Credit Card Only Stores? Whatcha think?

@Linkat,

Linkat wrote:

tsarstepan wrote:

jespah wrote:

People who can't pay their credit card bills on time are going to get dinged for interest on buying a stick of gum -- and slow payments for that gum will also lower their personal credit scores.

You're glossing over debit cards. With credit card only stores? They consider debit cards and credit cards basically the same.

What about bank fees with using the debit card? Depending on your bank/your account - you could accrue lots of fees using your debit card.

What debit card bank fees? I've never had bank fees for using my debit card (various banks over the past 19 years living in NYC). Then again, if you're into banking using credit unions... for principale's sake? That's the compromise you make.

1 Reply

@engineer,

engineer wrote:

Credit card companies charge a pretty penny to businesses accepting credit cards so it makes since small businesses will avoid that expense.

But if the small business chooses to go cashless and CHOOSES this option knowing full well of the very well know fee structure of credit cards? They should be punished for their own business decisions? And yes. Literally every cashless retail businesses I've encountered were small businesses (not national franchises).

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@tsarstepan,

That's the question. You can make an argument that it is more efficient for the business since they don't have to handle cash and make bank trips. You can also argue that it is pretty effective discrimination against minorities and the poor who often don't have access to banking. Personally, I think the latter outweighs the former, but I see both arguments.

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Found this FDIC report on the unbanked and underbanked population.

Quote:

An estimated 7.7 percent of U.S. households, approximately 9 million, are unbanked. These households do not have a checking or a savings account.

The proportion of U.S. households that are unbanked varies considerably among different racial and ethnic groups, with certain racial and ethnic minorities more likely to be unbanked than the population as a whole. Minorities more likely to be unbanked include blacks (an estimated 21.7 percent of black households are unbanked), Hispanics (19.3 percent), and American Indian/Alaskans (15.6 percent). Racial groups less likely to be unbanked are Asians (3.5 percent) and whites (3.3 percent).

In addition to the unbanked households, an estimated 17.9 percent of U.S. households, roughly 21 million, are underbanked. These households have a checking or savings account but rely on alternative financial services. Specifically, underbanked households have used non-bank money orders, non-bank check-cashing services, payday loans, rent-to-own agreements, or pawn shops at least once or twice a year or refund anticipation loans at least once in the past five years.

Certain racial and ethnic minorities are more likely to be underbanked than the population as a whole. Minorities more likely to be underbanked include blacks (an estimated 31.6 percent), American Indian/ Alaskans (28.9 percent), and Hispanics (24.0 percent). Asians and whites are less likely to be underbanked (7.2 percent and 14.9 percent, respectively).

1 Reply

@tsarstepan,

this is why I said it depends on the bank, the type of account you have - unfortunately it tends to be the ones that can least afford it (or those that just don't pay attention) that are subject to these fees.

I also do not generate fees due to the type of account I have, that I have direct deposit, and meet a few other requirements. I also pay attention (not associated directly with my debit card, but with my account) to these other fees and how to avoid them if you don't you could be paying alot more than you realize.

However, some other sap going to the same bank could generate fees for using their debit card. They may not have an option like you of having a convenient credit union to go to or unaware there are other options.

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@engineer,

Lots of financial vulnerability, per the Center for Financial Services Innovation. See: https://cfsinnovation.org/u-s-financial-health-pulse/

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@Linkat,

Linkat wrote:

this is why I said it depends on the bank, the type of account you have - unfortunately it tends to be the ones that can least afford it (or those that just don't pay attention) that are subject to these fees.

I also do not generate fees due to the type of account I have, that I have direct deposit, and meet a few other requirements. I also pay attention (not associated directly with my debit card, but with my account) to these other fees and how to avoid them if you don't you could be paying alot more than you realize.

However, some other sap going to the same bank could generate fees for using their debit card. They may not have an option like you of having a convenient credit union to go to or unaware there are other options.

This is a helpful answer. Thanks. I find it confusing when people who have j0bs but refuse direct deposit ... simply of suspicion against banks.

And I get unemployed individuals and family heads are really screwed by their unfortunate financial situation that keeps them from holding bank accounts. I guess some people who don't live in big cities don't have any banks in their proverbial low income neighborhoods which also exasperate the whole underbanking crisis.

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@tsarstepan,

I did know that there were stores that didn't take cash.

This is news to me.

That is horrible.

