Apparently, this is my area of expertise.

Personally, I prefer to pay cash for everything just because that is what I find is the easiest way to manage my expenses. I try to limit my use of my debit card (paranoia).

From a merchant's point of view, it really depends on the size of the store/company.

Accepting cash does have its own expense/drawbacks. For a store like Saks, they actually have to pay a tiny percentage of every dollar deposited to the bank (much lower than CC fees, though). They also have the issue of having to make bank deposits or contracting for armored car services. A multi-state, brick-and-mortar merchant can have a rather large banking structure just to support cash/check deposits.

Checks are the worst for obvious reasons.

Credit cards are bad because of the fees. However, large merchants are able to get the "cash" faster with CC's than with checks.

Debit cards are usually better than credit cards because of lower fees.

Any questions?

 

Apprently with MOST of what the Penguin says Our CC processing center charges almost identical rates for debit card processing and I believe there was some class action litigation about this...due to there being no float and the money is more guaranteed to the the bank but please correct me if I am wrong

 

thank you but i still don't understand why it's rude to show cash...

 

Apparently, I have neglected to really follow that issue. I believe debit cards had become so popular that the credit card processors were trying to prevent loss of revenue by charging them the same rate.

Unfortunately, as is often the case, the small merchants aren't able to negotiate better fees and have to accept the established rates.

 

That seems odd to me too. I can understand if the store wanted to protect its customers by not allowing others to see how much cash someone is carrying. Beyond that, I can't see other any purpose of hiding a cash transaction.

On a side note, it is rude to flash cash in front of other people and it is rude to look at someone handling cash. But this is not something I would expect a store to "enforce."

 

I have a cousin that still writes checks for purchases on occassion. This just kills me.

 

A family of drug dealers?

 

I do have sympathy for the challenges/issues the smaller merchant faces. However, the use of cash also has a cost to consumers. There is a cost of obtaining the cash (via ATM or trip to a branch etc). There can also be a cost in interest income lost by having cash in hand instead of an interest bearing account. (Yes I know these are the nitpicks of an economist )

Another thing to consider is debit cards give consumers the opportunity to make purchases in instances they would not if cash was the only means of making the transaction (rash purchases , expensive purchases).

In the end, it is the merchant that must adapt to the desires of the customer or face going out of business.

Personally, I find it annoying being behind a person that pays for a small dollar transaction with a debit/credit card. People really should carry SOME cash. (Pet peeve: people who wait for the cashier to ring up the entire sale before being ready to pay. )

 

that explains the funny looks she gets when paying from her roll of twenties... the white residue must raise some eyebrows!

 

NP; I'm sorta the opposite... I pay with credit for almost everything. Small purchases (fast food, soda at the gas station, etc) I pay cash. But if I just keep $100/week or whatever in cash, I end up pissing it away on crap and have nothing to show for it. With plastic, I at least have a tracking of what I'm wasting my money on. Not sure it really affects my spending habits, but I like to think it does