In an age where it has become easier to pay for goods and services with debit and credit cards, it can be difficult to remember the good old days when cash was king.

But there’s a good reason why opting for coins and notes over online payments is still popular.

Recently, Fiona Edmunds, a mother-of-three from Brisbane, revealed how physical money will retain its value.

In a Facebook post that has quickly made the rounds on social media, Ms Edmunds illustrated the hidden cost of using a bank card.

A mum-of-three from Brisbane gave an elegantly simple explanation for why paying with cash is better than using a credit card. Credit: Shutterstock.

'I have a $50 banknote in my pocket and I go to a restaurant and pay for dinner with it,' she explains.

'The restaurant owner then uses the bill to pay for their laundry. The laundry owner then uses the bill to pay the barber. After an unlimited number of payments, it will still remain at a $50 value which has fulfilled its purpose to everyone who used it for payment.'

However, if you pay with a card, the amount paid will gradually diminish in value because part of it will be eaten away by fees.

'BUT if I come to a restaurant and pay digitally via card, the bank fees for my payment charged to the seller could be up to 3 per cent or $1.50,' she continued.

Ms Edmunds claimed that up to 3 per cent of payment can be charged to the seller by banks, and added that this percentage will be imposed on every other transaction paid with the same card.

'Therefore after 30 transactions, the initial $50 will exist at only $5 and the remaining $45 has become the property of the bank,' she explains.

It should be noted, however, that this simplified example does not give the full picture, and the fees charged by banks for credit card transactions vary widely.

Regardless, the principle that Ms Edmunds is getting at is accurate: In the long run, banks and credit card companies will generally take a portion of your money every time you make a transaction that inevitably becomes theirs over time.

'Use it or lose it folks... cash is king,' she finished.

Meanwhile, the Reserve Bank of Australia confirmed that while there's truth to what the mum claimed, the average cost for certain businesses to use banks' or credit card companies' payment services has decreased.

'However, consumers are making more payments with cards than ever before, which is raising total payment costs for merchants,' the RBA remarked.

It's also worth noting that smaller businesses face considerably higher card payment costs for each and every transaction than larger businesses.

This means that in some cases, merchants may pass on a surcharge to the customer in order to cover the cost of payment.

Here are a few examples of the fees a merchant might pay depending on the type of card they accept:

Eftpos: Less than 0.5 per cent
Visa and Mastercard debit: Between 0.5-1 per cent
Visa and Mastercard credit: Between 1-1.5 per cent
American Express: Between 1.5-2 per cent

Key Takeaways

• Using cash over cards is more beneficial to you and the community because banks and credit card companies will take a cut from each transaction
• Businesses, especially smaller businesses, suffer more from high card payment costs, with merchants paying up to 3 per cent in fees
• Businesses are allowed to pass on surcharges to customers to cover merchant fees, but the amount cannot exceed the fee amount
• So, even though cash might be inconvenient or old-fashioned, it's a better option for both you and local businesses in terms of maintaining the value of your money

Given this information, members, it's no wonder why many recommend starting to pay for products in cash if you can. By paying with cash, you can avoid unnecessary surcharges, and keep more money in your own pocket!

What are your thoughts, folks? Do you regularly pay for your everyday purchases with cash?

 

[Observer]

I’ve noticed also (I’m in Qld) that when I tap my card I get charged a little extra. I’ve noticed that when I make a purchase at Aldi and some newsagents (when I purchase my lotto) by inserting my card and selecting “savings” and using a PIN number I don’t get charged any extra. My card even though it says Visa Debit, my card is only debit. I’m


I’m in Qld and I’ve noticed Aldi and some newsagents (when purchasing lotto) have a surcharge when I make a purchase I insert my card and select “savings” and enter my pin. My card is a debit card not credit. Not sure which other merchants charge extra.

There are lots of places around that do the same thing. Anything for the extra dollar. It's not like they are not making a profit on their sales of goods. Greedy F*&^%$s you ask me.

 

[Observer]

Donut king charge for using a card

Don't buy from them then? If Aussies banded together and refused to purchase due to extra charges, they would soon be changing their tact and drop the fees.

 

[TDean]

In an age where it has become easier to pay for goods and services with debit and credit cards, it can be difficult to remember the good old days when cash was king.

But there’s a good reason why opting for coins and notes over online payments is still popular.

Recently, Fiona Edmunds, a mother-of-three from Brisbane, revealed how physical money will retain its value.

In a Facebook post that has quickly made the rounds on social media, Ms Edmunds illustrated the hidden cost of using a bank card.

