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  • FIRST POST
    • MSE Luke
    • By MSE Luke 6th Nov 17, 12:48 PM
    • 261Posts
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    MSE Luke
    4 reasons cash is dead and you shouldn’t use it…
    • #1
    • 6th Nov 17, 12:48 PM
    4 reasons cash is dead and you shouldn’t use it… 6th Nov 17 at 12:48 PM
    This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.





    Please click 'post reply' to discuss below.
Page 1
    • Wizard of Id
    • By Wizard of Id 6th Nov 17, 3:14 PM
    • 2,787 Posts
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    Wizard of Id
    • #2
    • 6th Nov 17, 3:14 PM
    • #2
    • 6th Nov 17, 3:14 PM
    All I can say is that it seems to be taking its own sweet time about going.
    I have been getting told that 'cash is dead' for 40+ years and yet...........
    Every man is innocent until proven broke.
    Cryin won't help you, prayin won't do you no good.

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    • aj23
    • By aj23 6th Nov 17, 11:07 PM
    • 83 Posts
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    aj23
    • #3
    • 6th Nov 17, 11:07 PM
    • #3
    • 6th Nov 17, 11:07 PM
    I can't believe MSE is telling people not to use cash. A cashless society means 100% governmental tracking of spending and movement. It also means business will have to pay between 2% and 4% on every single transaction which will cost them a lot of money. Cash isn't dead, it's the most used method of payment (I know someone will say statistically it isn't, it's cards, but there is a black market which runs exclusively on cash....)
    • PasturesNew
    • By PasturesNew 6th Nov 17, 11:09 PM
    • 61,304 Posts
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    PasturesNew
    • #4
    • 6th Nov 17, 11:09 PM
    • #4
    • 6th Nov 17, 11:09 PM
    If I go to a safe/official ATM and withdraw Ł100, I know that Ł100 has left my account and I have Ł100 of buying power in my pocket. I can then spend that Ł100 and acquire goods and pies.

    If, instead, I rely on 20-30 small transactions, willy nilly, at a variety of locations, for bits and bobs and pies, I'm "risking" 20-30x that each of those transactions was performed safely and my account is not being compromised.

    I'll stick with cash.... you know where you are with that.

    I'd also prefer to run the risk of dropping/forgetting my card ONCE in one machine .... than having to forever double-check I did pick it up/didn't drop it at the last location I used it. I'd rather run the risk of dropping a Ł10 note, than dropping that card and all the associated waiting/inconvenience of being unable to spend any money.
    • zerog
    • By zerog 7th Nov 17, 3:59 AM
    • 2,318 Posts
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    zerog
    • #5
    • 7th Nov 17, 3:59 AM
    • #5
    • 7th Nov 17, 3:59 AM
    Different payment methods have different uses.

    In 1950, 100% of transactions were by cash, and it was probably the case that cash wasn't the best for all of them.

    This does not mean that in 2050 100% of transactions need to be non-cash.

    The introduction of new payment methods means that everyone has more options, yet people like Martin Lewis want options to be taken away.

    For anti-cash people, why don't you go and read some of the stories on the Bank Accounts forum where people are the victim of fraud and then all their accounts are closed.
    • aj23
    • By aj23 7th Nov 17, 9:42 AM
    • 83 Posts
    • 49 Thanks
    aj23
    • #6
    • 7th Nov 17, 9:42 AM
    • #6
    • 7th Nov 17, 9:42 AM
    If I go to a safe/official ATM and withdraw Ł100, I know that Ł100 has left my account and I have Ł100 of buying power in my pocket. I can then spend that Ł100 and acquire goods and pies.

    If, instead, I rely on 20-30 small transactions, willy nilly, at a variety of locations, for bits and bobs and pies, I'm "risking" 20-30x that each of those transactions was performed safely and my account is not being compromised.

    I'll stick with cash.... you know where you are with that.

