I got irritated with the profusion of "no cash accepted" signs a few years back and started making a point of always carrying cash, to use whenever practical. I don't take it to an extreme, but I also don't want to live in a world where every transaction is trackable and all commerce is regulated by Visa, Mastercard, Apple, or Google.
r0m4n0 1 minutes ago [-]
[delayed]
lvspiff 2 hours ago [-]
In right there with you. I live in a small town and so whenever spending money at a local small business I try as much as possible to use cash. The shopkeeps who are also the owners are so appreciative as it's essentially a 5-7% "tip". It's difficult for them to keep good change though as people who do spend cash are either $20 or $100 bills which for a few $5-10 items consumes the small bills pretty fast. But in a no sales tax state so makes giving change easier (no coins)
bluGill 5 minutes ago [-]
> The shopkeeps who are also the owners are so appreciative as it's essentially a 5-7% "tip
this is false reasoning on their part. They never have thought about how much cash costs them so it looks like extra money but it really isn't. they need to count the time lost to counting the cash as you pay, then the time to count the money in the till at the end of the shift. Each count above is 2 counts at best the average is closer to 3 because you sometimes get it wrong. There is also theft costs which is generally ignored but a real problem.
credit cards is money right to the computer which is not only fast it makes less mistakes.
gruez 7 minutes ago [-]
>The shopkeeps who are also the owners are so appreciative as it's essentially a 5-7% "tip".
Because tax evasion? Otherwise credit card interchange rates are nowhere that high, typically 3%.
doubled112 1 hours ago [-]
> It's difficult for them to keep good change
I've felt this struggle from the other side working at a gas station attendant. We were only allowed to have $100 before the till made us dump it.
Can you break this $100 bill? Maybe if you pump another $50 in fuel, unless you want this roll of quarters too.
__MatrixMan__ 1 hours ago [-]
I have similar concerns, but I think it's the payment conglomerates you have to worry about. Visa knows how much you spent, Fiserv knows what you bought.
i think anyone seeing very many piles of merchandise abandoned at checkout would be wise to review such decisions. it would definately be a failure to consider area demographic
bruce511 2 hours ago [-]
Yes, I'm sure it varies by area.
But from a business point if view, cash is super expensive to deal with.
As a side-effect of an acquisition we inherited a small number of customers that paid in cash. Turns out it's expensive to bank that cash, it's a security risk, it's a risk to the person transporting it and so on.
In the general case, if most sales are already by card, the marginal gains of cash transactions are consumed by the cost of dealing with the cash.
I'm not saying stores should be cashless, but it's worth understanding that accepting cash is very much "not free".
al_borland 1 hours ago [-]
How does that cost of accepting cash compare to the interchange fees? I’ve heard business owners say interchange fees were their single largest expense after payroll.
I’ve also gotten discounts on large purchases for paying “cash” (check). They effectively deducted the interchange fee from my bill. If cash was so expensive to process, they wouldn’t be doing this.
bruce511 1 hours ago [-]
Again it'll vary by area. For us the cash was a lot more expensive. (Banks charge to deposit cash, and many of our bank branches don't accept cash anyway, so we have to go a bit further.)
Fortunately it was little enough that we didn't need a cash-transit vehicle, and it didn't affect our insurance.
Yes, I expect some merchants offer a cash discount, and that can add up for large purchases. But I'd prefer not to be carrying large amounts of cash. (We haven't had checks here for probably 15 years or so.)
We have a very efficient (and cheap) direct deposit system though, so I can pay via my phone straight from my bank app for a very nominal flat fee. So for large transactions that's akin to a cash discount.
cperciva 34 minutes ago [-]
The Bank of Canada did a report about this a few years back, and found that cash was the cheapest payment form for merchants to handle for transactions of up to $6 while debit cards were cheaper above that point; credit cards of course were never the best option for merchants.
For sure. Taking cash is basically a marketing expense not an actual way to get paid.
Shank 3 hours ago [-]
One thing I really love that Japan got right was the creation of e-money systems that are anonymous (you can get a Suica for 20,000 yen without any registration information), work offline (you don't need network at-payment, nor does the terminal), and are easily accessible (you can get them at any train station, you can charge them at any ATM or convenience store with cash). In contrast, a debit/credit card usually requires a lot more pain to get onboarded with. The closest thing is probably those silly visa prepaid cards you can buy, but they require a little work to use regularly.
cosmotic 3 hours ago [-]
Meanwhile, there's no apparent way to pay for a train using an American android phone (or at least I couldn't figure it out last year). One of the two apps refused to install on non-japanese phones, the other installed but refused to run. Had to pay with cash and it was a huge pain. Half the time I inexplicably had to do a fare adjustment, a hugely embarrassing moment blocking the turnstile, especially considering the culture there.
cosmic_cheese 3 hours ago [-]
That’s thanks to Android phone manufacturers, which don’t want to pay for a global license for the NFC tech involved. Apple on the other hand does pay for a global license and so iPhones and Apple Watches from anywhere work perfectly with Japanese cash card terminals. I use a digital Suica on my US iPhone during my visits.
Supposedly Pixels have the requisite hardware, but Google software locks the functionality to Japan. Some have been able to hack their Pixels to force it on but from what I’ve gathered it’s flaky when you do that.
seabass-labrax 2 hours ago [-]
Why should they pay for a licence? Once a technology reaches such ubiquity, there's a strong case for it being part of the technical infrastructure of that society. To me, that means that governments have a responsibility to ensure that the technology is widely available, and arbitrarily locking it behind commercial licences does not help achieve that. To the extent that patents and licensing provide an incentive to develop such technology, it's beholden on governments to foot the R&D bill in some other way.
lmz 3 minutes ago [-]
Using this sort of logic Windows would be mandatory and paid for by the government on all your 90s, 2000s laptops.
cosmic_cheese 1 hours ago [-]
I see your point, but at the same time fracturing product lines into a million micro-SKUs also isn’t great and should be discouraged.
decimalenough 1 hours ago [-]
The "standard" in question here is NTT Docomo's Osaifu-Keitai, which is used only in Japan and requires both licensing and a special flavor of Sony's Felica chip:
I can't really fault Android manufacturers for not wanting to pay extra for every phone in the world to get a bit of tech that's completely useless outside Japan.
fendy3002 36 minutes ago [-]
No surprises here, it's Sony. The same company that use propertiary memory card on PS Vita.
Brian_K_White 16 minutes ago [-]
Why the F should an interoperability fundamental like NFC require any such thing as a license in the first place??? It's utterly absurd to have ever allowed such a condition, despite it being a fact that everyone has been just living with for decades. If there is a problem, it is very definitely not thanks to anyone failing to pay a license.
trenchpilgrim 2 hours ago [-]
The trick is to get a Suica card, which as an foreigner you need to do at the airport train station before you leave to the rest of Japan.
You only need to buy it at the airport if you want a Welcome Suica. You can buy a regular Suica at any station with a multi-function machine.
The only real differences between the Welcome Suica and a regular one are the 500 yen deposit (Welcome Suica doesn't require a deposit) and the limited validity (Welcome Suica automatically expires after about a month).
ekianjo 7 minutes ago [-]
Funny fact they ran out of suica chips for a long time during COVID and it was impossible to buy one for almost a year
asciimike 1 hours ago [-]
Hilariously, the physical cards can only be topped up at add fare machines (cash only) or ATMs (cash only).
