcome to do so, I'll always take my business elsewhere. Even if I have cash to pay for what I want.


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RE: Here's a question for those who pay with cash

I don't feel a bit sorry for businesses that loose a bit on a card charge, if they don't like it they need to find another profession.


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RE: Here's a question for those who pay with cash

When I've asked cashiers whether they'd prefer to be paid from my cash transaction or that of the one from the customer using a credit card just ahead of me, they usually say that it doesn't matter to them ... it's up to their boss to pay them what he owes them ... when he owes them.

I ask them how they'd like to be paid $96.00 - 98.00 when s/he owes them $100.00 (possibly less when dealing with the cash-back ones) ... and to wait 6 - 8 weeks or so for their money.

That's not their problem: the boss needs to pay them the full amount owed ... and now, if it's due now. Where the money comes from is not their concern.

Well, then ... do I get a discount for a cash transaction?

Nevah hoppen!

I have yet to leave my purchases sitting on the counter and walk out of the store ... but one of these days it may happen.

I've heard that the contract with the retailers has included a rule that the retailer can't offer a discount for cash ... maybe, if that's still true around here, it's a rule that applies only in Canada.

I'll have to check up on that one.

Possibly, in future - no discount for cash: could well be, no deal.

ole joyful


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RE: Here's a question for those who pay with cash

Emma, Where I live there aren't a lot of national chains. We still have coffee shops and actual bakeries.

So the owner of the coffee shop has to pay rent, electricity, licenses, payroll (which includes an additional 6% of that payroll to the Government) along with maintenance, etc.

These places know how much they must make per hour just to break even. So when someone comes in for a $2.50 sale, he loses money on the credit card transaction. Debit card transactions cost him 40 cents. So he loses almost 20% of that sale to the bank.

So if you insist on paying with plastic, he would rather you go elsewhere than lose money.


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RE: Here's a question for those who pay with cash

... and to wait 6 - 8 weeks or so for their money.

ole joyful, that might have been the case way back when they used to take imprints of the credit card numbers and then had to manually account for all of the credit card slips at the end of the day, tally it up, and mail off the slips to the credit card company and then wait for their payments to be processed and a cheque mailed back to them.

Now a days, it's all automatically processed and the funds are transferred into the merchant's account before the customer leaves the store.

And since it's all automatic, there are a lot less occurrences of human error than when everything had to be done manually.

So there are some advantages for the merchant as well. It's up to the merchant whether the advantages are worth the price.

There is a 'cost' associated with cash payments. That cost is in the form of human error (ie. cashier gives the wrong change), employee theft, manually counting the tills at the end of the shift, accounting, rolling the change, making trips to the bank, etc. That's all I can think of off the top of my head, but I'm sure there are others.

For small mom and pop shops or art fairs, that cost may be small or insignificant. For other businesses it isn't.

This post was edited by greg_2010 on Fri, Sep 12, 14 at 11:32


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RE: Here's a question for those who pay with cash

I have never yet heard a merchant say they preferred plastic...it's always been the other way (when I've heard)...not that I ask.


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RE: Here's a question for those who pay with cash

I didn't mean to insinuate that the advantages always outweighed the disadvantages for ALL merchants. I just meant that there are some benefits to plastic. It isn't all a burden.

And if you add in the advantage of not chasing away 'plastic only' customers, then accepting plastic is definitely an advantage. Otherwise the merchant would choose to be a 'cash only' merchant.

It's just one of the costs of doing business now. Same as rent, employee salaries, utilities, etc.


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RE: Here's a question for those who pay with cash

Now a days, it's all automatically processed and the funds are transferred into the merchant's account before the customer leaves the store.
The ccard processor used at the business where I work direct-deposits the daily batch total on the 2nd business day after batch closure.

Mon --> Wed
Tue --> Thu
Wed --> Fri
Thu --> Mon
Fri --> Mon
Sat --> Mon
Sun --> Tue

August numbers:
$33,999.42 ccard sales
  1,147.44 fees deducted, which figures to ~3.375%


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RE: Here's a question for those who pay with cash

I've been told at merchants only cash or credit, no checks. Obviously checks bounce, credit is safer for them.

