Why you should carry at least $20 in Cash – Plastic Costs More
Originally Published 2/2/2011. Above Photo Credit: BenMadeska.com
Living on a budget doesn’t mean you should walk around without a sliver of cash in your wallet. It’s just bad form. Forget the fact that you look dirt poor if the only residents taking shelter in your billfold are a few random receipts. Paying for something small with a debit card is actually kinda rude. Not openly rude, but just unaware rude.
It’s akin to not holding a department store door open for a Mom pushing a stroller, even if she happens to be 10 or 15 steps back and you have to wait a few seconds.
It’s commonplace to use plastic everywhere for everything. What many of us don’t fully realize is that swiping a credit or debit card costs that business money. Sometimes, a lot of money. All in the form of swipe fees that the business with the credit card machine foots the bill for. You’ve probably seen the “no credit/debit purchases under $5.00” signs. There’s a reason for that. All those swipe fees add up, especially if it’s on small purchases. That makes a big difference if you’re a cafe slinging dollar cups of coffee and $2.50 lattes.*
Is it really that big of a deal? It must be at some level. Especially if the feds want to set a swipe fee cap of $0.12. (Sidenote observation: If Barney Frank and Republicans agree on anything? That’s a sign that the issue is at least… something)
So carry cash and use it. At the very least you’ll make the wait shorter for the people in line behind you.
*Full disclosure: This was written after I ordered a cup of coffee, realized I had zero cash on me, and had to hand over my debit card to the predictably attractive barista, all while feeling like a total tool. Don’t let this happen to you.
UPDATE: I had no idea this was such a divisive topic. I just felt like a dope for having to sign for a $2.25 cup of coffee. Next time I’m gonna go total rogue and pay with a personal check… (kidding)
I completely disagree with this. Using cash to and thinking that is part of an image you want to convey feels extraordinarily petty to me.
I absolutely disagree with the reasoning behind this. Usually, it’s the people paying cash who hold up the line, whilst us “swipers” can usually breeze through a transaction.
Also, those merchants who have minimum purchase restrictions are actually breaking their merchant agreements with the credit card companies. Visa and MC explicitly state businesses are not allowed to do that. I get *why* they do that, but it is a violation. I’m much more likely to patronize a business that accepts cash only, to get around the transaction cost, than some place that has a minimum purchase rule.
That being said, a gentleman should always carry cash on him, not to make his wallet look full, or to pay for coffee, but for tips, parking garages and things of the like.
Blaine I agree with you on this. The only time I use cash is for things that it is necessary for. Otherwise, I use a card.
Finding me without cash in my money clip is a rare thing. Very rare. I’ve NEVER had problems holding up a line or problems handing the cashier my cash to pay for something. I cant say the same for using plastic. Whether it be from the magnetic strip not reading or the reader not working… and then waiting for your receipt to print and to sign. With cash, its simple. If im going on a date, I bring more cash. The only thing I use my debit card for is paying for gas and bills online.
I have found using a debit card far quicker than paying with cash. In most places I can swipe my card while the cashier is doing their thing. When it comes time to authorize, it’s ready and takes a couple seconds. Rather than having them count out change. Have you never had to wait for someone finding change at the bottom of their pocket? I carry two things with me. My license and debit card. Nothing more.
We’re paying for those swipe fees. Businesses are going to factor in the cost of swipe fees or any other costs when they price products.
I guess I could see paying in cash as a courtesy to a small local owned business, but do I really care about the swipe fees that Starbucks or any other mega-conglomerate has to pay?
Can we really appreciate a business that accepts cash only in 2011? I have not patronized a coffee shop because I had no cash, as well as no desire to be charged the price of my coffee at a nearby ATM. Pay with whatever you want, gentleman or no.
I run a Family Business. Majority of Payments are done with a credit card. Our monthly Credit Card dues are around 1,500 dollars. That money comes out of my pocket, all because of convenience to our customers. Imagine that over the course of a year 18,000 disappearing from my profit yearly. I pay with cash if the amount is reasonable. But just an eye opener it does cost around 3% for American Express and sometimes Discover to swipe.
they can pay the swipe fee, because i’m not paying the atm fee
Wow. Didn’t realize I touched a nerve. I think it’s petty if you’re keeping a $100 in your wallet. A $20 just seems like you’re prepared?
Now that you mention it Blaine, the sign at the coffee shop I was at “requested” no plastic purchases under $5.00. But, I honestly did feel like I was holding up the line as I paid with a card. Handing over a couple bucks would have been much easier. For me.