If you go down the "add a pasmo/suica on your phone" then you get into licensing issues with the other cabal (credit card issuers): you need to use an Amex to charge it via Apple Pay (IIRC Visa is now supported, but when I tried it last week my card was declined, so... YMMV).
cocogoatmain 59 minutes ago [-]
Assuming you’re a tourist, are you sure it’s not your bank flagging the transaction?
When visiting in April I too thought it was an issue with the card when trying to reload on apple wallet, but after two cards declined, found out the transaction was flagged haha
Same experience with reloading on the physical machines. It’s quite amusing
rtpg 2 hours ago [-]
In some stations now there are some entry points that use "standard" visa touchless payments that can be used now I think.
Your android phone likely doesn't have the right NFC tech that iPhones have (google Felica, it's a separate NFC standard used basically only in Japan. Apple builds it into all of their iPhones, most android phones outside of Japan do not). It's mostly just a case of divergent tech, along with Apple being willing to spend money to avoid SKU differentiation/support people traveling in Japan.
Shank 2 hours ago [-]
There’s not a reasonable solution using global Android phones, but you could obviously just buy a physical IC card and use that, which is what I was suggesting here in the first place.
csinode 3 hours ago [-]
> work offline (you don't need network at-payment, nor does the terminal)
Surely this is massively vulnerable to double spend attacks?
rtpg 2 hours ago [-]
My understanding here is that there's less risk of double spends here because of the extreme difficulty of cloning the smartcards involved.
So to execute the double spend you would have to find an authorized card provider, convince them to load and sign your double spend-capable program onto the smartcard (with their signature!), and then be found out within a week when reconciliation is off.
So doing a double spend will be found out, and not only will you be on a bunch of cameras doing the thing, whoever made your card will also have been compromised.
I think that in practice the "eventual" reconciliation is fairly quick nowadays. Just that the offline spend can happen quickly, and then the packet gets sent over the wire maybe a minute later rather than before the spend is approved.
Shank 2 hours ago [-]
> I think that in practice the "eventual" reconciliation is fairly quick nowadays. Just that the offline spend can happen quickly, and then the packet gets sent over the wire maybe a minute later rather than before the spend is approved.
This is definitely the case, and it's also "relatively instant" in the happy path. There are cases like vending machines, or during system outages where the reconciliation happens much later, but those instances are definitely becoming rarer!
beeflet 2 hours ago [-]
Or you can extract the secrets from a smartcard using a variety of side-channels. But the juice is rarely worth the squeeze.
rtpg 2 hours ago [-]
Maybe you can, but I had the impression that it would be quite difficult given physically unclonable function-y stuff. Handwave-y and I have no clue if Suica-style payments use it but that was my impression.
Shank 2 hours ago [-]
> Surely this is massively vulnerable to double spend attacks?
FeliCa uses mutual authentication with eventual bookkeeping and sync. I believe that there are some theoretical attacks on older cards but the terminals are regularly synchronized and get a ban list. In-practice, you’ll also be reported to the police, probably.
raincole 34 minutes ago [-]
In Taiwan, there is a similar system called EasyCard. That works offline.
...And as you expect it is vulnerable to double spend attacks. Hilariously the vulnerability was revealed in 2014 and nothing has been done to mitigate it. Yes, you can double spend in Taiwan today if you don't mind risking jail time.
From my (rudimentary) understanding of CAP, there is no prefect solution to this. I wonder how Japan handles it.
andreareina 3 hours ago [-]
It's been in widespread use for a while at this point so in practice probably not. I imagine the authentication keys to present as a card are very tightly controlled and not just anyone can become a provider.
beeflet 2 hours ago [-]
Not nessisarially because it can take advantage of TEEs in smart cards
lmm 2 hours ago [-]
Not really - what's the attack? You could maybe somehow clone a card with a balance on it and spend that balance twice, if you can figure out that a particular terminal is offline (or have a way to take it offline), but how do you turn that into an attack that you can scale enough to cover the fixed costs? You're not getting your own terminal without a contract and due diligence on your company, so you can't really pull off an attack that needs to control both sides.
lisbbb 2 hours ago [-]
But Japanese people largely still use cash, don't they?
lofties 2 hours ago [-]
This is no longer true. With the advance of "cashless" systems that were heavily pushed and promoted by the government, cash payments have dropped significantly![0] Cashless payments now sit near 50%, up from 16% 10 years ago.
From my experience, apart from small restaurants and yatais (basically food carts), as well as local buses in small towns, you could get by using a credit card / Suica perfectly fine.
trenchpilgrim 2 hours ago [-]
This isn't as true as it used to be. Mobile pay and IC-type cards have risen in popularity, and if you have a credit card, it's accepted in many places.
ekianjo 9 minutes ago [-]
Suica is far from being accepted everywhere. in Japan cash is your best bet.
mappu 3 hours ago [-]
I think a lot of the motivations are AML. Suica has a low maximum balance, that probably restricts the nefarious use cases.
Shank 2 hours ago [-]
I would personally argue that 20,000 yen is not a low maximum balance for day-to-day purchases like food, because you can recharge so easily.
Before Suica (and a bit concurrently), JNR and later JR issued "orange cards" that included both high value formats and lower value formats. The "high value" cards were 5,000 yen and 10,000 yen respectively, so the new maximum is 2x the previous "high value" orange cards that they abolished.
The real win with e-money is not getting change, in my opinion. Carrying 20,000 yen in cash is easy when it's 2x 10,000 notes, but when it's a mix including coins, it's a pain.
CapricornNoble 33 minutes ago [-]
>Carrying 20,000 yen in cash is easy when it's 2x 10,000 notes, but when it's a mix including coins, it's a pain.
Carry a coinpurse. I use an old faux-suede Samsung camera pouch.[1] Plus it's fun when someone is running an errand for you, like getting you a snack from the konbini across the street, and you plop your coinpurse on the desk with a thud, then pour out a handful of 500-yen coins and say "this should cover it", like a feudal lord.
to me suica seemed limited (for a traveler). you could get one and charge it up with a credit card, but I don't think you could recharge it that way. You could also not get multiple ones.
I believe there is a less limited suica card you can get (not a traveler), but I think you need a japanese address.
WillDaSilva 58 minutes ago [-]
I was able to get a Pasmo card as an alternative to Suica, and it was rechargable with cash. I also did the same with an Icoca card. I didn't need a Japanese address in either case. I just bought the cards from machines at a couple of the larger metro stations. They could be reloaded with cash at any metro station.
Shank 2 hours ago [-]
> I believe there is a less limited suica card you can get (not a traveler), but I think you need a japanese address.
You don’t need a Japanese address. Simply visit any Suica vending machine, change the language to English, and purchase anonymous Suica.
There are various preloaded options you can purchase, but typically you cannot recharge e-money via cash.
m463 2 hours ago [-]
the vending machine card was the red one, right?
I though there was a (blue?) one that japanese citizens could get, sent to their address.
veeti 1 hours ago [-]
The red is a 30 day card for tourists. The green is valid for many years. You can get both anonymously, but there was a chip shortage a while back which meant only the red cards were widely available.
mapt 2 hours ago [-]
Those prepaid visa cards don't actually exist, I think they were killed by AML/KYC. Instead, they appear to be "prepaid visa gift cards" accepted at less than a hundred large chains.
Larrikin 2 hours ago [-]
This is wrong.