For a small purchase credit is quicker than cash, only a swipe, no receipt, no signing, easy quick.


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RE: Here's a question for those who pay with cash

And now we have Apple Pay......:)


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RE: Here's a question for those who pay with cash

I had my debit/CC card hacked once and after proving I did not make the purchases and giving the police information on who did, I was still out the money. The bank looked at it as MY money was stolen and not theirs. They were not helpful at all.

So now I only use a credit card or cash to pay for things. Sometimes I need cash (donations, gifts, etc.,) and it is just as easy to take out say $200 and use some of that for groceries instead of putting it on the CC.


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RE: Here's a question for those who pay with cash

I don't think anything is quicker, easier, or safer than a CC. I did not use one when I was younger, but now use it for anything over $15.


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RE: Here's a question for those who pay with cash

Greg, the money is never in the merchant's account "before the customer leaves the store" simply because the merchant must 'batch" all the sales at once and they are transferred to the processor's bank. At best, the money is in the merchant's bank the next business day. However, many processors wait until the second business day.


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RE: Here's a question for those who pay with cash

Okay, maybe I was exaggerating a little. :)
But it is no where near 6-8 weeks.


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RE: Here's a question for those who pay with cash

The town hall will take a credit card for your tax bill...with a 3% service fee.
The accountant who does my taxes will take cash or checks, but since he'd be charged a couple percentage points for processing debit and credit cards, has held off accepting those so far. He's unwilling to absorb the cost.

In our state, one can't charge extra for taking a credit card, but one can offer a discount for cash.


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RE: Here's a question for those who pay with cash

UH OH!

I was at the grocery store yesterday, and.... GASP! The lady in front of me took out her purse, looked inside and found ... her checkbook!!! Then she proceeded to waste my oh so valuable time by actually writing out a check! And to make matters worse, she had the temerity to do the math in the register too!!

Then she had the nerve to casually chat with the cashier while writing out the check like they were old friends.
Oh, wait. They actually were old friends.

Never mind.


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RE: Here's a question for those who pay with cash

I am surprised that a retail store takes cheques. I haven't seen a cheque written around here for years. I still pay some bills by cheque, but I've never seen anyone write a cheque for groceries or other retail purchase.


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RE: Here's a question for those who pay with cash

Jasdip, I had not thought of that and you are right. I never see anyone writing a check. I right checks just for insurance and taxes and the occasionally service man.


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RE: Here's a question for those who pay with cash

I see people writing checks at the grocery store. Check has to be on a local bank and presented with an ID. Not sure if they can be written for anything above the amount of purchase. They probably can be.

As opposed to when I lived out East, folks here are pretty patient and good natured. My time isn't so valuable that a little time spent in a line is going to ruin my day.


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RE: Here's a question for those who pay with cash

For what it's worth, the very popular produce stand here only takes checks or cash. I buy much there although erratically, and always write a check as I rarely have cash as the trips aren't typically planned.

I have a good friend who is frugal and an excellent money manager. She took her family to Italy from cc rewards accumulated over three years. But she is disciplined and never spent more than she would if she had cash on hand. (or specifically budgeted)


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RE: Here's a question for those who pay with cash

My small local merchants LOVE it when I pay in cash or check. No debit or credit fees.

I recently bailed a friend out of jail. Talk about inconvenient. They only accept cash or bond and we're talking hundreds or thousands of $. Drive to a not-very-close and kind of scary place with lots of rules and uniforms and razor wire. Fill out paperwork and wait for a couple hours to meet with the bailiff, who then combs over paperwork and meticulously counts out the money. Bailiff actually thanked me for bringing hundred dollar bills, she said some people pay with smaller notes! Then wait some more for miserable friend to finally be released.

Kind of puts things in perspective - who cares about somebody taking a minute to count out their grocery money?