A mum-of-three from Brisbane gave an elegantly simple explanation for why paying with cash is better than using a credit card. Credit: Shutterstock.

'I have a $50 banknote in my pocket and I go to a restaurant and pay for dinner with it,' she explains.

'The restaurant owner then uses the bill to pay for their laundry. The laundry owner then uses the bill to pay the barber. After an unlimited number of payments, it will still remain at a $50 value which has fulfilled its purpose to everyone who used it for payment.'

However, if you pay with a card, the amount paid will gradually diminish in value because part of it will be eaten away by fees.

'BUT if I come to a restaurant and pay digitally via card, the bank fees for my payment charged to the seller could be up to 3 per cent or $1.50,' she continued.

Ms Edmunds claimed that up to 3 per cent of payment can be charged to the seller by banks, and added that this percentage will be imposed on every other transaction paid with the same card.

'Therefore after 30 transactions, the initial $50 will exist at only $5 and the remaining $45 has become the property of the bank,' she explains.

It should be noted, however, that this simplified example does not give the full picture, and the fees charged by banks for credit card transactions vary widely.

Regardless, the principle that Ms Edmunds is getting at is accurate: In the long run, banks and credit card companies will generally take a portion of your money every time you make a transaction that inevitably becomes theirs over time.

'Use it or lose it folks... cash is king,' she finished.

Meanwhile, the Reserve Bank of Australia confirmed that while there's truth to what the mum claimed, the average cost for certain businesses to use banks' or credit card companies' payment services has decreased.

'However, consumers are making more payments with cards than ever before, which is raising total payment costs for merchants,' the RBA remarked.

It's also worth noting that smaller businesses face considerably higher card payment costs for each and every transaction than larger businesses.

This means that in some cases, merchants may pass on a surcharge to the customer in order to cover the cost of payment.

Here are a few examples of the fees a merchant might pay depending on the type of card they accept:

Eftpos: Less than 0.5 per cent
Visa and Mastercard debit: Between 0.5-1 per cent
Visa and Mastercard credit: Between 1-1.5 per cent
American Express: Between 1.5-2 per cent

Key Takeaways

• Using cash over cards is more beneficial to you and the community because banks and credit card companies will take a cut from each transaction
• Businesses, especially smaller businesses, suffer more from high card payment costs, with merchants paying up to 3 per cent in fees
• Businesses are allowed to pass on surcharges to customers to cover merchant fees, but the amount cannot exceed the fee amount
• So, even though cash might be inconvenient or old-fashioned, it's a better option for both you and local businesses in terms of maintaining the value of your money

Given this information, members, it's no wonder why many recommend starting to pay for products in cash if you can. By paying with cash, you can avoid unnecessary surcharges, and keep more money in your own pocket!

What are your thoughts, folks? Do you regularly pay for your everyday purchases with cash?

A very misleading story, as the $50 will still be worth $50 after 30 transactions. It's just that the 30 retailers will have had up to $45 in total skimmed off their profits, if they are foolish enough to accept credit cards that charge 3% for each transaction.

 

[Wen46]

I have a no annual fee credit card. I pay cash if the amount is to be rounded down, but pay by card if it is to be rounded up. It may only be a cent or two but it all helps and adds up over time.

 

[John Kinsey]

In an age where it has become easier to pay for goods and services with debit and credit cards, it can be difficult to remember the good old days when cash was king.

But there’s a good reason why opting for coins and notes over online payments is still popular.

Recently, Fiona Edmunds, a mother-of-three from Brisbane, revealed how physical money will retain its value.

In a Facebook post that has quickly made the rounds on social media, Ms Edmunds illustrated the hidden cost of using a bank card.

A mum-of-three from Brisbane gave an elegantly simple explanation for why paying with cash is better than using a credit card. Credit: Shutterstock.

'I have a $50 banknote in my pocket and I go to a restaurant and pay for dinner with it,' she explains.

'The restaurant owner then uses the bill to pay for their laundry. The laundry owner then uses the bill to pay the barber. After an unlimited number of payments, it will still remain at a $50 value which has fulfilled its purpose to everyone who used it for payment.'

However, if you pay with a card, the amount paid will gradually diminish in value because part of it will be eaten away by fees.

'BUT if I come to a restaurant and pay digitally via card, the bank fees for my payment charged to the seller could be up to 3 per cent or $1.50,' she continued.