The visa gift cards work pretty much everywhere, unless they are specifically disabled by the establishment. They do show as a gift card but all the POS systems are perfectly capable of splitting the payment now. I've only seen them disabled at small restaurants that have dealt with scam charge backs and sites like Raise that deal in gift cards and gift card scams as part of their business.
Usually they simply aren't worth it because of the activation fee. It's always more than the highest paying credit card cash back. However sometimes stores, run sales where they waive the activation fee, but there's always a limit.
jppope 1 hours ago [-]
I prefer cash, not for the reasons mentioned.
First, cash makes me really think about what I'm buying. It doesn't poke you the same way when you tap a card... which is obviously one of the main reasons they want you do use cards. When I use cash, I am reminded of when I didn't have a lot, which keeps me from spending without thought.
Next, its a hallmark of the middle class to spend money that you don't have. Myself and some other people pay their cards off every month but that isn't the norm. Many people keep a balance... I do not want to be one of those people. When you use cash, its stupidly easy to know if you have the money or not.
Its also easier to do social activities when you have cash. Need to split a tab, here's the money. I'll buy the next round, heres the cash.
Also, it may just be me but keeping a decent stack of bills is like a little pat on the back for the hard work. Its a reminder that hard work pays off, which I can see when I buy a coffee, or some bread or something.
Reasons why I don't like cash: family members tend to treat my wallet like an ATM.
Lastly, if you want to make some people feel good (e.g. servers, bartenders, etc) tip them with $2 bills
fossuser 36 minutes ago [-]
Yes! It's fun to just order 500 $2 bills and carry some everywhere for tips. I do this all the time, it's an easy way to add a little whimsy into someone's day.
Wozniak famously went further and would order sheets of them uncut (costs more), then pay a shop to perforate them for him so he could peel them off for people (making it look really fake).
He had a funny story about doing this at a casino for a slot machine and getting interrogated by the secret service iirc where he handed the guy a fake ID where he had an eye patch and it said he was a laser operator or something. He played dumb about the bills to look more suspicious instead of explaining the truth.
Hard to tell if it was just a tall tale, but given that it was Woz it was probably mostly real.
geoduck14 1 hours ago [-]
>Myself and some other people pay their cards off every month but that isn't the norm. Many people keep a balance
I've heard this statistic a lot, but I haven't seen any recent evidence it is true. I used to work for a bank, and our Credit Card holders would (mostly) pay off their balance every month.
We called them Transactors vs Revolvers. 85% of our CC were Transactors, and some of them would pay down multiple times a month
whycome 1 hours ago [-]
$2 bills?? You’re gonna get the occasional one who thinks you’re scamming them.
It’s crazy that Canada, being so similar to the US, got rid of the 1 and 2 like 30 years ago.
fossuser 36 minutes ago [-]
I had a funny experience with a French cheese shop in SF for this - I tipped a $2 bill and he called me back in confused thinking it was fake, but was good natured when I showed him it was real.
crooked-v 1 hours ago [-]
It seems to be much less common these days (probably because smartphones make it easier to look things up), but there are assorted news stories about people being accused of counterfeiting or even arrested for trying to pay for things with $2 bills.
JustExAWS 21 minutes ago [-]
You realize that debit cards exists right?
Splitting a tab is a simple matter of asking for separate checks and at the bar, separate tabs.
lisbbb 2 hours ago [-]
The main problem I have with cash is that we don't have denominations large enough to buy much these days thanks to inflation. The $100 is the new $20, but ATMs won't serve $100s. I buy gas for my car, it's at least $35 right there. Groceries run $80-$120 every trip now. I don't know if revaluation is possible, but we need it.
I'm not worried about dirty cash as compared to every purchase being tracked and all the fees for using services like Venmo or whatever exchange service du jour, and they all apply their petty moralizing. It's not the way forward if you value freedom and privacy.
dlcarrier 2 hours ago [-]
My banks ATM defaults to $100 bills, and it takes a bunch of taps to get only $20 bills.
ProllyInfamous 1 hours ago [-]
My local credit union has switched entirely to machined staff, even inside locations (with attendant staff for transaction impossible via ATM).
For some silly reason, the machine stocks only these bills: $5$ $20$ $100$
Why waste an entire cash dispenser on fives when it could instead be handing out fifties (or at least tens)... especially at an ATM!?
I think it's time for a $1000 bill, again. Let's get rid of bills less than $10$ (coins instead); also, get rid of pennies [in progress] and nickels.
*I'd suggest nix'ing this one, too, if it were physically larger [but isn't]
I only stock my wallet with $100$ $50$ $10$ $2$ [bills], and immediately get rid of ones ($1$) when possible. I do not have any credit cards.
s5300 46 minutes ago [-]
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spankalee 2 hours ago [-]
The article and none of the comments mention rewards yet, which are the biggest reason to use cards!
Credit card processors charge large fees on transactions, which is a huge tax on just about... everything.
You can make a lot of that tax back via rewards. And not every card user has a good rewards-paying card - it's usually the more rich that do - so rewards function as a wealth transfer from the less rich to the more rich.
Very few stores have lower prices for cash, and processors try to ban that via their contracts when they can. If you pay with cash you pay the higher price to cover the credit card fees anyway, so you're just subsidizing the rewards earners. Might as well recoup some of that yourself.
al_borland 1 hours ago [-]
Remember that the credit card companies wouldn’t offer points if they weren’t profitable. People tend to spend more on a credit card than they do with cash, and it’s not enough to make up with points.
I’m generally a pretty responsible credit user. I pay the whole bill each month and never paid a dime in interest. But I’d be lying if I said I never justified a slightly larger purchase that I would have otherwise made by calculating the “discount” from the points. Doing this just one time on a modestly large purchase can effectively negate all the points you might earn in a given year.
I found even moving to a debit card helped in two ways. One, the point game goes away. But I think more importantly, when spending on a debit card you see the balance go down, so there is an instant and clear impact of the expense. With a credit card the number goes up, and you have to invert it and do the math in your head to feel the expense in the moment, which most people don’t do. And when people look at their bank balance at it hasn’t moved, they think they still have that money to spend. It’s subtle, you might not realize it, but those are the games they play. I’ve probably saved more money from simply spending less, than I would make in points.
I do keep one credit card around that I use for my recurring online payments. These are set it and forget it, so the psychology plays less of a role, as far as I can tell. And I review all the stuff on that recurring list on a regular basis to keep it lean. I have to spend $5k to make $100 in points. Who cares? It’s a lot easier to trim $200 or even $500 out of $5k in terms of spending, if I’m really looking to maximize my savings. Not to mention, the points aren’t cash in your pocket, they are an excuse to spend even more.
Let’s say I have points to get a free flight. Great, now I’m also spending money out of pocket on a hotel, meals, entertainment, etc. That “free” $600 plane ticket actually costs $5k in other expenses, but it’s ok, because we’re earning $100 more in points for spending that $5k.
It’s a trap. It’s subtle, it might feel like a win, but they’re coming at you from several different angles. It’s not just about the people paying interest on their balance. They make about as much on the interchange fees from high volume users as they do from those interest payments. Those points are also a trick to get you to swipe more to boost their interchange fee profits.
JustExAWS 4 minutes ago [-]
> Let’s say I have points to get a free flight. Great, now I’m also spending money out of pocket on a hotel, meals, entertainment, etc. That “free” $600 plane ticket actually costs $5k in other expenses, but it’s ok, because we’re earning $100 more in points for spending that $5k.