This post was edited by terrene on Wed, Sep 17, 14 at 10:55


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Cash and Carry

LOL and Woot Woot @ christopherh who said - "This is gonna drive Snidely nuts. I am an artist and do art fairs for a living. 70% of my sales are cash. I was making a transaction last weekend for something like $37.72 with tax. I was handed a nice new $100 bill. I took out my counterfeit bill pen. Marked the bill to make sure it's real. Took out 3 pennies and a quarter from the register. Took out 2 $1 bills. Took out 3 $20s. Then I did something nobody does anymore... I COUNTED OUT the change to the customer! Its then I realized I do it for every cash transaction."

That is beautiful and rare. Oh - And the grocery store shenanigan was hilarious! This exact scenario happens a lot in my neck of the woods. I live in a place where where folks are not all about self importance. I prefer to pay with cash but do self check out so no one has to wait on me. And at many of the big stores I will write a check if I don't have cash for the reasons discussed earlier.

I think there are lots of plastic people in the world today, so it goes to figure that plastic is preferred by so many!


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RE: Here's a question for those who pay with cash

I was in the self check-out lane at the grocery store the other day and one guy had his cash and whatever else may have been in his pocket sitting on scanner. He's picking through the bills and straightening them so he could feed them into the machine.

I finished my check-out (just a few items) and the guy was still there...


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RE: Here's a question for those who pay with cash

Wow, never knew there were such strong opinions.

Am one of those who uses credit card for just about everything. Yes, even the $1 diet coke @ McDonalds drive-thru. Find transactions much faster than using cash. Also pay bill in full, every month. No fees, get reward points.

Glad I have done that, the statements are a great resource as I complete my total loss contents list - my house burned down and I need to submit to the insurance company a list of EVERYTHING I had in the house in order to get $$$ to replace things.

Some reasons why others may pay in cash:
1. they are in a witness protection program :-)
2. horrible credit and cannot get a card
3. have gotten into trouble using credit cards in the past


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RE: Here's a question for those who pay with cash

1. I do not have a criminal record. Not even a parking or speeding ticket.

2. I have excellent credit (the title company agent on my last home purchase said I had one of the highest credit ratings she had seen). I have three bank cards. Had several dept store cards many years ago until they were closed for non-use since the bank cards can cover any situation when needed.

3. Nope.

This post was edited by dadoes on Sun, Sep 21, 14 at 7:54


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RE: Here's a question for those who pay with cash

I haven't carried the check book in the last 10 years. I love NOT using it. The CC is my best friend.


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RE: Here's a question for those who pay with cash

"...Some reasons why others may pay in cash:
1. they are in a witness protection program :-)
2. horrible credit and cannot get a card
3. have gotten into trouble using credit cards in the past..."
********************************
That is an absurd assumption.


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RE: Here's a question for those who pay with cash

I doubt the first one but the second and third are right on. There are people out there that can't get a checking account or CC. It is not an assumption it is experience dealing with people.


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RE: Here's a question for those who pay with cash

mdln said some reasons ... not the only reasons.


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RE: Here's a question for those who pay with cash

We took a Financial Peace class. He recommended we pay cash at the stores and cut up our credit cards. You can feel and see how much you are spending. With a card you tend to over spend and get in debt. That is one of the ways he became a millionaire.


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RE: Here's a question for those who pay with cash

That is one of the ways he became a millionaire.
The other is claiming to be an expert and charging people to attend his class. ;)

That advice may be true for some people. For me personally, I find the opposite to be true. If I have cash on me, it seems to just disappear on small purchases. I tend to think "Oh, I have a buck in my pocket. Maybe I'll grab a chocolate bar!"
If I only have a credit card, I won't bother.

Plus, at the end of the month I look at my statement and add up all of the necessities and the spontaneous purchases and either feel good about my self or resolve to spend less the following month.

I think that the people who get in trouble with credit cards don't tend to even look at their statement because they don't want to be reminded of what they did.