Ms Edmunds claimed that up to 3 per cent of payment can be charged to the seller by banks, and added that this percentage will be imposed on every other transaction paid with the same card.

'Therefore after 30 transactions, the initial $50 will exist at only $5 and the remaining $45 has become the property of the bank,' she explains.

It should be noted, however, that this simplified example does not give the full picture, and the fees charged by banks for credit card transactions vary widely.

Regardless, the principle that Ms Edmunds is getting at is accurate: In the long run, banks and credit card companies will generally take a portion of your money every time you make a transaction that inevitably becomes theirs over time.

'Use it or lose it folks... cash is king,' she finished.

Meanwhile, the Reserve Bank of Australia confirmed that while there's truth to what the mum claimed, the average cost for certain businesses to use banks' or credit card companies' payment services has decreased.

'However, consumers are making more payments with cards than ever before, which is raising total payment costs for merchants,' the RBA remarked.

It's also worth noting that smaller businesses face considerably higher card payment costs for each and every transaction than larger businesses.

This means that in some cases, merchants may pass on a surcharge to the customer in order to cover the cost of payment.

Here are a few examples of the fees a merchant might pay depending on the type of card they accept:

Eftpos: Less than 0.5 per cent
Visa and Mastercard debit: Between 0.5-1 per cent
Visa and Mastercard credit: Between 1-1.5 per cent
American Express: Between 1.5-2 per cent

Key Takeaways

• Using cash over cards is more beneficial to you and the community because banks and credit card companies will take a cut from each transaction
• Businesses, especially smaller businesses, suffer more from high card payment costs, with merchants paying up to 3 per cent in fees
• Businesses are allowed to pass on surcharges to customers to cover merchant fees, but the amount cannot exceed the fee amount
• So, even though cash might be inconvenient or old-fashioned, it's a better option for both you and local businesses in terms of maintaining the value of your money

Given this information, members, it's no wonder why many recommend starting to pay for products in cash if you can. By paying with cash, you can avoid unnecessary surcharges, and keep more money in your own pocket!

What are your thoughts, folks? Do you regularly pay for your everyday purchases with cash?

Try to find a Bank or an ATM to pick up bank notes

 

[Cheezil]

Exactly cash is cash debit cards always someone is take a little of the top all the time inthe end all we are doing is filling the pockets of shareholders and banks and institutions never opt for a cashless society because you will be paying fees until you die then there will be fee's on your funeral costs that the family have to pay for don't become a sheep

Spot on, someone else always wants the easy ride/take our hard earned money-legalized robbery & it stinks!

 

[Colleen M]

In an age where it has become easier to pay for goods and services with debit and credit cards, it can be difficult to remember the good old days when cash was king.

But there’s a good reason why opting for coins and notes over online payments is still popular.

Recently, Fiona Edmunds, a mother-of-three from Brisbane, revealed how physical money will retain its value.

In a Facebook post that has quickly made the rounds on social media, Ms Edmunds illustrated the hidden cost of using a bank card.

A mum-of-three from Brisbane gave an elegantly simple explanation for why paying with cash is better than using a credit card. Credit: Shutterstock.

'I have a $50 banknote in my pocket and I go to a restaurant and pay for dinner with it,' she explains.

'The restaurant owner then uses the bill to pay for their laundry. The laundry owner then uses the bill to pay the barber. After an unlimited number of payments, it will still remain at a $50 value which has fulfilled its purpose to everyone who used it for payment.'

However, if you pay with a card, the amount paid will gradually diminish in value because part of it will be eaten away by fees.

'BUT if I come to a restaurant and pay digitally via card, the bank fees for my payment charged to the seller could be up to 3 per cent or $1.50,' she continued.

Ms Edmunds claimed that up to 3 per cent of payment can be charged to the seller by banks, and added that this percentage will be imposed on every other transaction paid with the same card.

'Therefore after 30 transactions, the initial $50 will exist at only $5 and the remaining $45 has become the property of the bank,' she explains.

It should be noted, however, that this simplified example does not give the full picture, and the fees charged by banks for credit card transactions vary widely.

Regardless, the principle that Ms Edmunds is getting at is accurate: In the long run, banks and credit card companies will generally take a portion of your money every time you make a transaction that inevitably becomes theirs over time.

'Use it or lose it folks... cash is king,' she finished.

Meanwhile, the Reserve Bank of Australia confirmed that while there's truth to what the mum claimed, the average cost for certain businesses to use banks' or credit card companies' payment services has decreased.

'However, consumers are making more payments with cards than ever before, which is raising total payment costs for merchants,' the RBA remarked.