I just flew to London for free and our hotel was free (the Westminster) on points. Earlier in the year we stayed in a $900 a night hotel free on points in Quepos Costa Rica. We flew there on a Delta companion pass by having a $350 AF Delta credit card that also has a $200 Hotel credit (Delta Business Platinum).
I almost always fly to see my parents free on points (AirFrance 20K points to book Delta flights round trip). Of course I don’t pay for anything when I go home.
But if you are getting most of your points via spending instead of sign up bonuses, you’re doing it wrong (See r/churning). That is unless you do a lot of business travel.
Either way, we travel a lot anyway. Credit card points increase our travel budget.
cindyllm 52 minutes ago [-]
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aleph_minus_one 2 hours ago [-]
>
The article and none of the comments mention rewards yet, which are the biggest reason to use cards!
In my observation being that much incentivized by the reward system seems to be a very US-American thing. In Germany, I have never heard anybody seriously talking about that they love the reward system of their credit card. I would claim that at most some (but I think rather few) people in Germany consider some very specific reward that their credit card has as a slight convenience - but nothing more.
JustExAWS 3 minutes ago [-]
That’s because most countries cap merchant fees so credit card companies can’t offer as lucrative awards
devilbunny 1 hours ago [-]
Credit card financial protections for Americans are one of the most strongly pro-customer sets of laws we have in the US. The rewards are a nice way to get some of your money back, but you really can’t be cleaned out by fraud on actual credit cards (not debit cards using the MC/Visa logo and payment system). “That is an unauthorized charge, please cancel the card” is perfectly acceptable. In theory you are on the hook for the first $50, but in practice almost no bank holds you to that.
The consumer essentially can’t be accused of not exercising due caution unless you have ignored at least one bill with fraudulent charges. This is real value, so once you’ve bought into the system, getting the rewards is a major incentive to choose one card over another.
wilkystyle 35 minutes ago [-]
Yep. I exclusively pay via credit card for this reason alone. (I have my autopay set to pay down the entire balance each month)
Rewards are nice, but not the primary reason I use a credit card.
seabass-labrax 1 hours ago [-]
This point - that EMV cards have the effect of siphoning money out of many countries to the USA in payment processing fees - is one of the primary motivations behind the development of Wero[1]. For those that haven't come across it yet, it's a new payments system based on 'instant' SEPA wire transfers. It is starting to gain ground now, particularly in Germany and the Benelux. I'm not aware of any smartcard-based implementations yet, though - currently it functions more like WeChat typically does, where you need to authorize the transaction on a smartphone.
Various studies have shown that, for the investment needed to "maximise your rewards" (ie time needed to research the different cards on the market / read the fine print of your chosen product / put through payments on a high rewards card; money on signup fees, recurring fees, transaction fees, etc), you'll achieve a much better ROI just investing the equivalent time and money into an index fund.
JustExAWS 2 minutes ago [-]
How much time do you really think it takes to subscribe to the RSS feed for “The Points Guy”?
moduspol 59 minutes ago [-]
Perhaps, although there are multiple “2% on everything uncapped” that are pretty easy to get with no annual fee. Set up automatic payments and you’re golden.
Still wouldn’t recommend them for anyone who’s not particularly good with money, but 2% back for almost no effort is a pretty good trade-off. Keeping track of rotating quarterly bonuses? Yeah—-then it’s worth thinking about ROI of your time.
mercutio2 1 hours ago [-]
Can you point to these studies?
Anyone who gives a 3% discount for cash will get cash from me, but I already have all my money in index funds. The effort to maximize points is “use this credit card, get the cash back”.
It’s really not that much effort, for rich people with excellent credit. It is of course a hugely regressive system, but that wasn’t the argument you made.
JustExAWS 37 seconds ago [-]
If you have a 2x points card and not cash back, you can still come out ahead with using a credit card over 3% cash back.
arealaccount 1 hours ago [-]
Got a link or two?
lisbbb 2 hours ago [-]
Most rewards systems have brutally diluted their points, same as airline "miles."
dlcarrier 2 hours ago [-]
Most of the places I buy from charge an extra 3% for credit card transactions, so rewards cards are just giving your money back, but worse.
zippergz 2 hours ago [-]
Curious what part of the world this is in. I can recall a grand total of three places I've seen in my area do this. It's a tiny minority here.
kxrm 32 minutes ago [-]
In the DC area we are seeing more places offer cash discounts. At restaurants it is listed on the menu. With local (not national) retailers you have to ask. However I do save a bit by avoiding cards at the right places. Sometimes as much as 6%.
dlcarrier 1 hours ago [-]
A less urban but not rural part of California.
I do tend to shop at low-margin places like WinCo Foods. There's also an auction house I buy big ticket items from. Both charge credit card fees. I've never seen a gas station anywhere in the US not charge extra for credit cards, and most also charge extra for debit cards. The DMV also charges a fee. I don't know if Grocery Outlet charges a fee, but I do shop there too.
Also, pretty much every recurring charge I have, e.g. from T-Mobile, Comcast, and my water supplier and mortgage processor all charge credit card fees, if I use a card instead of ACH transfers.
bfg_9k 1 hours ago [-]
Pretty much anywhere in Australia that isn't a big chain
dlcarrier 1 hours ago [-]
I've heard electronic direct payments (like PayPal) are much more common in Australia than the US. Do they charge similar fees to credit card transactions?
paulgerhardt 10 minutes ago [-]
> Cash is also—I regret to say—disgusting.
Not true!
For a while I was manufacturing cash and did some research on the hygiene component.
Surprisingly, I learned tap to pay was the most hygienic iff one didn’t use a common terminal for tips or signing.
Coins were the second most hygienic with a germ score of 168RLU .
Cash third.
Credit fourth, and dead last was shared payment terminals one physically touched (this includes tap to pay if one “answers a couple of questions.”) A separate study found smart watches were dirtier than terminals.
Reports in this space are full of confirmation bias so take the RLU scores with a grain of salt. Likewise some cultures have cleaner methods of dealing with cash than others.
cosmic_cheese 3 hours ago [-]
The paragraph about the inconvenience of cash resonates with me. It’s a pain to manage and easy to lose or get stolen. At least if I drop my wallet full of cards, in a couple of calls any fraudulent transactions will be voided and the cards turned useless, but stolen cash is just gone.
That’s not to discount its upsides but its downsides shouldn’t be handwaived away either.
dlcarrier 1 hours ago [-]
I've never had physical cash get stolen, but multiple times I've had to get new credit card numbers, because mine was revealed in a data breach. Even if I had been robbed, the cash I have on hand is a fraction of a percent of either my credit limit or bank account balance.
I'm only near a few dozen people per day at most, and the chances of one of them trying to rob me are near zero, and the most they could get is a fraction of what they could access through a stolen card number. Meanwhile, there's constant attempts for data breaches at payment processors and those they work with, so my chances of being harmed by a data breach are much higher than by a robbery.
Also, you are paying insurance premiums for those voided transactions. Vendors are chanrged around 3% for card transactions, and they pass that on to the customer, although some only pass it to their card customers, with a surcharge for card transaction.
al_borland 51 minutes ago [-]
Not only data breaches, but people skimming or copying the card. I went to a restaurant a while ago and some random employee decided to grab our bill to “help out”, not our waitress. I was splitting the bill with someone else and both our cards had fraudulent charges in the following days. I still find it crazy that we let waitstaff walk away with our cards in the US.