If your bank is still charging you ATM fees, I think it’s time to look for a new bank.
I think this is a good idea for a few reasons. Like others have said, it is unfortunate that small business owners have to pay out the nose for customer convenience. But I have also been guilty of using my card to pay for a $0.69 head of lettuce. I felt like an idiot.
One very good reason occurred last night. My family and I went Panda Express and the credit machine at the counter was down and we had no cash. The employee had to go back to the drive thru counter to run my card. We were definitely holding up the line. Wouldn’t have been a problem if I had a 20 on me.
For those that apparently are all for using plastic because it is easier for you let me re-image Dappered’s post for you. Carry at least some cash in your wallet, you never know when you might need to pay parking; want to tip a server a little extra without their boss finding out; go to a bar and get a beer drink it, slap down the cash for it and leave; late night food craving from a street cart. There are plenty of reasons to carry cash. The only way I differ with Joe is that I usually carry $25, two fives, one ten, and five ones.
And if you are worried about ATM fees, I do recommend switching banks. I have never paid an ATM fee except one time I was at a music festival and ran out of cash and had to use the festivals ATM.
I miss tens. I wish you could pick something other than 20s at the ATM. Or at least… my bank’s atms.
Some good points brought up so far, but still no groundbreaking points that would even make me think of using plastic over cotton. Another good thing about paying with cash? It allows you to hold YOUR money in your very own two hands. You can feel it. See it. Smell it. For me (and the majority, perhaps?), my paychecks are directly deposited in to my bank account. Though it is convenient, I dont like the fact that I never really SEE most of my money… only numbers of how much money I have.
I make it a habit to pay for everything small with cash for EXACTLY the reasons Joe mentions above. Does it take a little more effort on my part? Probably, but I know my daily cup of coffee costs $1.89 so I always have $2 ready for them. Though, it also helps that I have jerk friends that pay large debts in singles.
A second reason for carrying cash is because (at least in the city of brotherly love) there are a number of AWESOME hole in the wall establishments that are cash only. Maybe they’re trying to keep things under the table, maybe they don’t want to pay CC companies. Either way, there’s no chance I’m missing out on a dynamite sandwich just because I don’t want to carry Andrew with me.
If I’m at a small business like a local diner or an independent coffee shop, I’ll try to use cash. Failing that, I’ll use my Visa check card, but I absolutely won’t use my American Express, because their fees are the highest. If it’s a chain or something like that, I don’t have any problem using my AmEx because the benefits are so good. It’s just a matter of being conscientious. It’s also always good to have a few singles on you in case of tips and other small incidentals, as someone pointed out.
I wholeheartedly agree. I use my card for eveything but also carry around $30 in assorted bills. Using my card is faster since I don’t have to sift through cash and the fact that I dislike carry coins in my pocket. It also makes tracking my expenses far easier with sites like Mint.com. While I understand the business side of, you have to pay to play. If fees are hurting your business that much than switch to a cash only model.
Never run out of cash.
If you wanna take this to an extreme, I think it’s a smart idea to pay as much as you can in cash. It’s inconvenient, and can be a pain in the nads for the cashier(having been one in the past, I can testify to that), but I try and actually use cash to budget my items(Groceries, Gas, etc.). I got the idea from Zen Habits, and I think it’s a much better idea to visualize what you have as opposed to using your debit card aimlessly. Some of us can balance our money w/ ease, others can’t — I’m definitely in the latter category, so using the cash method is a great way of keeping myself frugally in check.
That being said, I don’t think handing over a debit card because of lack of cash should make you feel like a tool. Stuff happens. Writing a check, on the other hand…
I recently had a conversation about this with my future wife. I owed her some money for utilities and the like so I gave her a couple hundred in cash. She said, “Cash? Really? Who uses cash anymore? Drug dealers and hookers, that’s who. Which one are you?” to which I replied, “Well, sweetheart, there is something you don’t know about me…” But that is another story entirely. My point is this: Cash is not just for drug dealers and hookers anymore. I hate that our society is moving toward total plastic and internet. I use plastic and internet all the time, but I still carry cash with me everywhere I go. The magnetic strip on my debit card wears out all the time and it pisses me off. Cash ALWAYS works. And cash is cool. Here’s a suggestion. If you want to add a little flair to your cash, order some $2 bills from your bank. I get a couple hundred at a time. They come new and uncirculated and in sequential order with the serial numbers. I use them for birthday gifts (kids LOVE them), tips, beers at the bar, coffee, not to mention how much strippers like them, if you are into that sort of thing… They are great conversation starters and it is fun to watch the cashier or bartender figure out where to put them in the cash register. They don’t keep a drawer for $2’s. I guess what I am trying to say is: Cash is cool. It always has been and I hope it always will be. I’m with Joe. Hey Joe, I’d like to see a graph of yeas and nays when this all settles out.