    I'd also prefer to run the risk of dropping/forgetting my card ONCE in one machine .... than having to forever double-check I did pick it up/didn't drop it at the last location I used it. I'd rather run the risk of dropping a Ł10 note, than dropping that card and all the associated waiting/inconvenience of being unable to spend any money.
    Originally posted by PasturesNew
    Well said.
    • aj23
    • By aj23 7th Nov 17, 9:44 AM
    • 83 Posts
    • 49 Thanks
    aj23
    • #7
    • 7th Nov 17, 9:44 AM
    • #7
    • 7th Nov 17, 9:44 AM
    Different payment methods have different uses.

    In 1950, 100% of transactions were by cash, and it was probably the case that cash wasn't the best for all of them.

    This does not mean that in 2050 100% of transactions need to be non-cash.

    The introduction of new payment methods means that everyone has more options, yet people like Martin Lewis want options to be taken away.

    For anti-cash people, why don't you go and read some of the stories on the Bank Accounts forum where people are the victim of fraud and then all their accounts are closed.
    Originally posted by zerog
    Martin Lewis probably says it because he advertises bank accounts on this website, some links to which MSE gets paid for. He may be a money saving expert, but he's also worth tens of millions.
    • phillw
    • By phillw 9th Nov 17, 8:24 PM
    • 1,095 Posts
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    phillw
    • #8
    • 9th Nov 17, 8:24 PM
    • #8
    • 9th Nov 17, 8:24 PM
    I wish the trollies at aldi took contactless cards rather than pound coins.

    I find the "cash is dead posts" make me want to use cash, when I don't normally so I think they are counterproductive. A story about cheques being dead will make me want to write more cheques too, I normally only use them for birthday/christmas money and transferring to non current accounts.

    I have used cards since I was 18 because my parents told me that unless I borrowed money then nobody would know I could pay it back. I'm not sure how in the 1980's my parents knew that.

    I don't like the idea of drawing out cash and then spending it, I wouldn't want to run the risk of running out so I'd keep drawing out larger amounts but then I'd spend it anyway because it was there. At least with a card I know I can't run out. It's been so long that I regularly used cash, that if I do have cash then I don't want to spend it and will prefer to use a card. I now deposit cash if it's stayed in my wallet for a couple of days, gotta earn interest.....

    I guess I use the vague knowledge of how much I've spent on the card to scare me away from spending more, rather than giving me an excuse to keep spending.
    Last edited by phillw; 09-11-2017 at 8:54 PM.
    • andygb
    • By andygb 10th Nov 17, 8:33 AM
    • 12,011 Posts
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    andygb
    • #9
    • 10th Nov 17, 8:33 AM
    • #9
    • 10th Nov 17, 8:33 AM
    Cash is going to be around for some time yet.
    As PasturesNew correctly pointed out, it allows you to monitor your own spending instead of just flashing the card and hoping for the best at the end of the day.
    There are so many things which demand cash payments - my window cleaner, the local Chinese and Indian restaurant, all the takeaway services, market stalls, odd job people, leaving tips for waitors/waitresses/hairdressers, charity boxes.
    Most financial fraud and money laundering crime happens online - does not involve cash.
    Cash is alive, well and kicking.
    I have zero credit card debt, because I only buy stuff if I can afford it, and cash helps me achieve that.
    • societys child
    • By societys child 10th Nov 17, 9:11 PM
    • 4,953 Posts
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    societys child
    As an ex overseas trucker, I'd have been in some dire situations without cash in my pocket. Bent officials don't do plastic.

    And when things really go wrong, you can't fly home on a piece of plastic . . .

    • JJ Egan
    • By JJ Egan 11th Nov 17, 10:32 AM
    • 10,065 Posts
    • 4,165 Thanks
    JJ Egan
    This is a bit like Linux is going to takeover the desktop saga .Or the CD is going to wipe out vinyl .
    Personally i prefer a monkey on the hip to an easy to read / clone card .
    You usually get through the checkout much quicker with cash than all those fiddling with pins .
    • bugslet
    • By bugslet 12th Nov 17, 10:59 PM
    • 5,901 Posts
    • 28,765 Thanks
    bugslet
    As an ex overseas trucker, I'd have been in some dire situations without cash in my pocket. Bent officials don't do plastic.