I am happy to see that there is someone doing something to ban cashless store.

As a consumer, when I walk into a store, I would like the option to pay with cash, debit card, and credit card.

Let's not take payment methods and options away from consumers.

Let the consumer have all three payment options.

The more payment options that are available, the more convenient it will be for all consumers.

Let's remember that cash is one of those payment options.

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@tsarstepan,

Banks, Retailers Clash Over Move to Cap Debit Card 'Swipe Fees'

Banks, retailers and lawmakers are preparing for a showdown over hidden "swipe fees" banks charge retailers when consumers make debit card purchases. Judy Woodruff talks with the American Bankers Association's Nessa Feddis and the National Retail Federation's Mallory Duncan about the battle over fees and the impact on consumers.

Published March 8, 2011

1 Reply

@Real Music,

Quote:

I did know that there were stores that didn't take cash.

Ooops. I made a typing error.

I meant to say "I did not know that there were stores that didn't take cash"

1 Reply

@Real Music,

Yeah, but I knew you didn't mean what you said.

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@Real Music,

1. I think we should get rid of cash.

2. I think that as a society we should develop a system of electronic payment that is free or low cost for the poor and provides us with some amount of privacy.

Would anyone object to that? Passing around green rectangles doesn't make much sense to me when we have electronic alternatives. I would like to see a government policy aimed at reducing bank fees for electronic currency.

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@maxdancona,

Where we disagree is I believe we should all have the option to use cash.

The keyword being "option"

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@maxdancona,

maxdancona wrote:

1. I think we should get rid of cash.

2. I think that as a society we should develop a system of electronic payment that is free or low cost for the poor and provides us with some amount of privacy.

Would anyone object to that? Passing around green rectangles doesn't make much sense to me when we have electronic alternatives. I would like to see a government policy aimed at reducing bank fees for electronic currency.

I disagree with this - what happens when there is a mass electrical outages, systems break down? It has happened on more than one occasion where I went to purchase some items and the "system was down." Those with cash were able to complete their transaction whereas those with credit or debit and no cash could not.

Not to mention things like children - lemonade stands, car wash fund raisers, babysitting, etc.

1 Reply

@Linkat,

You kind of have a point with power outages.... but I can't remember this happening large scale in decades, and there is a solution since everyone carries around smartphones that have batteries.

That being said, any child old enough to babysit is old enough to have a cell phone.

1 Reply

@maxdancona,

No, not everybody has a cellphone. I know a few who do not. And what happens when the battery goes lifeless?

And in cases of natural disasters, (tornado, hurricane, blizzard, earthquake) quite often all computers are down. Cellphone towers are not operational. Cash may be the only way to purchase food, candles and other necessitates.

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The internet itself is a gigantic cashless store.
There are millions of items that you can only buy online.

There are many many things that are cashless in our society.

Also, there are non-banking solutions to a cashless society. For example, Walmart offers a money card solution that is basically free and those things are everywhere.

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@Sturgis,

Sturgis wrote:

And in cases of natural disasters, (tornado, hurricane, blizzard, earthquake) quite often all computers are down. Cellphone towers are not operational. Cash may be the only way to purchase food, candles and other necessitates.

Well, I imagine millions of people would be screwed anyway since almost all money is kept in banks.

I don't remember that last time I had more than $60 cash on me at any given time. That wouldn't last long if I needed to buy necessities for an extended emergency.

I'd be that 90% of my days I have $0 cash on my person or in my home.

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@Sturgis,

Sturgis wrote:

No, not everybody has a cellphone. I know a few who do not. And what happens when the battery goes lifeless?

And in cases of natural disasters, (tornado, hurricane, blizzard, earthquake) quite often all computers are down. Cellphone towers are not operational. Cash may be the only way to purchase food, candles and other necessitates.

This is the reason that most Americans keep horses in the garage for gas shortages, kerosene stoves for power failures.

I always keep my hourglass ready for any emergency.

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@Real Music,

Real Music wrote:

Banks, Retailers Clash Over Move to Cap Debit Card 'Swipe Fees'

Published March 8, 2011
[youtube]https://www.youtube.com/watch?v=AIdMVRsVzig[/youtube]

Thanks for the video. I'm now wondering though how much of this news report is obsolete (legislatively and banking industry wise) given it's well over 8 years old and so much has changed retail/banking wise in that very long time.

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Credit Card Only Stores? Whatcha think?

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