The two dollar bill idea is awesome. A graph? This just in from the art department: http://dappered.com/wp-content…
I agree totally with using cash at mom ‘n pop shops to help them avoid the high card fees, however, the cash-only establishments that conveniently have ATMs (NYC) with $3.00+ surcharge fees are at the bottom of my list, regardless of their cool-factor. I’m fortunate to have a bank that refunds my non-branch withdraw fees.
I agree with carrying cash for situations that will require it, such as tips or cash-only purchases. But, I disagree on never using a card for small purchases. I use my card for anything I can. It’s usually faster, especially as technology progresses, and it’s actually a lot less hassle for the cashier as they don’t have to worry about running out of change. I would also add that if you are using a check for anything other than a bill, you’re on the bottom of the totem poll as far as causing hassle for everyone involved and looking silly to boot.
I have tried to carry a little cash on me recently, only because one of the frequented places to eat lunch near my new job only accepts cash. Aside from that I use card for 98% of transactions. Just giving that background.
My actual response is that I agree with Blaine. In terms of holding up the line? I definitely feel like I hold up the line more when I use cash. In many stores and restaurants these days you don’t need to sign for transactions under a certain dollar amount. You can normally just swipe and go. Choosing debit requires no signature either and takes only a second to enter your PIN.
It is just a hassle to carry cash. I get paid through direct deposit and can use that money on my card almost anywhere on the day I get paid. I haven’t walked into an actual bank in months, and using an ATM machine is only minimally more frequent.
However, the biggest reason why I don’t often carry cash is because it’s clunky. With a card you get your card back and maybe a receipt (usually after you have put your card away). With cash, cashiers insist on stacking the cash and receipt together so you have to either put the receipt into your wallet with the cash or filter it out. Then you need to deal with the change, which is most likely thrown on top of the cash/receipt stack into your one hand. All the while you are holding up the line, or standing awkwardly to the side trying to get your wallet situated with one hand while the other holds your purchase. So much more streamlined to use a credit/debit card :).
Factor that into your prices
No idea how old you are, but I wonder if this is an age thing. As a 25 year old I’ve never really cared about seeing the actual paper. On the other hand, I like the convenience of having to never step foot in a bank to cash my check and deposit the money. It’s all handled behind the scenes and I can just spend as I need. We live in a digital age, and I’m sure it will only get more so as the years pass.
I just want to add that I disagree with this post as well.
If I am hitting the local Starbucks I use my member card for all purchases and I get a free drink for about every 5 that I purchase (set the reload to $15 and they will mail out a free drink card after every reload).
Cash is filthy and covered in tonnes of germs and bacteria, using a credit card minimizes your contact with other people’s filth.
If your credit card company isn’t picking up the tab on merchant transaction charges, get a better credit card. I am always amazed at how little research people spend on the cards they have in their wallets. Mine gets used for everything and payed off automatically every month. I sat down and ran the numbers and I make money off my cards with the rewards and discounts I get.
As far as keeping cash, I keep a bunch of ones and fives for tips, twenties are too large and you are always having to break them. Furthermore, don’t use the ATM, go into the bank and withdraw your cash in denominations of ones, fives or tens. If you are one of those sorry sops whose bank charges you to use the teller… change banks. As with the morons with crappy cards, I don’t understand people who bank with places like BoFA. There are plenty of Credit Unions and banks like Comerica that don’t crap on their customers.
Yes, there are costs associated in providing a convenience to customers. Do you want people to bring an extra jacket with them when it’s chilly so that you can save on heating costs?
The convenience brings customers in. I very rarely have cash on me as I pay for everything with some form of plastic. If I go into a store and see a “cash only” sign, that’s a customer that the store just lost.
You tip the full $20? o_O
That seems like an outdated way of thinking. The same kind of thinking has been applied in the past to, say, electricity (but how does the light work if there is no candle burning??) or steam engines (the vehicles moves by itself? sorcery!)
Andrew?