One of my cards is very thick and metal. I found that one had fraud on it at a much higher rate than any of the plastic cards I’ve had. It was heavy to the point that it would get comments from about 40% of the people I handed it to. I can only theorize, but my guess is that card signaled a higher value and was more likely to draw the attention of someone who may care to go on a spending spree.
While I can report the issues and get a refund and a new card, it was always a real hassle. Since I stopped carrying that card and use it exclusively online, I don’t think I’ve had a single incident in several years. I used to have it happen about once per quarter.
aleph_minus_one 2 hours ago [-]
> So why do I continue using cards? For the same reason you probably do: convenience.
Quite the opposite: when using some electronic payment method, I better make careful notes of each transaction so that I can detect whether some fraud happened (which happens for basically every method of digital payment). On the other hand, for cash this is much less necessary.
Gathering6678 1 hours ago [-]
I was surprised to know recently that, in France apparently, there are quite a lot of shops that don't accept cash. I thought it was going to be the other way around: shops stipulating "cash only". In my country, there are actually regulations mandating the acceptance of cash (unless it's an unmanned booth or certain vendoring machines, if I remember correctly).
TheAlchemist 47 minutes ago [-]
One additional feature for paying in cash, is from the business side - a lot of small businesses declare only a part of what's paid in cash, and the rest is kept 'tax free'.
While it breaks the law, I kind of feel sympathetic to it, given how much the law tends to advantage big companies.
gghffguhvc 41 minutes ago [-]
Paying tax isn’t a big company vs small company thing. A single company not paying tax isn’t that bad directly but it can be infectious. “They don’t pay neither should I” attitude is a problem.
TheAlchemist 23 minutes ago [-]
I know, but then you look at effective tax paid by big companies and it makes you wonder.
1 hours ago [-]
FriedPickles 26 minutes ago [-]
Contactless Bitcoin lightning payments. Best of both worlds.
superkuh 3 hours ago [-]
I'll always remember the time when the tourist town of Ely, Minnesota, USA had it's single fiber internet cable cut. Pretty much all the groups there trying to rent canoes, equipment, hotels, etc with corporate cards weren't able to do it. We were lucky our group brought cash.
A society depending entirely on corporations for currency function is incredibly fragile in addition to corporate payment services being rent seeking, privacy invading, transaction morality deciding monsters. At least in the USA.
Governments should definitely be regulating and requiring those offering paid goods and services to accept cash. And not just for paying debts.
hedora 57 minutes ago [-]
At the very least, they probably should require all vendors to accept imprints (the old offline compatible paper-based credit card protocol).
It’d better if the government just mandated the eCash system in the back half of Applied Cryptography (which is similar to the Japanese system discussed elsewhere in this thread).
traeregan 3 hours ago [-]
I never thought I’d see Ely mentioned on HN.
http://moosebay.com is a close family friend who lives in and guides out of Ely. I had a great trip there many years ago.
I’ll have to ask them about your story, surely they remember it happening.
SchemaLoad 3 hours ago [-]
This seems like the ideal use case for satellite internet like starlink though. Main fiber connection, but a satellite backup. The trend I predict is just more robust redundant connections, not people giving up on cards.
frosted-flakes 1 hours ago [-]
Anyone who tried to pay for anything in Canada on 8 July 2022 knows that it's not that simple. The entire Interac network was shut down for over 15 hours, which meant that debit and credit payments through POS terminals were halted nationwide. It was chaos, I was away from home and was unaware that anything had happened because I had no phone service. There were long lines everywhere, and a stranger paid for my coffee with cash, because the single toonie I happened to have wasn't enough.
The cause of the failure was multi-fold: all of Interac's Internet links relied on the Rogers' network in one way or another, so when one went down, so did the other.
AnimalMuppet 2 hours ago [-]
I remember the day I took someone on a date, only to run into a state-wide power outage.
We found a restaurant that had gas grills. They couldn't make french fries, because their fry machine was electric. They couldn't make shakes. They were pouring soda from bottles they had bought at a grocery store. They were working by candlelight and adding up the bill on a hand calculator, but they were doing business like crazy. I think they were not doing credit cards, but it was long enough ago that they might have been taking imprints. Certainly today they would not be able to take cards, unless they had battery backup or a generator, since many cards don't have the raised digits any more.
supportengineer 2 hours ago [-]
If you like to travel, you can essentially travel "for free" by simply doing these two things:
1. Put all of your purchases on the travel rewards card
2. Pay it off in full every month, no exceptions
dlcarrier 2 hours ago [-]
What do you mean by "for free"? Would you be paying for your travels in full, the next month?
crooked-v 1 hours ago [-]
I think it's a reference to awards miles/points... but that's definitely not "for free", you're paying for it with the 2%-3% markup imposed by the merchant processing companies and at the baseline just getting that same amount back on the other side. With that said, with some careful finagling you can get outsized value out of it, especially for flight or hotel upgrades.
kshahkshah 3 hours ago [-]
The big benefit is tipping in cash. Buys a lot of good will… and free drinks
arealaccount 59 minutes ago [-]
And in the flip side not being pressured to tip on things you wouldn’t normally tip for via toast machine
2 hours ago [-]
etbebl 2 hours ago [-]
How milquetoast... "Young people want to pay with cash more, and there might be interesting reasons for that, but ehh cards are convenient and cash is gross so still no cash for me!" What's the point of this?
brettp 3 hours ago [-]
Australian here, like the author. Apple Pay (and equivalents) work _everywhere_ here, including at the tiniest market stalls, and for the smallest purchases. I stopped carrying my wallet the moment my driver licence was available on my phone, the last piece of plastic I was mandated to carry around.
While the paranoid nerd in me might occasionally wonder about all my spending being tracked, watching someone fumble with magic pieces of ~paper~ plastic and metal in a supermarket now looks as quaint to me as someone taking their pig to market to exchange for some eggs and bread.
rolph 2 hours ago [-]
where is that market ? thats exactly my prefered method of commerce.
ausssssie 2 hours ago [-]
Yes everywhere. Car parks. Schools. Cafes. Antique shop in a quaint village. The only cash only places are really just trying to evade tax, or are some 50 year old business refusing to keep up out of stubbornness.
And now we rarely have the "it wont connect lets try again it takes 2 minutes" dance of 10 years ago.
rubatuga 2 hours ago [-]
Great for bargaining and getting cash discounts. Have extra coins? Tips are appreciated.
dartharva 30 minutes ago [-]
I started abandoning cash around a decade ago, and have steadily moved to mobile-only payments for the past five years (India has ubiquitous instant bank-to-bank transfers through mobile payment platforms).
Not having to carry your wallet around and make trips to ATMs is rather convenient, but in aggregate, I'll still NOT recommend this. I realize I have ended up spending several times I would have had I stuck to cash. There seems to be a psychological aspect that makes you keep track subconsciously of how much you are spending when you have to physically draw cash. With mobile payments? It's just scan a code and forget about it. I am planning to stop by the end of this year.
petermcneeley 2 hours ago [-]
No worries, just be careful which protests you attend.
gedy 3 hours ago [-]
I buy any fast food with cash. I don't need a helpful Insurance company data mining my habits.
jojobas 1 hours ago [-]
Of all things, rejecting cash because it's a social construct is a bit unexpected.
bombcar 3 hours ago [-]
You can pay with "cash" while using cards.