It's also worth noting that smaller businesses face considerably higher card payment costs for each and every transaction than larger businesses.

This means that in some cases, merchants may pass on a surcharge to the customer in order to cover the cost of payment.

Here are a few examples of the fees a merchant might pay depending on the type of card they accept:

Eftpos: Less than 0.5 per cent
Visa and Mastercard debit: Between 0.5-1 per cent
Visa and Mastercard credit: Between 1-1.5 per cent
American Express: Between 1.5-2 per cent

Key Takeaways

• Using cash over cards is more beneficial to you and the community because banks and credit card companies will take a cut from each transaction
• Businesses, especially smaller businesses, suffer more from high card payment costs, with merchants paying up to 3 per cent in fees
• Businesses are allowed to pass on surcharges to customers to cover merchant fees, but the amount cannot exceed the fee amount
• So, even though cash might be inconvenient or old-fashioned, it's a better option for both you and local businesses in terms of maintaining the value of your money

Given this information, members, it's no wonder why many recommend starting to pay for products in cash if you can. By paying with cash, you can avoid unnecessary surcharges, and keep more money in your own pocket!

What are your thoughts, folks? Do you regularly pay for your everyday purchases with cash?

 

[Luckyus]

Cash encourages tax avoidance, especially with tradies and fruit shops. They simply understate their earnings and pay less tax.

That's between them and the ATO?

 

[Colleen M]

These bank fees are considered as an operating cost and are claimable as such within a business tax return/report. Same as interest on business loans!

 

[Joy Beale]

II posted this

In an age where it has become easier to pay for goods and services with debit and credit cards, it can be difficult to remember the good old days when cash was king.

But there’s a good reason why opting for coins and notes over online payments is still popular.

Recently, Fiona Edmunds, a mother-of-three from Brisbane, revealed how physical money will retain its value.

In a Facebook post that has quickly made the rounds on social media, Ms Edmunds illustrated the hidden cost of using a bank card.

A mum-of-three from Brisbane gave an elegantly simple explanation for why paying with cash is better than using a credit card. Credit: Shutterstock.

'I have a $50 banknote in my pocket and I go to a restaurant and pay for dinner with it,' she explains.

'The restaurant owner then uses the bill to pay for their laundry. The laundry owner then uses the bill to pay the barber. After an unlimited number of payments, it will still remain at a $50 value which has fulfilled its purpose to everyone who used it for payment.'

However, if you pay with a card, the amount paid will gradually diminish in value because part of it will be eaten away by fees.

'BUT if I come to a restaurant and pay digitally via card, the bank fees for my payment charged to the seller could be up to 3 per cent or $1.50,' she continued.

Ms Edmunds claimed that up to 3 per cent of payment can be charged to the seller by banks, and added that this percentage will be imposed on every other transaction paid with the same card.

'Therefore after 30 transactions, the initial $50 will exist at only $5 and the remaining $45 has become the property of the bank,' she explains.

It should be noted, however, that this simplified example does not give the full picture, and the fees charged by banks for credit card transactions vary widely.

Regardless, the principle that Ms Edmunds is getting at is accurate: In the long run, banks and credit card companies will generally take a portion of your money every time you make a transaction that inevitably becomes theirs over time.

'Use it or lose it folks... cash is king,' she finished.

Meanwhile, the Reserve Bank of Australia confirmed that while there's truth to what the mum claimed, the average cost for certain businesses to use banks' or credit card companies' payment services has decreased.

'However, consumers are making more payments with cards than ever before, which is raising total payment costs for merchants,' the RBA remarked.

It's also worth noting that smaller businesses face considerably higher card payment costs for each and every transaction than larger businesses.

This means that in some cases, merchants may pass on a surcharge to the customer in order to cover the cost of payment.

Here are a few examples of the fees a merchant might pay depending on the type of card they accept:

Eftpos: Less than 0.5 per cent
Visa and Mastercard debit: Between 0.5-1 per cent
Visa and Mastercard credit: Between 1-1.5 per cent
American Express: Between 1.5-2 per cent

Key Takeaways

• Using cash over cards is more beneficial to you and the community because banks and credit card companies will take a cut from each transaction
• Businesses, especially smaller businesses, suffer more from high card payment costs, with merchants paying up to 3 per cent in fees
• Businesses are allowed to pass on surcharges to customers to cover merchant fees, but the amount cannot exceed the fee amount
• So, even though cash might be inconvenient or old-fashioned, it's a better option for both you and local businesses in terms of maintaining the value of your money

Given this information, members, it's no wonder why many recommend starting to pay for products in cash if you can. By paying with cash, you can avoid unnecessary surcharges, and keep more money in your own pocket!