Matt… just because someone hasn’t conquered the Credit Card companies like you have, doesn’t make them a moron. Now if you’ll excuse me, I’m going to go lick a $20 bill.
Jackson.
andrew jackson, the guy on the 20!
I have to admit I am bad about paying for my coffee with my ATM card. The sad part is that every week I put $100 cash in my wallet for things like my barber who only takes cash, valets, shoe shines, and so forth. So even if it isn’t for coffee I find myself needing cash.
Im 29. Outdated way of thinking? Nah, I wouldnt say so. Old fashioned? Maybe.
Dont get me wrong, I love technology and how it some times makes life easier. Hence my reference to direct deposit and paying for gas at the pump. I love how it can keep us safe in our non-steam powered cars…. Though, as much fun as my Audi is to drive, its MUCH more fun when I turn off traction control (technology). Anyways, you can compare the whole money-in-hand thing to how some people are now reading books and magazines…. on a computer tablet. Personally, I prefer a physical book and magazine when im reading. Something about buying an electronic version of a book just isnt right to me. I like to feel the pages as I flip through them.
Interesting conversation, typically good Dappered stuff. Three thoughts-
-one is that one of my accounts gives me an added percentage boost in interest if I use the atm/debit card a certain number of times per month, and that’s exactly the (s-bucks) kind of transaction that I use that card for.
-transaction speed is almost always faster with card than with cash; even without that “blink and the money is gone” feature that (I think…) visa has.
-what about another topic?–the emergency $20/$50/$100 in the wallet idea. That cash could play VIP sometimes (although, ‘sometimes’ means “at night” generally…cab home/buy that woman a drink/etc)
Excellent choice on coffee for the photo! Looks like the Randolph Street store.
Denis, no I carry $10, $5 (x2), $1 (x5). But I do tip in the 20-25% range if the service is good.
Research has shown that people that pay in cash are actually less likely to spend money on frivolous things because they physically see it disappear as opposed to some number in a bank account that we may forget from time to time.
Matt, I would argue that credit cards are no more sanitary than bills. Remember, most men keep their wallet right next to their butt and most times you use it a clerk touches it, runs it through a machine that everyone else’s card has been run through.
With your first point, I take care of that stuff easily because I am single and therefore buy groceries 2-3 days at a time meaning I use my card at the grocery store more often because I try to buy fresh and not processed. This allows me to have cash for other places, especially small purchases.
Terrible argument by some of the commenters. If credit cards weren’t a net win for businesses, they wouldn’t offer it as a service. You’re getting my businesses by offering card payment that you otherwise wouldn’t be getting. The fact that the margins aren’t as high as a purchase I wouldn’t have otherwise made is a moot point.
my grandfather once said that you should always have at least enough cash to buy yourself and someone else coffee. Not “two coffees”, mind you, but the gentlemanly route of “yourself and someone else”. Because soon enough, $20 won’t be able to get enough of what you want, but the value of two coffees will always be enough for you to have what you need to get by.
What surprises me the most in all of this is:
A) it is a suggestion
B) the suggestion is to carry $20 not to make all your purchases in cash
Some folks need to take a deep breath.
I was in a situation last spring where my car’s fuel pump went out on my way home from work, leaving me to get my car towed to the nearest dealership about 10 miles away. Even though I have AAA, they only cover the first 5 miles of the tow and then I was expected to cover the rest – totaling about $18, to be paid in cash (none of the tow truck drivers I’ve encountered carry a card swiper in their truck). I sure felt like an idiot when I reached for my wallet to discover I only had $15 in cash. Since then I’ve always carried at least $20 in cash. One suggestion I also received was to keep some cash hidden away in the car for emergency situations such as that, but I think as a general rule of preparedness it’s smart to carry at least some cash on your person than depend solely on your card – you never know what weird situation might come up.
Good eyes! Yep, that’s the Randolph one. One of my favorite stops in the city.
Good eyes! Yep, that’s the Randolph one. One of my favorite stops in the city.
For safety reasons always carry at least a $20.00 dollar bill. It could happen even in the best of neighborhoods where you can get mugged and piss off the assailant for not having at least a $20.00 that he either stabs you or shoots you for him wasting his time.
I’m 20 and I almost always pay with cash. I know that I’m in the minority, but for me it works well. I actually see/feel the money changing hands and am more aware of what exactly I am buying and whether I need it or not. Also, maybe it’s just a personal phobia or something, but I always feel like my card might not work for some reason but cash always works. Finally, the reason I use cash is because it’s easy to get and use. My bank doesn’t charge from almost all ATMs and I get cash from selling blood plasma so I’ve always got some around.
