02/10/2023
Please understand what NOT using cash is doing. Why should we pay with cash instead of a card?
- Imagine I have a $50 bill in my pocket. I go to a restaurant and pay for dinner with it. The restaurant owner then uses the bill to pay for the laundry, the laundry owner then uses the bill to pay his barber and the barber uses the bill for shopping. After an unlimited number of payments, it will still remain $50, which has fulfilled its purpose to everyone who used it for payment and the bank is left dry from every cash payment transaction made...
- But if I go to a restaurant and pay digitally - with a card, the bank fees for my payment transaction charged to the seller are 3%, so around $1.50 and the same $1.50 fee charged for each further payment transaction afterwards (owner to laundry shop, barber etc.) Therefore, after 30 transactions, the initial $50 will remain only $5 and the remaining $45 became the property of the bank thanks to all the digital transactions and fees.
When this is put into perspective, imagine what each retailer is paying on a monthly basis in fees at 3% per transaction through their machines. If they have, for example, $50,000 in sales & 90% are by Card, they are paying $1500 in fees in ONE Month. $18,000 in a year.
Especially use cash when paying your hairdresser, massage therapist, small business owners, etc. They rarely charge a card processing fee, yet they pay high fees to the card companies.