Gets some of the advantages - not all.
doctoboggan 3 hours ago [-]
How can you replicate the anonymity of cash with a card?
tossit444 3 hours ago [-]
Prepaid debit cards usually do not require identification.
bombcar 1 hours ago [-]
Exactly, or if you care about the credit aspect, debit cards alone.
Or if you shop regularly at a given store, reloadable gift cards are a decent substitute.
But cash isn’t terribly scary.
hopelite 3 hours ago [-]
Maybe read the post before commenting?
singpolyma3 51 minutes ago [-]
Cash is honestly the worst. I've boycotted cash only places most of my life and have never carried cash as an adult. It was may e the best we could do in history but it serves no purpose now.
MarcelOlsz 50 minutes ago [-]
Privacy.
cyberax 2 hours ago [-]
> I always get a chuckle from people saying you shouldn’t use loyalty cards in grocery stores and the like… when they pay with credit cards!
Stores aren't allowed to use credit cards to track purchases or to link customers to loyalty programs. That's why you need to use a separate loyalty card, or a store-branded credit card.
iwanttocomment 1 hours ago [-]
Here in the US, it's absolutely allowed.
Walmart, for example, will by default add in-store purchases using a credit card (and no other identifying information) to the purchase history on a Walmart.com account set up with the same credit card.
You can only disable this tracking by going into Account > Settings > Privacy > Data Sharing in your Walmart.com account, where you'll find an option that states "Allow us to automatically add store purchases to your purchase history using credit card."
throwaway22032 3 hours ago [-]
Budgeting with the data trail of a card is significantly easier if you have a lot of transactions.
It's also generally cheaper due to cashback and other incentives.
Other than that I've always found the idea that cash is "inconvenient" a bit of a child-like argument. Okay, yeah, you have to count some coins, you also have to brush your teeth and use a knife and fork instead of your hands, come on.
beeflet 2 hours ago [-]
The necessity of making change is major usability/privacy/fungibility roadblock that shows up in more than just cash. For example, it presents a problem for chaumian e-cash or other private money systems like pre-MLSAG monero.
If it's possible to do the equivalent of cash, but with some sort of smartcards that exchange some sort of offline zero-knowlege proofs, then that would be preferable over physical cash, because it could eliminate the need for change or marked bills and it would be even more private.
dlcarrier 1 hours ago [-]
Most of the places I shop charge a credit card fee that's far more than cashback would get you, so oftan that benefit is moot.
theamk 2 hours ago [-]
We improve our life with technology all the time. Electric lights, refrigerator, AC, washing machine, dishwasher, electric toothbrush...
Nothing "child-like" in trying to make your life better, even in small ways.
throwaway22032 2 hours ago [-]
Sure.
I suppose my argument is along the following lines - books are too cumbersome so let's scroll Instagram instead.
It's a fake argument, it's not that big a deal, you just didn't care enough about reading books.
XorNot 1 hours ago [-]
Why would I care about how I pay for things though? You're the one saying I should value some particular method over others. But the reality is I don't care at all: I'm trying to buy milk and go home.
throwaway22032 1 hours ago [-]
Because there are significant privacy benefits and benefits in removing the middlemen etc.
If you don’t care, you don’t care. I gave up a long time ago too. In that case it would be annoying enough if the privacy preserving card were just 1cm longer or something that you wouldn’t use it.
temptemptemp111 1 hours ago [-]
[dead]
neilv 2 hours ago [-]
Buried. Remember to upvote if you comment.
124. Not Paying with Cash (rubenerd.com)
20 points by mikece 1 hour ago | flag | hide | 40 comments
Rendered at 03:19:15 GMT+0000 (Coordinated Universal Time) with Vercel.
this is false reasoning on their part. They never have thought about how much cash costs them so it looks like extra money but it really isn't. they need to count the time lost to counting the cash as you pay, then the time to count the money in the till at the end of the shift. Each count above is 2 counts at best the average is closer to 3 because you sometimes get it wrong. There is also theft costs which is generally ignored but a real problem.
credit cards is money right to the computer which is not only fast it makes less mistakes.
Because tax evasion? Otherwise credit card interchange rates are nowhere that high, typically 3%.
I've felt this struggle from the other side working at a gas station attendant. We were only allowed to have $100 before the till made us dump it.
Can you break this $100 bill? Maybe if you pump another $50 in fuel, unless you want this roll of quarters too.
How this is even legal baffles me
But from a business point if view, cash is super expensive to deal with.
As a side-effect of an acquisition we inherited a small number of customers that paid in cash. Turns out it's expensive to bank that cash, it's a security risk, it's a risk to the person transporting it and so on.
In the general case, if most sales are already by card, the marginal gains of cash transactions are consumed by the cost of dealing with the cash.
I'm not saying stores should be cashless, but it's worth understanding that accepting cash is very much "not free".
I’ve also gotten discounts on large purchases for paying “cash” (check). They effectively deducted the interchange fee from my bill. If cash was so expensive to process, they wouldn’t be doing this.
Fortunately it was little enough that we didn't need a cash-transit vehicle, and it didn't affect our insurance.
Yes, I expect some merchants offer a cash discount, and that can add up for large purchases. But I'd prefer not to be carrying large amounts of cash. (We haven't had checks here for probably 15 years or so.)
We have a very efficient (and cheap) direct deposit system though, so I can pay via my phone straight from my bank app for a very nominal flat fee. So for large transactions that's akin to a cash discount.
https://www.bankofcanada.ca/2017/03/staff-discussion-paper-2...
Supposedly Pixels have the requisite hardware, but Google software locks the functionality to Japan. Some have been able to hack their Pixels to force it on but from what I’ve gathered it’s flaky when you do that.
https://en.wikipedia.org/wiki/Osaifu-Keitai
I can't really fault Android manufacturers for not wanting to pay extra for every phone in the world to get a bit of tech that's completely useless outside Japan.
https://www.jreast.co.jp/en/multi/welcomesuica/purchase.html
The only real differences between the Welcome Suica and a regular one are the 500 yen deposit (Welcome Suica doesn't require a deposit) and the limited validity (Welcome Suica automatically expires after about a month).
If you go down the "add a pasmo/suica on your phone" then you get into licensing issues with the other cabal (credit card issuers): you need to use an Amex to charge it via Apple Pay (IIRC Visa is now supported, but when I tried it last week my card was declined, so... YMMV).
Same experience with reloading on the physical machines. It’s quite amusing
Your android phone likely doesn't have the right NFC tech that iPhones have (google Felica, it's a separate NFC standard used basically only in Japan. Apple builds it into all of their iPhones, most android phones outside of Japan do not). It's mostly just a case of divergent tech, along with Apple being willing to spend money to avoid SKU differentiation/support people traveling in Japan.
Surely this is massively vulnerable to double spend attacks?
So to execute the double spend you would have to find an authorized card provider, convince them to load and sign your double spend-capable program onto the smartcard (with their signature!), and then be found out within a week when reconciliation is off.
So doing a double spend will be found out, and not only will you be on a bunch of cameras doing the thing, whoever made your card will also have been compromised.
I think that in practice the "eventual" reconciliation is fairly quick nowadays. Just that the offline spend can happen quickly, and then the packet gets sent over the wire maybe a minute later rather than before the spend is approved.
This is definitely the case, and it's also "relatively instant" in the happy path. There are cases like vending machines, or during system outages where the reconciliation happens much later, but those instances are definitely becoming rarer!