Does anyone here party at all? Cash at a bar is always a win..no drink minimums and you can get out of there after 1 drink if you want with ease. Also the door can sometimes charge a cover and you need cash to get in or have to get in line with everyone else at an ATM. Yes, the coffee thing is also nice, but not really a big deal. I never felt like a tool paying with a card.
As for the final say, you can’t “make it rain” with a debit card. Ok, that’s lame, but seriously, always carry a 20 just in case. It’s good advice.
Having been a cashier in the past at a store (for a big-ish company), I would say that being paid in cash is a major pain – if they’re paying by card you can let them do that themselves (most shops in UK have the card-reader in front of the customer, they don’t need to hand it to the cashier) whilst you bag their items up – much easier than being given the cash, opening the til, counting out the change, and Then bagging up their items!
As for transaction costs, it seems that there is no charge for Debit cards? i.e. when you book things online there’s often a £2.50 (or whatever) charge for using credit, but nothing for debit cards. Is this true also for shops? (conversely, some nasty companies like easyJet offer the no-charge facility [which might actually be a law, now I think of it] for only one card, the pre-paid Mastercard. It was revealed about ten people in the country have this card…)
But as Lando says, cash at a crowded bar is always easier than card – there you really do hold up the crowd with a card! For now. In future I imagine there will be contact-less readers all around bars, so the barman doesn’t have to trundle off to get the chip-reader..
“In future I imagine there will be contact-less readers all around bars, so the barman doesn’t have to trundle off to get the chip-reader..”
I refuse to carry a contact-less card, and you should, too. Do you have any idea how insecure these are? So insecure that the credit card companies shut down the Mythbusters episode about it. That should tell you something. RFID is extremely simple to crack.
Youre questioning whether other people party because they don’t have LESS than 3 drinks? Thats counterintuitive where I’m from.
That mightve made sense before you could check credit card balances online but is it really hard now? If I went by on cash all week I wouldnt be able to tell you where half of it went – excess small bills and change get lost/put in random places, tip jars etc. and are unaccounted for. Credit cards give you detailed records that update instantaneously.
Personal preference I guess.
As a woman, the novelty of a man carrying cash is attractive; you just don’t see it very often these days. To me it speaks of preparedness and good judgment.
The money does not come out of your pocket. You wouldn’t have the money in the first place because many of your customers would go elsewhere if you did not accept credit cards. I know because I would be one of them.
The money does not come out of your pocket. You wouldn’t have the money in the first place because many of your customers would go elsewhere if you did not accept credit cards. I know because I would be one of them.
FAIL.
Two words:
Farmers’ market!
I’m sorry, but this isn’t something businesses do out of the goodness of their hearts for the convenience of the customer. It’s something they do because if they didn’t, they’d find themselves with no customers. Credit/debit transaction fees are the cost of doing business, and if they’re not factored into your pricing, then thats just bad accounting.
It’s not your fault the credit machine was down though, it also wouldn’t have been a problem if panda express had a back up machine.
I agree, i hate it when people use debit or even worse credit cards to pay for things that are really cheap. I always like to have a little cash in my wallet just in case!
What’s really irritating is in my business (luxury audio/video) when our clients insist on making their $80k purchases on their AmEx to get the air miles. That’s a huge chuck of our profit. We could hire another technician on the amount we would save every month. But what are we going to do about it? The client would go to a competitor because the air miles are valuable to them.
I’ve never met a whore who took credit.
…
It’s a brave new world, old timer.
Then how come the world’s oldest profession hasn’t caught up?
I use to always carry a twenty along with numerous plastic cards. Now all I carry with me is my ID, debit card, and cash, all nicely placed in a Silver Eagle money clip. (I hate the bulge in the pants a wallet creates.
Phew, people get a little steamed under the collar about suggestions to not use their credit card for every tiny little purchase.
Here are some practical reasons to always carry a bit of cash in your wallet ($20 is great, or a few $20, but a $100 bill just makes you look pretentious and like a jackass if you make someone break it for a $2.91 purchase). These are based on things I have seen recently:
-Sometimes, through no fault of the business establishment or yourself, your card gets declined – this could be a problem with your bank or your credit card company. In which case you look idiotic if you can’t pay for a simple cup of coffee. Plus, the louder you protest the more you look guilty of overdrafting your account.