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RE: Here's a question for those who pay with cash

I think we can probably just leave it at different strokes for different folks. I can do either (cash or plastic), because I think about whether I need to make a purchase before I do so, in either case.


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RE: Here's a question for those who pay with cash

Thank you Greg_2010. Am trying to refrain from ''absurd'' commenters and just ignore them, so I appreciate your clarification of what I said. (Am in Chicago and dated a CPD homicide detective for too many years; thus, my thinking of this.)

Regarding witness protection, the following discuss this situation.

http://www.forbes.com/sites/adamtanner/2013/07/17/infamous-mafia-hit-man-tells-how-he-rebuilt-identity-in-witness-protection-program/

http://thebillfold.com/2014/08/how-people-in-the-witness-protection-program-do-money/

http://ficoforums.myfico.com/t5/Credit-Cards/Witness-protection-program/td-p/2202255


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RE: Here's a question for those who pay with cash

Maybe you have to deal with witness protection cases, I don't know. But for me that one came completely out of left field.
You see, where I live we have literally no crime. We don't even lock our doors. And we have no police except the State Trooper who patrols every once in a while. If a crime is committed in our town, everybody kinda knows who did it.
Another reason our crime rate is so low is that our state is possibly the most well armed state in New England. Come to think of it, I don't know anybody who lives near me who doesn't have a gun or two.

And not being able to get a checking account because of bad credit is something I never heard of. I got my first checking account at age 15 and I had no credit at all. Why would someone be denied a checking account based on a credit rating?


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RE: Here's a question for those who pay with cash

No credit is better than bad credit.
If someone has had an account closed because of unpaid overdraft fees, then a bank would be very hesitant to open another account for that person.


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RE: Here's a question for those who pay with cash

chrisopherh - Your town sounds like an ideal place for one in the witness protection program. Many people in witness protection programs are normal law abiding citizens, their placement has nothing to do with crime in your area.

Also greg2010 is correct no credit is better than bad credit. People with a bad banking history can have trouble getting a checking account.

No one is stating a person paying with cash should be looked at with suspicion, only that there are multiple reasons for paying with cash.


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RE: Here's a question for those who pay with cash

Have you been to Home Depot and used a credit card this year? A good reason to use cash for anything but a major purchase. I felt no fear with the announcement that HD's cash registers had been hacked and 56 million credit card numbers compromised -- I use cash there and almost everywhere the vast majority of the time.

I have three credit cards that I could use and a very high credit score, but prefer cash and no debt.


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RE: Here's a question for those who pay with cash

I felt no fear with Home Depot's announcement either. If my credit card is compromised, I'm not responsible for the charges. I just notify the credit card company and they remove the charge.
No big deal.


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RE: Here's a question for those who pay with cash

Home Depot, yes. Just like Target before. The Target incident resulted in no loss nor any real inconvenience for me. My bank sent me a new card, I needed to spend maybe 15 minutes to change the account numbers in my various autopay accounts and that was it.

Using a credit card for many is just a convenient means of payment. For those who don't carry a balance forward, it's not "debt', any more than is any bill you get when you've received goods or services before paying.

Cash, credit card, pay as you like.


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RE: Here's a question for those who pay with cash

Target got hit pretty bad with credit card hacking several months ago here. We have a debit card if we care to use it.


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RE: Here's a question for those who pay with cash

I wouldn't use a debit card for anything. Get that hacked and your checking account can be drained in very short order.


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RE: Here's a question for those who pay with cash

Home Depot, Target, Michaels, Jimmy Johns - and a boat load of restaurants, gas stations, local shops that are not reported at all. Anyone can lift your credit card info easily - there are ways and means and this is NOT news. LOL

Credit cards and Debit cards do have protections on them, but the holder needs to be aware and set alerts and monitor the activity. I prefer cash for small purchases but that's just me.

The news loves to dramatize the numbers. If your checking account gets drained, then you should find a new bank for g'ness sake!

This post was edited by sasafras on Thu, Sep 25, 14 at 20:42


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