FeliCa uses mutual authentication with eventual bookkeeping and sync. I believe that there are some theoretical attacks on older cards but the terminals are regularly synchronized and get a ban list. In-practice, you’ll also be reported to the police, probably.
...And as you expect it is vulnerable to double spend attacks. Hilariously the vulnerability was revealed in 2014 and nothing has been done to mitigate it. Yes, you can double spend in Taiwan today if you don't mind risking jail time.
From my (rudimentary) understanding of CAP, there is no prefect solution to this. I wonder how Japan handles it.
[0]https://www.meti.go.jp/english/press/2025/0331_001.html
Before Suica (and a bit concurrently), JNR and later JR issued "orange cards" that included both high value formats and lower value formats. The "high value" cards were 5,000 yen and 10,000 yen respectively, so the new maximum is 2x the previous "high value" orange cards that they abolished.
The real win with e-money is not getting change, in my opinion. Carrying 20,000 yen in cash is easy when it's 2x 10,000 notes, but when it's a mix including coins, it's a pain.
Carry a coinpurse. I use an old faux-suede Samsung camera pouch.[1] Plus it's fun when someone is running an errand for you, like getting you a snack from the konbini across the street, and you plop your coinpurse on the desk with a thud, then pour out a handful of 500-yen coins and say "this should cover it", like a feudal lord.
[1] kinda like this: https://www.amazon.ie/DFVmobile-Samsung-Galaxy-Camera-Closur...
I believe there is a less limited suica card you can get (not a traveler), but I think you need a japanese address.
You don’t need a Japanese address. Simply visit any Suica vending machine, change the language to English, and purchase anonymous Suica.
There are various preloaded options you can purchase, but typically you cannot recharge e-money via cash.
I though there was a (blue?) one that japanese citizens could get, sent to their address.
The visa gift cards work pretty much everywhere, unless they are specifically disabled by the establishment. They do show as a gift card but all the POS systems are perfectly capable of splitting the payment now. I've only seen them disabled at small restaurants that have dealt with scam charge backs and sites like Raise that deal in gift cards and gift card scams as part of their business.
Usually they simply aren't worth it because of the activation fee. It's always more than the highest paying credit card cash back. However sometimes stores, run sales where they waive the activation fee, but there's always a limit.
First, cash makes me really think about what I'm buying. It doesn't poke you the same way when you tap a card... which is obviously one of the main reasons they want you do use cards. When I use cash, I am reminded of when I didn't have a lot, which keeps me from spending without thought.
Next, its a hallmark of the middle class to spend money that you don't have. Myself and some other people pay their cards off every month but that isn't the norm. Many people keep a balance... I do not want to be one of those people. When you use cash, its stupidly easy to know if you have the money or not.
Its also easier to do social activities when you have cash. Need to split a tab, here's the money. I'll buy the next round, heres the cash.
Also, it may just be me but keeping a decent stack of bills is like a little pat on the back for the hard work. Its a reminder that hard work pays off, which I can see when I buy a coffee, or some bread or something.
Reasons why I don't like cash: family members tend to treat my wallet like an ATM.
Lastly, if you want to make some people feel good (e.g. servers, bartenders, etc) tip them with $2 bills
Wozniak famously went further and would order sheets of them uncut (costs more), then pay a shop to perforate them for him so he could peel them off for people (making it look really fake).
He had a funny story about doing this at a casino for a slot machine and getting interrogated by the secret service iirc where he handed the guy a fake ID where he had an eye patch and it said he was a laser operator or something. He played dumb about the bills to look more suspicious instead of explaining the truth.
Hard to tell if it was just a tall tale, but given that it was Woz it was probably mostly real.
I've heard this statistic a lot, but I haven't seen any recent evidence it is true. I used to work for a bank, and our Credit Card holders would (mostly) pay off their balance every month.
We called them Transactors vs Revolvers. 85% of our CC were Transactors, and some of them would pay down multiple times a month
It’s crazy that Canada, being so similar to the US, got rid of the 1 and 2 like 30 years ago.
Splitting a tab is a simple matter of asking for separate checks and at the bar, separate tabs.
I'm not worried about dirty cash as compared to every purchase being tracked and all the fees for using services like Venmo or whatever exchange service du jour, and they all apply their petty moralizing. It's not the way forward if you value freedom and privacy.
For some silly reason, the machine stocks only these bills: $5$ $20$ $100$
Why waste an entire cash dispenser on fives when it could instead be handing out fifties (or at least tens)... especially at an ATM!?
I think it's time for a $1000 bill, again. Let's get rid of bills less than $10$ (coins instead); also, get rid of pennies [in progress] and nickels.
Leaving only: dimes*, quarters, halves, dollar [coin], $2 & $5 [coins], $10$ $20$ $50$ $100$ $1000$ [bills]
*I'd suggest nix'ing this one, too, if it were physically larger [but isn't]
I only stock my wallet with $100$ $50$ $10$ $2$ [bills], and immediately get rid of ones ($1$) when possible. I do not have any credit cards.
Credit card processors charge large fees on transactions, which is a huge tax on just about... everything.
You can make a lot of that tax back via rewards. And not every card user has a good rewards-paying card - it's usually the more rich that do - so rewards function as a wealth transfer from the less rich to the more rich.
Very few stores have lower prices for cash, and processors try to ban that via their contracts when they can. If you pay with cash you pay the higher price to cover the credit card fees anyway, so you're just subsidizing the rewards earners. Might as well recoup some of that yourself.
I’m generally a pretty responsible credit user. I pay the whole bill each month and never paid a dime in interest. But I’d be lying if I said I never justified a slightly larger purchase that I would have otherwise made by calculating the “discount” from the points. Doing this just one time on a modestly large purchase can effectively negate all the points you might earn in a given year.
I found even moving to a debit card helped in two ways. One, the point game goes away. But I think more importantly, when spending on a debit card you see the balance go down, so there is an instant and clear impact of the expense. With a credit card the number goes up, and you have to invert it and do the math in your head to feel the expense in the moment, which most people don’t do. And when people look at their bank balance at it hasn’t moved, they think they still have that money to spend. It’s subtle, you might not realize it, but those are the games they play. I’ve probably saved more money from simply spending less, than I would make in points.
I do keep one credit card around that I use for my recurring online payments. These are set it and forget it, so the psychology plays less of a role, as far as I can tell. And I review all the stuff on that recurring list on a regular basis to keep it lean. I have to spend $5k to make $100 in points. Who cares? It’s a lot easier to trim $200 or even $500 out of $5k in terms of spending, if I’m really looking to maximize my savings. Not to mention, the points aren’t cash in your pocket, they are an excuse to spend even more.
Let’s say I have points to get a free flight. Great, now I’m also spending money out of pocket on a hotel, meals, entertainment, etc. That “free” $600 plane ticket actually costs $5k in other expenses, but it’s ok, because we’re earning $100 more in points for spending that $5k.
It’s a trap. It’s subtle, it might feel like a win, but they’re coming at you from several different angles. It’s not just about the people paying interest on their balance. They make about as much on the interchange fees from high volume users as they do from those interest payments. Those points are also a trick to get you to swipe more to boost their interchange fee profits.
I just flew to London for free and our hotel was free (the Westminster) on points. Earlier in the year we stayed in a $900 a night hotel free on points in Quepos Costa Rica. We flew there on a Delta companion pass by having a $350 AF Delta credit card that also has a $200 Hotel credit (Delta Business Platinum).
