Nearly cashless.....

[poltr1]

No, this isn't as dire as it sounds.

I've become so accustomed to using my debit card nearly everywhere I go that it's rare for me to use cash for anything.


The Visa slogan is mostly true -- it's everywhere I want to be. Well, almost.

It's so damned convenient for me to whip out the plastic and not worry about having enough money. That is, unless the purchase is declined, at which point I resort to Plan B: another card, usually a credit card.

Even places that used to not accept Mastercard and Visa are doing so now -- fast-food restaurants such as McDonald's, and coffee & donut shops like Tim Horton's. (Psst....Camp Day is June 8.)

And for purchases up to a certain small amount (ranging from $15-$25) at some places, I don't have to sign the charge slip. That make it so much faster to go through the drive-thrus and take-out bays.

And it's easier for people like me to keep track of my expenses, instead of having to rely on the old-fashioned way of pen-and-paper. I can download my debit card activity as a QIF file, import it into Quicken, and viola! A summary of where my money has gone.

And if I travel abroad, I get the exchange rate at the time of the transaction, not the rate of the day or the week.

Yes, there are still a few hold-outs. A few places (like the local DQ) have on-site ATMs that I can use, and get my cash from the machine or from the cashier. And there will always be a few places where it's cost-prohibitive to accept plastic, like seasonal ice cream shops. Or impractical, like vending machines (although some library's copiers use a variant of a debit card, and Kinko's uses a smart card). Or where customers don't want to be traced back to, like the Lion's Den, adult bookstores, or the local head shop. ;-)

What can they do to make the system better, besides dropping the transaction fees? First, make the signature strip a little more hardy. Mine's worn off from so much usage that I often get asked for ID. (And no, I don't mind being asked. In fact, I expect it now.) Second, add a photo and/or a fingerprint of the person, so that it could sub as a photo ID. Third, make it a smart-card by adding a chip. And fourth, get rid of those damn user fees that want to ding me out of anywhere between $1-2 per transaction.

Comments

[redaxe.livejournal.com]

Second, add a photo and/or a fingerprint of the person, so that it could sub as a photo ID. Third, make it a smart-card by adding a chip. And fourth, get rid of those damn user fees that want to ding me out of anywhere between $1-2 per transaction.

Hm. I'll note that I blew my credit rating a while ago and am working to get it back. But I won't be getting a card from anyone who forces me to take one with a chip -- especially not a broadcasting chip, RFID or otherwise -- on it. And I expect those damned fees will increase, rather than otherwise, as more places accept cards. Which is why, even when I have got my credit back on a reasonable footing, I expect to use debit cards mostly. (Those DON'T typically charge that sort of fee on purchase. And that's why I so rarely use ATMs anymore; they all have fees, but there's none if I take cash back when grocery shopping.)

On-card photos, on the other hand, are a fine idea.

[bikergeek.livejournal.com]

I want to see laws on debit cards similar to those on credit cards protecting consumers against unauthorized use. On a CC your liability is limited to $50; on a DC your liability is limited only by the funds in your checking account.

Also, the holds placed on a DC may cause checks to bounce. F'rex, if you pull into a gas station, the pay-at-the-pump thingy gets an authorization for $50. This gets replaced with the real amount later, but in the day or two it takes to post the transaction, there's $50 missing from your checking account, not the $25 you think. IOW, if you have $100 in your checking account, and outstanding checks for $50 and $10, and you put $20 worth of gas in your car, you should still have $20 left over, right? Not! You're actually overdrawn by $10 because of the $50 hold on your card, until the hold comes off and gets replaced by the actual amount.

[redaxe.livejournal.com]

You have seen the "superheros" commercial that alleges that one or the other of the large debit card issuers will replace bucks, right? And IIRC another of the large banks is also advertising that they'll replace funds within a business day.

Not that I believe either of them will do it without the consumer jumping through flaming hoops rising just as one jumps. But that's what TV consumer advocates are for, post facto, I suppose.

[bikergeek.livejournal.com]

A lot of the banks are extending fraud protections similar to that offered with credit cards, but that's a matter of bank policy, not law. And be sure to read the fine print.

[redaxe.livejournal.com]

*nod* That's pretty much what I was getting at; that this is now a competitive arena, and that some providers are seeing that they will gain market share and good publicity with the policy. And that I don't expect it to be easy to make and fulfill a claim. (And yes, ALWAYS read the fine print, three times with an attorney on call.)

[candirhae-00.livejournal.com]

While we're at it we should all implant chips into our retinas and have scanners!!! :-P You'll have to forgive me, I'm just very irresponsible when it comes to the plastic. I need cash-in-hand to realize how much I'm losing every time I buy something. It makes me think twice before purchasing junk that will set around and collect dust. When I swipe a card I see nothing go, my card is handed back to me the same way I gave it out! I guess they call me a "hands on" kind of person! *giggles*

But I can see how it would be very convenient for people who can actually keep a handle on their spending, like my husband for instance. I'm still learning the downfalls to credit. I had my credit rating soaring there for a few months, then crashed it down to the ground by opening a single credit card. So, woah is me and the plastic. Ya for paper!

Do you think it wise for the seasonal places to accept VS/MC/AM EX? I wonder if they would profit. I know our company gets charged every time someone makes a purchase with a credit card.

-Candi-
She Of The Fruitless Checking Account...And Chocolate Cookie Trifles!

P.S. Thanks for reminding me of camp day! I'd almost forgotten! GO WORLDS BEST COFFEE!

[coop-girl.livejournal.com]

Heh...I'll "one-up" you...

I pay for *everything* on credit card. It's a credit card with a points program, so I get all kinds of free stuff. Each month the balance in full is automatically paid out of my savings account, which is where I deposit all my money nowadays.

Since the balance is paid in full every month, I get charged no interest. And since that money sits in my savings account for up to a month after I've actually spent it (the billing cycle time on my cc), I actually earn a few cents of interest as it waits to go out in payment.

Then at the end of the year I get a nice little summary that breaks down all my charges over the year into categories. Plus the free stuff, and the aforementioned fraud protection.

The hard part is just making sure I don't overspend. But I'm pretty good about that. :)