-Sometimes it actually does take a minute for your card to clear. This is just as long as it takes for someone to get you a bit of change if they are halfway competent.
-Sometimes your card is demagnetized and, to be perfectly honest, you may have been too lazy for the last couple of months to give your bank a call and ask them to send you a new one. Manually entering your card information, and other necessary steps depending on the business, also takes longer then getting change back.
-Finally, being completely disconnected from cash means you rarely, if ever, tip when the only option is a tip jar – either because you forget about that aspect of customer service, you think the other person has a menial job and doesn’t deserve it, or because you are just cheap. Whether any of us like it or not, our current system of paying minimum wage to employees whom we expect to provide us with exemplary customer service is a bit ridiculous means that tips become a necessary part of compensation.
All of this said, I do value the convenience of plastic and am not advocating never using it, even for small purchases. I have perpetrated many of these and have seen many perpetrated on me when I worked in a customer service environment when I was in college and graduate school.
Wow, I can’t believe I’ve never thought of that. I am going to go to my bank and pick up some 2’s as soon as I get the chance because you’re right, they are cool. Does it cost anything to have them shipped to you?
I might be living under a rock here but I think I missed hearing about that. CC Companies stopping Mythbusters from doing an episode about it? Somehow I think that 1. They would blank out a key step and 2. Anyone motivated enough to go and build a wireless reader to steal the information would depend on more than Mythbusters for their blueprints.
Absolutely amazed when I saw this article was written last month. Get with the program man, it is 2011.
I agree with this post. If I’m paying for a simple cup of coffee at the coffee shop or a pack of gum at the corner store I feel like a total douche having to swipe a card for it. Now, I guess if I was paying an exorbitant amount for some girly drink like a latte-frappe-mocha-chino thing, then paying with the card might feel better because of the miles. haha
Bottom line: cash is more classy.
Having worked in retail for 8 years, I always hated those who used credit, even for large purchases. I hated check writers more, because they always took forever. I was really fast with cash purchases, and those using credit/debit or check writers made me look bad with my in/out times.
The reason I hated the debit/credit people was because you had to show them how to use the machines every time, then have them sign their paper, get it back, put it in the drawer, then do the next. I prefer the efficiency of cash.
Cash at all times is a big yes. Things I wished I had cash for at the time: buying anything from a hot dog street vendor, buying tokens for the subway, buying a cupcake to help a local non-profit, etc
Of course you need cash on you!! What an odd thing to debate.
Geez, there are some entitled people on here. If it’s not convenient for me, screw you, small business owners!
You need cash! Sometimes there are cash only places, sometimes it just makes more sense. I actually go by the rule of no swiping for stuff under $20 ( of course it is flexible).
I’d be an idiot if I didn’t primarily use my credit/debit card for the majority of my purchases.
I pay my balance at the end of each month, not at the point of purchase, so I earn interest for the period of time between the purchase and the payment of the bill.
Merchants build the cost of doing business, be it the cost to clean the bathroom or the cost to accept credit cards in to their prices. If they do that incorrectly, they go out of business. If they choose to accept only cash, they best charge less than the place next door.
Swiping is just as fast or faster than cash.
I carry a small amount of cash ($50-$100) in a variety of bills so I can tip a valet and the occasional ‘rustic’ purchase from a hot dog cart or roadside stand. $100 out of an ATM will last me a month or more.
Yes, always carry $20 (maybe even $50) in cash, but save it for emergencies. Don’t blow it on a coffee—it’s there for when something’s gone wrong and only cash will solve it.
Sorry have to disagree with this one, while I always carry cash on me, I use my credit card at every chance I get. If the store offers an opportunity to rack up reward points, sky miles etc., why not? If they want to charge an arbitrary “minimum” I see no problem with it, but not using a credit card with reward points is throwing away money. Even a moderate spender can get up to 400-500 dollars back a year.
I’ve heard this on many financial articles, but I must in the minority. When I have cash I spend it like it’s nothing. There’s just a wad of it in your wallet and you keep going till it’s gone. With a credit card I can track where and exactly how much money i’ve spent during the month, and adjust my spending accordingly.