I almost always fly to see my parents free on points (AirFrance 20K points to book Delta flights round trip). Of course I don’t pay for anything when I go home.
But if you are getting most of your points via spending instead of sign up bonuses, you’re doing it wrong (See r/churning). That is unless you do a lot of business travel.
Either way, we travel a lot anyway. Credit card points increase our travel budget.
In my observation being that much incentivized by the reward system seems to be a very US-American thing. In Germany, I have never heard anybody seriously talking about that they love the reward system of their credit card. I would claim that at most some (but I think rather few) people in Germany consider some very specific reward that their credit card has as a slight convenience - but nothing more.
The consumer essentially can’t be accused of not exercising due caution unless you have ignored at least one bill with fraudulent charges. This is real value, so once you’ve bought into the system, getting the rewards is a major incentive to choose one card over another.
Rewards are nice, but not the primary reason I use a credit card.
[1]: https://wero-wallet.eu/
Still wouldn’t recommend them for anyone who’s not particularly good with money, but 2% back for almost no effort is a pretty good trade-off. Keeping track of rotating quarterly bonuses? Yeah—-then it’s worth thinking about ROI of your time.
Anyone who gives a 3% discount for cash will get cash from me, but I already have all my money in index funds. The effort to maximize points is “use this credit card, get the cash back”.
It’s really not that much effort, for rich people with excellent credit. It is of course a hugely regressive system, but that wasn’t the argument you made.
I do tend to shop at low-margin places like WinCo Foods. There's also an auction house I buy big ticket items from. Both charge credit card fees. I've never seen a gas station anywhere in the US not charge extra for credit cards, and most also charge extra for debit cards. The DMV also charges a fee. I don't know if Grocery Outlet charges a fee, but I do shop there too.
Also, pretty much every recurring charge I have, e.g. from T-Mobile, Comcast, and my water supplier and mortgage processor all charge credit card fees, if I use a card instead of ACH transfers.
Not true!
For a while I was manufacturing cash and did some research on the hygiene component.
Surprisingly, I learned tap to pay was the most hygienic iff one didn’t use a common terminal for tips or signing.
Coins were the second most hygienic with a germ score of 168RLU . Cash third. Credit fourth, and dead last was shared payment terminals one physically touched (this includes tap to pay if one “answers a couple of questions.”) A separate study found smart watches were dirtier than terminals.
[1] https://www.electronicpaymentsinternational.com/news/what-is...
[2] https://www.self.inc/info/dirty-money/
[3] https://www.nmi.com/blog/how-contactless-payments-impact-glo...
And amusingly [4] https://nocash.ro/oxford-university-european-bank-notes-on-a...
Reports in this space are full of confirmation bias so take the RLU scores with a grain of salt. Likewise some cultures have cleaner methods of dealing with cash than others.
That’s not to discount its upsides but its downsides shouldn’t be handwaived away either.
I'm only near a few dozen people per day at most, and the chances of one of them trying to rob me are near zero, and the most they could get is a fraction of what they could access through a stolen card number. Meanwhile, there's constant attempts for data breaches at payment processors and those they work with, so my chances of being harmed by a data breach are much higher than by a robbery.
Also, you are paying insurance premiums for those voided transactions. Vendors are chanrged around 3% for card transactions, and they pass that on to the customer, although some only pass it to their card customers, with a surcharge for card transaction.
One of my cards is very thick and metal. I found that one had fraud on it at a much higher rate than any of the plastic cards I’ve had. It was heavy to the point that it would get comments from about 40% of the people I handed it to. I can only theorize, but my guess is that card signaled a higher value and was more likely to draw the attention of someone who may care to go on a spending spree.
While I can report the issues and get a refund and a new card, it was always a real hassle. Since I stopped carrying that card and use it exclusively online, I don’t think I’ve had a single incident in several years. I used to have it happen about once per quarter.
Quite the opposite: when using some electronic payment method, I better make careful notes of each transaction so that I can detect whether some fraud happened (which happens for basically every method of digital payment). On the other hand, for cash this is much less necessary.
While it breaks the law, I kind of feel sympathetic to it, given how much the law tends to advantage big companies.
A society depending entirely on corporations for currency function is incredibly fragile in addition to corporate payment services being rent seeking, privacy invading, transaction morality deciding monsters. At least in the USA.
Governments should definitely be regulating and requiring those offering paid goods and services to accept cash. And not just for paying debts.
It’d better if the government just mandated the eCash system in the back half of Applied Cryptography (which is similar to the Japanese system discussed elsewhere in this thread).
http://moosebay.com is a close family friend who lives in and guides out of Ely. I had a great trip there many years ago.
I’ll have to ask them about your story, surely they remember it happening.
The cause of the failure was multi-fold: all of Interac's Internet links relied on the Rogers' network in one way or another, so when one went down, so did the other.
We found a restaurant that had gas grills. They couldn't make french fries, because their fry machine was electric. They couldn't make shakes. They were pouring soda from bottles they had bought at a grocery store. They were working by candlelight and adding up the bill on a hand calculator, but they were doing business like crazy. I think they were not doing credit cards, but it was long enough ago that they might have been taking imprints. Certainly today they would not be able to take cards, unless they had battery backup or a generator, since many cards don't have the raised digits any more.
1. Put all of your purchases on the travel rewards card
2. Pay it off in full every month, no exceptions
While the paranoid nerd in me might occasionally wonder about all my spending being tracked, watching someone fumble with magic pieces of ~paper~ plastic and metal in a supermarket now looks as quaint to me as someone taking their pig to market to exchange for some eggs and bread.
And now we rarely have the "it wont connect lets try again it takes 2 minutes" dance of 10 years ago.
Not having to carry your wallet around and make trips to ATMs is rather convenient, but in aggregate, I'll still NOT recommend this. I realize I have ended up spending several times I would have had I stuck to cash. There seems to be a psychological aspect that makes you keep track subconsciously of how much you are spending when you have to physically draw cash. With mobile payments? It's just scan a code and forget about it. I am planning to stop by the end of this year.
Gets some of the advantages - not all.
Or if you shop regularly at a given store, reloadable gift cards are a decent substitute.
But cash isn’t terribly scary.
Stores aren't allowed to use credit cards to track purchases or to link customers to loyalty programs. That's why you need to use a separate loyalty card, or a store-branded credit card.
Walmart, for example, will by default add in-store purchases using a credit card (and no other identifying information) to the purchase history on a Walmart.com account set up with the same credit card.
You can only disable this tracking by going into Account > Settings > Privacy > Data Sharing in your Walmart.com account, where you'll find an option that states "Allow us to automatically add store purchases to your purchase history using credit card."
It's also generally cheaper due to cashback and other incentives.
Other than that I've always found the idea that cash is "inconvenient" a bit of a child-like argument. Okay, yeah, you have to count some coins, you also have to brush your teeth and use a knife and fork instead of your hands, come on.
If it's possible to do the equivalent of cash, but with some sort of smartcards that exchange some sort of offline zero-knowlege proofs, then that would be preferable over physical cash, because it could eliminate the need for change or marked bills and it would be even more private.
Nothing "child-like" in trying to make your life better, even in small ways.
I suppose my argument is along the following lines - books are too cumbersome so let's scroll Instagram instead.
It's a fake argument, it's not that big a deal, you just didn't care enough about reading books.
If you don’t care, you don’t care. I gave up a long time ago too. In that case it would be annoying enough if the privacy preserving card were just 1cm longer or something that you wouldn’t use it.