Cash vs Card

[LastManStanding]

Read this on Facebook a while ago. I'll paste it below
++++++++++++++++++++++++++++++++++

This is why I keep telling the younger generation to stop avoiding cash!!! ……
Why should we pay cash everywhere with banknotes instead of a card ?
- I have a £50 banknote in my pocket. Going to a restaurant and paying for dinner with it.
The restaurant owner then uses the note to pay for the laundry.
The laundry owner then uses the note to pay the barber.
The barber will then use the note to pay for shopping.
After an unlimited number of payments, it will still remain a £50 value, which has fulfilled its purpose to everyone who used it for payment and the bank has jumped dry from every cash payment transaction made.
BUT
IF I go to a restaurant and pay digitally via Card,
- the bank fees for my payment transaction charged to the seller are 3%, so around £1.50
( and so will be the fee of £1.50 for each further payment transaction )
-for the owner re laundry or
- payments of the owner of the laundry shop,
- or payments of the barber etc.....
Therefore, after 30 transactions, the initial £50 will exist at only £5, and the remaining £45 has become the property of the bank … thanks to all of the digital transactions and fees!
Use it or lose it folks…
Once it’s gone we won’t get it back!
Cash is king!

 

[SilverSage]

Read this on Facebook a while ago. I'll paste it below
++++++++++++++++++++++++++++++++++

This is why I keep telling the younger generation to stop avoiding cash!!! ……
Why should we pay cash everywhere with banknotes instead of a card ?
- I have a £50 banknote in my pocket. Going to a restaurant and paying for dinner with it.
The restaurant owner then uses the note to pay for the laundry.
The laundry owner then uses the note to pay the barber.
The barber will then use the note to pay for shopping.
After an unlimited number of payments, it will still remain a £50 value, which has fulfilled its purpose to everyone who used it for payment and the bank has jumped dry from every cash payment transaction made.
BUT
IF I go to a restaurant and pay digitally via Card,
- the bank fees for my payment transaction charged to the seller are 3%, so around £1.50
( and so will be the fee of £1.50 for each further payment transaction )
-for the owner re laundry or
- payments of the owner of the laundry shop,
- or payments of the barber etc.....
Therefore, after 30 transactions, the initial £50 will exist at only £5, and the remaining £45 has become the property of the bank … thanks to all of the digital transactions and fees!
Use it or lose it folks…
Once it’s gone we won’t get it back!
Cash is king!

But the bank employs thousand of people. They pay those employees and the shareholders, who in turn go to the barber, the laundry, and the grocery. So there is no value lost, it is just distributed differently.

And, if you manage your cards properly, you can actually make money by using them. The benefits come out of all those fees. I might as well reap some of those rewards.

(I have a degree in economics)

 

[LastManStanding]

But the bank employs thousand of people. They pay those employees and the shareholders, who in turn go to the barber, the laundry, and the grocery. So there is no value lost, it is just distributed differently.

And, if you manage your cards properly, you can actually make money by using them. The benefits come out of all those fees. I might as well reap some of those rewards.

(I have a degree in economics)

I KNEW there was something missing!
Long ago I had a credit card. At the end when it was time to renew it the bank refused to renew it on some reason I cannot remember now. The actual reason was that while getting all discounts they offered through vendors, I never actually left anything unpaid thus not giving them the chance of charging me any kind of interest. So I only got the benefits, not a single cent given as interest.