I almost always carry cash to back up minor purchases (<50$) on my credit card. I learned this the hard way one time. I took this girl to out to lunch one day between classes, nothing super fancy total bill was like 23 dollars. When I got to the register I opened my wallet to find that I had left my debit card in my uniform pocket the night before after purchasing dinner, and had no cash. Red faced I looked at her and explained it, she pulled out her debit card and swiped it, DECLINED. We then stepped aside to allow the other customers in line to pay (with the first one right behind us being my former penny pinching boss who made casual conversation until he could see what was going on, then became very quiet and paid his bill and left without a word.) At this point she had to start walking to class in order to avoid being late so she left and luckily I was somewhat regular at the place and was able to convince the manager that I would drive to the bank get cash and be right back, however he asked that I leave my cell phone there to ensure that I would hold to my word. A quick trip to the bank and the walk of shame to retrieve my cell phone and this incident was one of the top most embarrassing moments in my life and I made it habit after that to always carry cash to back up minor purchases.
Between that for some reason the local Wal-Mart has trouble with my local credit union debit card and will on rare occasions decline it for no valid reason, sometimes it works when swiped a second time and sometimes not I always make sure to carry cash.
Holy Christ. I never realized there were so many whiny, pretentious people who think their time is THAT important. While i can greatly appreciate getting in and out of a place quickly, exactly how much longer do you think it takes to break a $20 for $5 coffee?? Are you paying in nickels? And if you’re in THAT much of a rush, make coffee at home and avoid stopping for your precious overpriced latte so you can get to work earlier to surf the internet.
Having some cash on you is a thing every man should do. Tips, small priced items, emergencies etc can be solved with a few bucks.
I got news for you: those fees are already factored into the price. Starbucks doesnt pay for it. We do. This is true for a majority of businesses. So don’t feel so bad. That said I agree with you on carrying cash but for different reasons.
Andrew Jackson! President! General! Super Bowl wining quarterback for the New Orleans Saints! (I’ve seem their statue of him down there.)
I’m 21 and I hate using plastic for this reason, plus cash seems more personable. I have to plan ahead for purchases by withdrawing cash so I spend less.
Cash is inconvenient, old fashioned (not in a good way), irreplaceable and generally a waste. While a lost or stolen debit card can be canceled and any lost funds recuperated, cash is simply lost, nothing stylish about that. Additionally, I don’t care if it costs a business extra for accepting credit/debit cards – it’s the free market, you’ve got to offer your consumers what they want or shut your doors, that includes debit/credit purchases.
A local bar here in Charlotte called the Moosehead (transplant from Portland, Maine) serves a great lunch with drink for $8, and to offset credit/debit charges they charge the customer an extra $0.50 per meal if you use credit/debit to pay. A price well worth it to both proprietor and customer.
I’m the most stylish guy in almost every circle I find myself and at no point will you ever catch me carrying cash. Hell, debit/credit cards are getting dated, the Visa/Master Card’s of the world or working on newer quicker delivery devices. Again, get with it. Cash is for your dad’s golfing buddies’ big gnarly and obnoxious money clip; it’s 2011, join the rest of us and get to swiping.
I have done this for years and I can attest that it is a very good idea. Tip your bartender with $2 bills for the first round and s/he won’t forget who you are or what you’re drinking for the whole night, guaranteed. I get awesome service in crowded places with this.
Finally, some input into this conversation that can help us understand what all the fuss is about.
The point of this site is image, the point if image is to demonstrate onself the choicest genetic specimen, to have best access to the other choicest genetic specimens (sorry if that description took all the fun out of it). Preparedness and means are what having cash-on-hand is about, and that’s two things that a woman can understand without further explanation.
They factor it in my serving you shit coffee. (:
Always carry some cash, broken into $1s, $5s, $10s, and a $20. There are too many times when you need to tip someone, help out a homeless man, or even avoid those awkward who-is-buying situations. Cash will solve all of these problems discretely and conveniently.
My ATMs (credit union) dispense 5s and 20s.
Just remembered that I replied to a comment on a Dappered CLASSICS article. Reddit just got blocked here; forgive me.
I guess what it comes down to for me is that I do not care if I hold up the line. I enjoy my alligator skin money clip and people can wait behind me and be damn grateful for the opportunity.
For all those people who poke fun of people writing checks because they look “silly” or those who pay by cash as “outdated”, c’mon. I have not seen one person write a check at a coffee shop. Not one, so don’t ever use such an inept example to feel superior; and I think anyone who has any decency wouldn’t turn down their noses on those who do use the two “Cs”. They aren’t stealing products. My parents either use cash or checks, and only uses plastic for large purchases. They were never in debt and never faced overdrafts. I don’t care if plastic is faster – if the man or woman in front of me wants to pay by cash or check at the grocery store then so be it, I’m in no rush. I’m not THAT important to be “in and out.” I’m not participating in an Amazing Race. It would interesting to conduct a survey to gauge people’s arithmetic skills today, especially my generation (I’m 19).
