Why do people insist upon using credit/debit cards for small, daily purchases?

Question

I've noticed a huge trend lately of people using credit/debit cards for virtually every transaction they make, no matter how small. I work in a retail store and people will use them for $2-$3 purchases, which is asinine. Don't people realize that all they're doing is unwittingly furthering the goal of a cashless society and making banks even more money? Of course, there are times when the usage of a card is warranted, such as items bought remotely (mail/internet/phone sales) and larger purchases that you want the CC company's protection for or for something that you don't immediately have the cash on hand. Cards were never really intended for daily, intensive usage; this is part of the reason why there is so much fraud and identity theft. People also frequently live beyond their means with cards, which is another pitfall. I will stick to CASH, personally-no one makes/charges a transaction fee, and companies do not get personal info about me and my buying habits!

Answer 1

It's all about convenience. We are all moving toward a "more convenient" society....anything that is easier to do and accomplishes the same result. Doesn't matter if it's purchasing things, cooking (fast food), shopping (online), movies (home video rentals), etc, etc. As far as credit/debit cards, we are moving toward a cashless society. It's much easier and quicker to use debit cards...regardless of the amount of the puchase...since you don't have to worry about having the cash available. While I agree that very small purchases, $2 or $3, are better done by cash, it's really all about convenience. By the way, philosophically speaking, cash is nothing more than a hunk of metal or some paper (cloth really)...but it does represent how we move goods from one person to another. That can just as well be done by a hunk of plastic that moves money from your account to the seller's account.

Answer 2

There is no etiquette established for using your debit/credit card. And, hopefully there never will be.

Like most people I use my debit card for everything. As long as there is no charge and it remains "convenient" I'll use it. Rarely do I carry cash. Just face it .. a cashless society is inevitable and the banks are going to make the money regardless.

Sure, there is some minute possibility that someone could get a hold of your personal information, but, that doesn't usually happen on day-to-day transactions from the grocery store or local mall -- no, that's too risky. However, there is a larger possibility that someone can steal your life by robbing you and shooting you or killing you for the money you are carrying around to use for purchases (like an idiot).

Companies are gathering information from you and about you anyway and in a million different ways. That is just one more thing that is impossible to prevent.

Answer 3

You make it sound as if a cashless society would be a bad thing. The US Treasury spends a fortune printing and minting money, and essentially, it's unnecessary. Also, elimination of cash would also reduce the underground economy that only uses cash. How would a drug dealer manage his business when there's a nice paper trail of all transactions? These people that also insist on being paid in cash would have to start accepting forms of payment that have a paper trail, thus forcing them to pay income tax. Gee, what a shame!

That said, many people use credit/debit cards to keep a paper trail of their spending. Most people don't go broke because they're buying big screen t.v.'s. Many people fritter away their income with trips to buy coffee, fast food, etc. For some folks, reviewing their credit card statement helps them track their total purchases, even if those purchases are small. I do agree with you, though, that plenty of folks use credit cards to live well beyond what they can afford. Credit is like anything else-it's great when it's used properly, and dangerous when in the wrong hands.

Answer 4

Ok, 2$ and using a CREDIT card I can see being a little outrageos, but I use my DEBIT card for everything. Including 2$ coffee purchases. My bank does not charge anything and its actually safer than cash because if it gets stolen, I don't lose anything, and I am not responsible for any unauthorized transactions. I would much rather use my debit card. Debit cards are meant to be used on a daily basis, I think they make life easier, no more counting change, no more worrying about whether you have the right amount of cash, or when the bank is going to be open to get more. Just swipe the card and go.

Answer 5

It is easier to carry around one card than it is to carry cash. Since banks are no longer charging you to use your debit card, what do you care? It is the seller that pays the transaction fee. And if you are using a debit card rather than a credit card, you can't live beyond your means since the usage of the card is limited by the available cash you have in your checking account.

Besides, my bank (Bank of America) pays me to use my debit card rather than cash. With their Keep the Change program, they round up each of my debit card purchases and transfers the difference to my savings account. At the end of the year, they match this amount by 5%. A few cents here, a few cents there, adds up to quite a bit over the course of the year.

Answer 6

Credit Cards have their reward systems. The more that goes onto it the more frequent flier miles you get and so on.

That is one reason for it.

Myself I would rather pay for all in cash. Two dollar bills to be precise. Keeps people on their toes.

Answer 7

Plastic is is easier to carry than cash... If you lose cash, it's gone... If you lose plastic, you can get it replace, with no loss of cash...I use both plastic (i.e. debit card) and cash, plastic is more convenient to use...