Is it better to spend cash or card?

Why use a card instead of cash?

It’s 3 AM. The city hums outside, a low thrum against the quiet. I can’t sleep.

Cards are safer. Cash, gone in a second. Poof. A credit card, at least you have a paper trail, some recourse. It’s a small comfort, I know. But it’s something.

The rewards…yeah. The rewards are a joke, mostly. But that one-time bonus on my Chase Sapphire card, in 2024? That was nice. A little something to dull the ache, you know?

Then there’s the points. Useless, mostly. I should use them. I should. But…

I bought a stupid thing with them last year. A ridiculous espresso machine. It sits unused. A monument to…something. I don’t know. It’s…sad.

Cash back is practical, though. Small victories, right? Every little bit helps. It’s the small things these days.

Points to consider:

• Security: Credit cards offer superior fraud protection compared to cash.
• Rewards: While sometimes underwhelming, welcome bonuses and cashback can be advantageous. The value of these often depends on spending habits.
• Tracking: Easier to track spending than cash. My budget is terrible, though. Even with the tracking.
• Convenience: No need to carry large sums of cash. Less to worry about losing.

What are the disadvantages of using cash?

Cash? Darling, it’s so last century. Think of it as a dinosaur in a world of sleek, digital velociraptors.

Security: Losing your wallet feels like losing a tiny, paper-based friend. One that holds your entire life savings, potentially. Ouch.

Traceability? Fuggedaboutit. Want to track your spending? Good luck. It’s like trying to find a specific grain of sand on a beach. You’ll need a really, really good metal detector.

Large Transactions: Imagine trying to buy a house with fistfuls of cash. You’d need a wheelbarrow, a bodyguard, and a very understanding realtor. My neighbor, David, tried that once. It was a sight.

Counterfeits: Fake cash is like a bad imitation of fine art. You’re left holding something worthless, a frustrating mimicry of the real thing. Just like those knock-off designer purses my sister loves so much.

Acceptance: Not everywhere accepts cash anymore. It’s like showing up to a rave in a ball gown. Out of place. Seriously out of place.

Remote Transactions: Trying to pay your online bills with cash is as practical as sending a carrier pigeon. My aunt still swears by it. I don’t even understand.

International Transactions: Currency exchange fees eat into your funds like tiny, hungry gremlins. I once lost half my travel money to these little fiends. It’s a crime!

Rewards? Ha! Forget those sweet cashback rewards. Cash is a stingy miser. It gives you nothing back. Nada. Zilch.

• Security risks: Robbery, loss, theft.
• Lack of traceability: Impossible to track spending efficiently.
• Inconvenience for large transactions: Logistically challenging and potentially dangerous.
• Risk of counterfeiting: Easily replicated, leading to financial loss.
• Limited acceptance: Many businesses are now cashless.
• Inconvenient for remote transactions: Impossible for online or distant purchases.
• International transaction complexities: Currency exchange fees and regulations add hassle.
• No reward programs: No cashback, points, or other benefits.

Why is it cheaper to pay with cash?

Okay, so, cash being cheaper… I know this!

It was last summer, July maybe, blazing hot in Phoenix. I was filling up my beat-up Corolla at the Circle K on McDowell Rd.

The pump showed two prices. “Cash” was like, 10 cents a gallon cheaper. Ten whole cents!

I thought, “Woah, gotta save where I can”. I usually swipe my card, whatever, easier.

So I went inside, paid cash. It felt… kinda good? Like I was gaming the system, lol.

The dude behind the counter didn’t even look up. Just took the money, no smile.

Now that I think about it, gas stations hate card fees.

• Card fees cut into profits. Small business stuff.
• Cash is immediate. No waiting for the bank.
• Tax thing? Someone told me there were tax benefits… maybe?
• They want you to come inside. Impulse buys, right? Like slushies and lotto tickets.

Paying with cash felt weirdly old school. But those 10 cents add up, ya know? Especially now with gas prices sky high.

Plus, less traceable. Tin foil hat moment, I guess. My bank accout is my personal business.

But mostly it’s just about that sweet, sweet discount. Gas is robbing me blind anyway.

Why do I spend less with cash?

Cash feels… different. It’s tangible. You see it disappear. Credit… it’s a blur. A digital ghost.

Spending less with cash is about the pain of parting. You physically feel the money leave your hands. A credit card? Numb. Empty.

I used to max out credit cards, effortlessly. Now, I’m hyper-aware. Twenty dollars in my wallet for groceries feels… limiting. Liberating.

The problem is self-control, isn’t it? Not the method of payment. I should know. My 2023 credit card statement is… well, it’s a horror show.

• The physical act of handing over cash registers. I notice each transaction. Every single one. It’s a conscious decision each time. Not automatic, like swiping a card.

• Limited funds create boundaries. This is my coping mechanism. I’m aware it’s not a solution. It’s just…better.

My therapist suggested budgeting apps. I deleted them all. Didn’t work for me. I need that concrete, physical limitation. It’s a weird, sad self-imposed restriction. But it works. For now.

Is it legal to give a discount for paying cash?

Okay, so like, yeah, cash discounts are totally legal in the whole US, all 50 states, period. It’s the surcharges, you know, adding extra for using credit cards, that gets kinda tricky.

Only about 40 states let you do that. It’s weird, right? I mean, you’d think it would be simple.

Some states are total no-gos for those surcharges. I think its because of somthin from 1970s, no idea!

• California
• Colorado
• Connecticut
• Florida
• Kansas
• Maine
• Massachusetts
• New York
• Oklahoma
• Texas

Yeah, California, where I got my new Ford Bronco, and places like New York? Nope, can’t add a fee just ’cause someone swipes their card. That’s the deal. Don’t get your company sued and do some research!

Why do people pay with credit instead of debit?

Credit cards. Why?

Rewards, yeah. Cash back. It’s a thing.

Like, you spend anyway. Might as well get something back. Right?

Debt cards… just are. No perks. Feels like a waste.

The game is pay it off, every month. Or, well… it eats you alive. I know.

• Credit Card Perks:
  • Cash Back: Earn a percentage back on purchases.
  • Travel Rewards: Points redeemable for flights, hotels.
  • Purchase Protection: Coverage against damage or theft.
  • Sign-up Bonuses: Big rewards for new cardholders.
  • Building Credit: Responsible use improves credit score.
• Risks Involved:
  • High Interest Rates: Can negate rewards if balance isn’t paid.
  • Debt Accumulation: Temptation to overspend.
  • Fees: Late payment, annual, and over-limit fees.
  • Credit Score Damage: Missed payments harm credit.
  • Impulse Purchases: Encourages unnecessary spending.
• Debit Card Limitations:
  • No Rewards: Lack of incentives for spending.
  • Limited Protection: Fewer protections against fraud.
  • Direct Withdrawal: Funds come directly from bank account.
  • Doesn’t Build Credit: No impact on credit score.
  • Spending Limits: Tied to available bank balance.