What’s so “outdated” with wanting to feel ones own money between his/her hands? Now that’s a silly statement right there. This kinda reminds me when my grade school teacher said that a grocery store shut down for a day because their cash machines didn’t work – the cashiers couldn’t do the math quick enough or accurately during transactions. Get out a piece a paper and pen and write. Wait, penmanship? What’s that? We have computers. Carry the one over the five . . . . huh? Face to face conversations? We have social media. I’m not Luddite, au contraire, I’m just critical when it comes to immediate gratification.
It’s like not knowing what streets one passes to get point A to B. Tunnel vision isn’t admired when you look miserable. What happens when people ask you for directions? My roommate asked me how to write a check. Now who looked silly? Not me.
One thing no one mentioned is that cash is filthy. I used to work as a teller & I would have to wash my hands every chance I had otherwise they would be coated in grime. However, banks have just given us another reason to distance ourselves from the usefulness of technology:
Banks to Make Customers Pay Fee for Using Debit Cards
http://www.nytimes.com/2011/09/30/business/banks-to-make-customers-pay-debit-card-fee.html?_r=1&nl=todaysheadlines&emc=tha2
I second the filthy nature of cash; having also worked as a teller, you see everything from crisp, clean, and consecutive series of $100 bills to hundreds of dollars in 2 bills covered in who knows what from who knows where.
Anyway, Joe, any thoughts on the move by the fed, and the reactions of the banks? Do you still feel any guilt for swiping for those petty things? And, do you think running a Visa/MC as a credit transaction count as a “use of debit card”?
You cannot charge more for a debit/credit card purchase, but you can charge less for a cash purchase. Tends to be confusing/irritating for customers. Its one of many ways these companies screw over merchants.
You could figure out how much that’s going to cost you and offer to split the fee with them if they’ll pay with a check or cash. (i.e. 3% of $80,000 is $2,400. So offer them $1,200 off — works out for both of you.)
A lot of people are saying “cash is classy.” Am I the only one who TOTALLY disagrees with this. If you’re talking about $2 bills for tips, I get you — that’s cool. And I agree 100% with carrying a few bills to be prepared. But paying for a meal or coffee with cash? NOT classy in my book. I feel like the only people I ever see doing that are the kind of people who aren’t together enough to have bank accounts, so they cash their paychecks at the grocery store.
Wow, disappointed you are advocating this as I could not disagree more with this post. I absolutely loathe paying with cash and for good reasons:
– Arghh change – What do you do with the change? I hate change, I hate coins. It’s 2013, why do I need to worry about pennies in my pocket? I am a guy, I don’t have a purse where I can throw a change wallet or baggie. Why is change even in circulation anymore?
– Recepits – if I paid with a card, I can just toss the receipt and then use my CC statement to track that purchase in my personal budget. With change? I often forget all the smaller purchases so I’d have to keep the receipt, then file it at home. Plus, if you use an app like Mint then it creates more manual entry work.
– It’s slower – I absolutely disagree that cash is faster to pay with. The cashier has to pick out all the notes and coins and bundle them up for you with the receipt and give it back in one hand, then you have to awkwardly stand to the side and separate all three while grabbing everything you’ve bought and inconveniencing the person behind you.
I cannot wait until we get to a point where change and cash just don’t exist anymore. Hopefully it’s within my lifetime. (btw I posted this as a reply on your FB post but realized the discussion is mostly here. Sorry for the copypasta.)
Next time you see a “No credit card transactions under $5” sign you should ask them if their processor knows they’re advertising that. Its generally against the agreement. There’s a clear ROI with transaction fees vs labor/time paid for daily trips to the bank, the potential for or should i say enviable employee cash theft, and the increase in customer base with card processing… just to name a few.
And as someone who gets calls from processors on a weekly basis, there’s so many out there with a variety of business models on fees. If you can’t make it work for you then you aren’t trying.
A gentleman always carries cash.
A gentleman is prepared for most eventualities – In the old days it was a knife and handkerchief. Now you should carry cash, a AAA membership/roadside assistance/towing coverage (even if you’re not driving), a phone and a charge card to pay for bigger emergencies. And maybe still the pocketknife and handkerchief.