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You can't even change large bills at a store, and many banks are closed now.
I needed smaller bills to pay cash for handyman work, and it was a hassle.
You need to buy something and pay cash in order to activate the money tray in a store. Then you can ask for change.
I think the transition to cashless society will happen almost organically. Even now, I personally forget to withdraw cash on some weeks and just pay with a credit/debit card. The only place where using cash is advantageous is in a few small businesses that actually give you a discount for paying with cash. There aren't a lot of those places around any more and our bagel shop now takes cards even for buying one bagel...
There is a bit of a pushback here because of the 1.5% fee that is often added to the cost of electronic transactions. As well, quite a few places are giving a 5% reduction for cash. So saving 6.5%.
Our local council has gone cash free and people are upset. They still want to be able to give the kids a few dollars at the swimming centres to buy an ice-cream, rather than having to give them a card.
I think it will quite some time before cash disappears completely here.
I think the transition to cashless society will happen almost organically. Even now, I personally forget to withdraw cash on some weeks and just pay with a credit/debit card. The only place where using cash is advantageous is in a few small businesses that actually give you a discount for paying with cash. There aren't a lot of those places around any more and our bagel shop now takes cards even for buying one bagel...
I keep a few grand in a fireproof lockbox just in case there's ever an, er, unplanned "bank holiday". From what I have read about the depression era, they tended to last a couple of weeks.
As for a cash discount ... some small businesses will charge you, say, 3% extra to use a credit card, and prefer that you write a check, in which case they don't charge the fee. Not quite the same thing as a cash discount, which is probably a transparent attempt to avoid recording the income and thus paying taxes on it.
What actually happens most of the time is that businesses jack up prices a bit to cover for the credit card fees and other costs, so if you write a check or pay cash, it's just gravy to them.
You can't even change large bills at a store, and many banks are closed now.
I needed smaller bills to pay cash for handyman work, and it was a hassle.
You need to buy something and pay cash in order to activate the money tray in a store. Then you can ask for change.
I just withdraw cash from my business checking in $20 bills. It doesn't seem to bother them; I could probably ask for some percentage of the bills to be 10's and 5's.
You just have to take care not to do too much at once ($10K?? don't remember) as some financial institutions might consider that suspicious. However I think quite a lot of business people must hold cash to pay undocumented workers and other casual labor, because I raise zero eyebrows withdrawing $5K at a time once in awhile.
You can't even change large bills at a store, and many banks are closed now.
I needed smaller bills to pay cash for handyman work, and it was a hassle.
You need to buy something and pay cash in order to activate the money tray in a store. Then you can ask for change.
I keep cash on hand so I always have "small bills" when I need them.
I keep a few grand in a fireproof lockbox just in case there's ever an, er, unplanned "bank holiday". From what I have read about the depression era, they tended to last a couple of weeks.
As for a cash discount ... some small businesses will charge you, say, 3% extra to use a credit card, and prefer that you write a check, in which case they don't charge the fee. Not quite the same thing as a cash discount, which is probably a transparent attempt to avoid recording the income and thus paying taxes on it.
What actually happens most of the time is that businesses jack up prices a bit to cover for the credit card fees and other costs, so if you write a check or pay cash, it's just gravy to them.
Do you still use checks in the US? Almost phased out here.
People struggle with what to do with private sales these days. So if you are buying a car privately, say for $20,000, how do you pay? Mostly not in cash, though perhaps you would if it is only $5,000.
Bank transfers are only immediate if both parties use the same bank, otherwise it can take 48 hours.
It is safe if both parties go to the bank of the purchaser and the bank either transfer the money electronically or produce a bank cheque, which are still in use. But with many banks closing that can be inconvenient.
Property settlements here in my state are almost all done through a third party platform called PEXA. When we last used it, come the settlement time, a few hundred thousand dollars could not be located, which was a little stressful. It had been moved to a different holding account and was found of course.
But almost made you want to return to the simplicity of cash.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I can't remember the last time I paid cash for anything until yesterday. We will use one of 3 debit cards or one credit card that has a good cash back program, and pay it off every month. I keep a $20 bill in my wallet and have had that same one for 5-6 years. Yesterday I had to pay $14.75 at the vehicle licensing place and they charge $2.25 for using a card, so I used the cash. I really can't remember the last time I used a check, though I do remember where they are stored. A few weeks ago I was amazed (and annoyed) when a woman in front of us at the supermarket paid with a check, it took forever.
There is a bit of a pushback here because of the 1.5% fee that is often added to the cost of electronic transactions. As well, quite a few places are giving a 5% reduction for cash. So saving 6.5%.
I have no problem with charging an electronic transaction fee. I have a problem with charging an electronic transaction fee when they require everyone to pay electronically. That's immoral, considering it's free to use cash.
Quote:
Originally Posted by MarisaAnna
Our local council has gone cash free and people are upset. They still want to be able to give the kids a few dollars at the swimming centres to buy an ice-cream, rather than having to give them a card.
I have a problem with businesses and places choosing to go cashless, but particularly when government does so. I have no idea about Austrailia, but some large cities here in the States have mandated that all businesses must accept cash. I'm not for much government intervention with business, but I support this. Cash is freedom and this country is all about protecting freedom.
Quote:
Originally Posted by MarisaAnna
Do you still use checks in the US? Almost phased out here.
I use checks every month. In fact, I've switched as many bills as I can over to being paid with a check because I really don't like the card companies and they make money off every transaction simply for being a middle man. That bothers me. But I also don't want this payment method to disappear, and the only way to do that is to keep it in circulation.
Now, just about everyone else I know rarely use checks anymore.
Quote:
Originally Posted by MarisaAnna
But almost made you want to return to the simplicity of cash.
I'm trying to. I only use my card for in-person transactions to purchase gasoline. The only thing I haven't figured out is how to purchase things online. I've also switched to buying as many things in possible in person for two reasons. #1: to pay with cash. #2: to help keep local stores in business and people employed. I'm kind of over the internet. It's had more of a negative impact on our society than I think most realize, even though it does have its benefits. (Yes, I understand the irony! )
Here in New Hampshire many of the businesses are pushing back against credit cards. Many restaurants offer a "discount" if you pay with cash. However, the discount is actually the menu price and if you do not pay cash you encounter a surcharge. This amount varies but most places it is 4 to 5% which may be more than the credit card company charges the restaurant.
Outside restaurants if a discount is offered it is usually off the retail price.
Here in New Hampshire many of the businesses are pushing back against credit cards. Many restaurants offer a "discount" if you pay with cash. However, the discount is actually the menu price and if you do not pay cash you encounter a surcharge. This amount varies but most places it is 4 to 5% which may be more than the credit card company charges the restaurant.
Outside restaurants if a discount is offered it is usually off the retail price.
The issue, as I know because we have a small business, is that the percentage charged the merchant for a credit card transaction is all over the place. If you are doing really well, you might get it down as low as 2% for some transactions. Or it might be 4%, or even 6%. What's more, there are a zillion different credit cards with different rewards systems, and the more rewards the customer is getting, the higher the percentage charged the merchant for a transaction with their card.
The only practical way for the merchant to deal with it is to charge a flat percentage rate for everyone. And of course, it's going to be on the higher side to cover those higher-charge transactions.
We love it when customers pay with cash, or even a check (very few do that any more) and do offer a cash discount.
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