There are many reasons why I prefer cash payments. In a nutshell, doing business in cash saves me money – mostly on fuel. Also, paying my bills with cash keeps money in our local economy, which aligns with my worldview.
- I save on fuel costs when I pay with cash. My favorite gas stations give discounts when I pay with cash. Saving money at the pumps is crucial because gas is one of my biggest expenses.
- My overhead costs are lower for cash payments. I pay transaction and account fees for each each transaction paied for by credit cards and checks. ( https://www.npr.org/2023/09/26/1201257895/credit-card-fees-visa-mastercard-retailers )
- Using cash keeps more money in our community and boosts our local economy. This is more aligned with my worldview. The best article I’ve found on this issue is “The Cost of credit cards on local economies” by Jeff Wagner and Groundwork (http://www.layinggroundwork.org/category/consumption/). Below are some additional resources about how cash and credit cards impact local economies.
- Using US dollars keeps more money in the local economy. Some US cities and counties have their own currencies, which goes a long way to fix the economic problems I’m concerned about. Olympia, Lacey, and Tumwater do not have a local currency at this time. “Many local economies are languishing not because too little cash comes in, but as a result of what happens to that money. Money is like blood. It needs to keep moving around to keep the economy going. When money is spent elsewhere – at big supermarkets, non-locally owned utilities and other services such as online retailers – it flows out, like a wound. ” http://bbjtoday.com/blog/buying-local-money-local-economy/2105/
- Credit cards transfer wealth from the poor to the rich. Plus credit cards have a complicated web of fees, payments, and rewards programs. ( https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/ppdp1003.pdf and http://blog.oregonlive.com/finance/2010/07/paying_cash_to_reward_our_cred.html)
- https://smallbiztrends.com/2013/07/pros-cons-discounts-for-paying-in-cash.html
- https://www.tellerreport.com/business/–cash-payment–cash-is-the-most-cost-effective-means-of-payment-.rylXXvxHV.html
Spending habits can’t be tracked by marketing and research companies if I shop with cash. Buying with credit and debit cards means my spending habits can be tracked and that info can be sold to marketing and research companies. While I understand the business benefits of marketing companies having this information about me, I’m a little old school when it comes to seeing this as a creepy invasion of my privacy. For an overview, read https://www.creditcards.com/credit-card-news/retailer-data-tracking-privacy-credit-debit-cards-1282.php.
