Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A simple poll question: When you buy stuff, do you pay by cash, credit, debit, or some other method? Do you feel like you're saving as much money as you'd like?
I usually carry about $200 in cash and typically pay cash for minor purchases say less than $25. I use debit for other local purchases. I use AMEX or PayPal for online purchases. I have a MasterCard that rarely gets used and usually only once every few months to keep it active.
A simple poll question: When you buy stuff, do you pay by cash, credit, debit, or some other method?
A simple point... if you are PAYING then you are using cash to do it with. There is no other method.
HOW you manage the payment logistics (cash, checks, cards) doesn't matter.
Not managing the payment logistics by running up your Credit Card balances?
You're not paying for your stuff.
A simple poll question: When you buy stuff, do you pay by cash, credit, debit, or some other method? Do you feel like you're saving as much money as you'd like?
I try to buy everything with credit because I get points on my card which pays off a lot. I'm within my goal of saving each month.
A simple point... if you are PAYING then you are using cash to do it with. There is no other method.
HOW you manage the payment logistics (cash, checks, cards) doesn't matter.
Not managing the payment logistics by running up your Credit Card balances?
You're not paying for your stuff.
Except there are various bits off research that say the payment methods DO matter (cite & cite). Paying the bill in full every month is not the same as growing a savings or investment account. I made the poll here because I thought it would be interesting to see if there are similar results here.
I pay however it's beneficial for me to complete the transaction.
If cash gets me a discount I pay cash
If not, I use a cc so I get cash back and vendor pays a fee.
I don't use debit. I have used my debit card as a cc.
I pay the cc in full when I get the bill in the mail.
As for savings I spend way less than my income so I put away a good chunk. But I don't buy frivolously and what I do buy it's good quality so it lasts
Except there are various bits off research that say the payment methods DO matter
Not really. These distinctions are, as was said, the "logistics" of how payment is transmitted.
Focusing on such takes focus off what actually matters...
Quote:
Paying the bill in full every month is not the same as growing a savings or investment account.
Correct. The two are totally unrelated.
Well, assuming the CASH is actually available to make it a choice.
Not really. These distinctions are, as was said, the "logistics" of how payment is transmitted.
Focusing on such takes focus off what actually matters...
It matters in that, according to the research, people are spending cash they otherwise would not have spent just because it's electronic instead of physical paper and coins. Supposedly, people who use plastic to pay are far more likely to buy on impulse and to overpay for items. It's human psychology, which isn't usually rational or logical.
Quote:
Correct. The two are totally unrelated.
Well, assuming the CASH is actually available to make it a choice.
Income minus expenses must be greater than 0 in order to have anything to save. If the choice of payment method impacts the expenses part of the equation, then they certainly are related.
Income minus expenses must be greater than 0 in order to have anything to save.
If the choice of payment method impacts the expenses part of the equation,
then they certainly are related.
Only if you are adding debt into the equation.
This may be implied ...but it isn't stated.
But as E4U mentioned using CC's can actually add to the cash available (with rebates etc).
IF the user has enough self control to use them responsibly.
Too few do.
Quote:
...people are spending cash they otherwise would not have spent just because it's electronic
...people who use plastic to pay are far more likely to buy on impulse and to overpay for items.
I try to buy everything with credit because I get points on my card which pays off a lot. I'm within my goal of saving each month.
This. My Credit Union gives me 1.5% cash back on all credit card purchases. It actually makes sense to use my CC to pay my rent in spite of the "convenience fee" the apartments charge because the cash back comes out a few dollars ahead of the fee. I pay the card off as soon as purchases clear, that way my credit utilization stays really low on my credit report.
Quote:
Originally Posted by http://bluzelle.com/how-does-visa-and-mastercard-really-work/
Let’s say you go and buy some headphones for $100 from Best Buy (the merchant) with your Bank of America Visa. Best Buy will get charged a merchant fee of 2.4%, giving them a take home of $97.60. Now this is where it gets interesting. Of the $2.40 left, Bank of America (the Issuer) receives $1.60. This is called the interchange fee. Essentially the interchange fee is what the Issuer receives on a transaction (in this case the interchange rate is 1.6%). The remaining $0.60 goes to the Acquirer, in this case it may be Chase as they provided the tech for Best Buy’s POS system.
I used to shop at a mom & pop place that gave you 3% off for paying cash. I'm no expert, but I suspect that's because most businesses raised their prices 3% to compensate for everyone using credit or debit cards. If that's true, might as well get 1.5% of that back at least.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