    And when things really go wrong, you can't fly home on a piece of plastic . . .
    Originally posted by societys child

    We still send ours out with running money. Being old ish myself I can get sentimental for the days you handed your passport with notes in it and got it back without the notes
    • benjus
    • By benjus 14th Nov 17, 1:47 PM
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    benjus
    The title of the article is daft - cash certainly isn't dead and probably won't be for a long time, if ever. Although I was recently at a place (can't remember what it was now) which only accepted cards, no cash at all.

    Having said that, the points in the article are all good ones - cards do have lots of advantages. I've received a lot of perks through card use and used card protection quite a few times when firms have failed to deliver what I paid for.

    I'm not really persuaded by all the tin-foil-hat arguments either. In the 25 years or so that I've used cards, I've had a handful of fraudulent transactions and one instance of a card being cloned and used to withdraw large amounts of cash (on a credit card account). I didn't lose out financially for any of these and there was no major hassle.

    So I'll stick to the cards as much as possible and just keep the cash for the occasions when it's really the only option.
    Let's settle this like gentlemen: armed with heavy sticks
    On a rotating plate, with spikes like Flash Gordon
    And you're Peter Duncan; I gave you fair warning
    • benjus
    • By benjus 14th Nov 17, 1:52 PM
    • 5,043 Posts
    • 3,098 Thanks
    benjus
    It also means business will have to pay between 2% and 4% on every single transaction which will cost them a lot of money.
    Originally posted by aj23
    Do you have a source for that? Debit card fees are typically very low, and credit card fees are more like 1.5%.

    And do you think handling cash is free? Small businesses may find that their business bank account charges them to pay in cash, and larger retailers will be more worried about the question of physically getting the money safely to a bank or wherever else it needs to be.
    Let's settle this like gentlemen: armed with heavy sticks
    On a rotating plate, with spikes like Flash Gordon
    And you're Peter Duncan; I gave you fair warning
    • toontastic
    • By toontastic 24th Nov 17, 3:10 PM
    • 340 Posts
    • 159 Thanks
    toontastic
    I usually agree with what Martin says but I really hope he does a bit of further research. This seems to look at security only and not the implications of using cards over cash.
    Using plastic reduces the feeling of pain when spending so it has been proven you are more likely to spend more money when using plastic over cash where you feel and see the actual pain of spending the money. McDonalds for example noticed a 12-18% increase in purchases when they installed card machines.
    Plastic has its uses for large payments but cash overall stops you spending as much and helping you budget.
    • Pennywise
    • By Pennywise 27th Nov 17, 12:06 PM
    • 9,631 Posts
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    Pennywise
    In 1950, 100% of transactions were by cash, and it was probably the case that cash wasn't the best for all of them.
    Originally posted by zerog
    No it wasn't. There was widespread use of cheques, postal orders, stamps, payable orders, bank drafts, etc. You would use a postal order or stamps to pay for small items via mail order (yes, we did have mail order back then!). You'd use cheques or bank drafts for bigger payments. We were a long way from being a "cash only" society.
    • Pennywise
    • By Pennywise 27th Nov 17, 12:12 PM
    • 9,631 Posts
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    Pennywise
    No one has mentioned the risks - how about being unable to buy stuff when there's a power cut or the broadband is down?

    During Storm Desmond, our towns were without electricity for four days. There were people stranded away from home because they couldn't get any cash to pay for taxi fares, train tickets, etc. There were people who couldn't buy any food nor drink because they had no cash and the cash machines weren't working.

    For those of us who were affected, it really brought it home just how vulnerable we are without electric, and even moreso without cash in our pockets!
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