What are your thoughts, folks? Do you regularly pay for your everyday purchases with cash?

very same article on FB about a week ago. I got a lot of response, mainly that so many businesses now refuse to take cash...I did reply that cash was still a legal tender and by refusing to take a payment in cash is against the law...one person said that quite a few Government Departments ( local Gov) have a no cash policy...I live in North Queensland. What is the solution if a business refuses cash ( apart from taking your custom somewhere else...how then do you pay your rates to the Council...Joy B

 

[Tata]

Why do shop owners charge extra for using cards at all? It is much less trouble to handle digital money than banknotes and coins.

 

[Ricci]

Each to their own, personally I only use my card, call it selfish if you want but I'm a firm believer of leaving my own money in the bank as long as possible to accrue as much interest as possible. I then pay it off once a month so I don't get any charges from the bank. That way I haven't had to pay anything for my accounts for years. That the stores I shop at don't in the main add a fee for using a card is a bonus even though probably the fees are reflected in the cost of an item.

 

[StephenNikita]

In an age where it has become easier to pay for goods and services with debit and credit cards, it can be difficult to remember the good old days when cash was king.

But there’s a good reason why opting for coins and notes over online payments is still popular.

Recently, Fiona Edmunds, a mother-of-three from Brisbane, revealed how physical money will retain its value.

In a Facebook post that has quickly made the rounds on social media, Ms Edmunds illustrated the hidden cost of using a bank card.

A mum-of-three from Brisbane gave an elegantly simple explanation for why paying with cash is better than using a credit card. Credit: Shutterstock.

'I have a $50 banknote in my pocket and I go to a restaurant and pay for dinner with it,' she explains.

'The restaurant owner then uses the bill to pay for their laundry. The laundry owner then uses the bill to pay the barber. After an unlimited number of payments, it will still remain at a $50 value which has fulfilled its purpose to everyone who used it for payment.'

However, if you pay with a card, the amount paid will gradually diminish in value because part of it will be eaten away by fees.

'BUT if I come to a restaurant and pay digitally via card, the bank fees for my payment charged to the seller could be up to 3 per cent or $1.50,' she continued.

Ms Edmunds claimed that up to 3 per cent of payment can be charged to the seller by banks, and added that this percentage will be imposed on every other transaction paid with the same card.

'Therefore after 30 transactions, the initial $50 will exist at only $5 and the remaining $45 has become the property of the bank,' she explains.

It should be noted, however, that this simplified example does not give the full picture, and the fees charged by banks for credit card transactions vary widely.

Regardless, the principle that Ms Edmunds is getting at is accurate: In the long run, banks and credit card companies will generally take a portion of your money every time you make a transaction that inevitably becomes theirs over time.

'Use it or lose it folks... cash is king,' she finished.

Meanwhile, the Reserve Bank of Australia confirmed that while there's truth to what the mum claimed, the average cost for certain businesses to use banks' or credit card companies' payment services has decreased.

'However, consumers are making more payments with cards than ever before, which is raising total payment costs for merchants,' the RBA remarked.

It's also worth noting that smaller businesses face considerably higher card payment costs for each and every transaction than larger businesses.

This means that in some cases, merchants may pass on a surcharge to the customer in order to cover the cost of payment.

Here are a few examples of the fees a merchant might pay depending on the type of card they accept:

Eftpos: Less than 0.5 per cent
Visa and Mastercard debit: Between 0.5-1 per cent
Visa and Mastercard credit: Between 1-1.5 per cent
American Express: Between 1.5-2 per cent

Key Takeaways

• Using cash over cards is more beneficial to you and the community because banks and credit card companies will take a cut from each transaction
• Businesses, especially smaller businesses, suffer more from high card payment costs, with merchants paying up to 3 per cent in fees
• Businesses are allowed to pass on surcharges to customers to cover merchant fees, but the amount cannot exceed the fee amount
• So, even though cash might be inconvenient or old-fashioned, it's a better option for both you and local businesses in terms of maintaining the value of your money

Given this information, members, it's no wonder why many recommend starting to pay for products in cash if you can. By paying with cash, you can avoid unnecessary surcharges, and keep more money in your own pocket!

What are your thoughts, folks? Do you regularly pay for your everyday purchases with cash?

I’ve posted this on Facebook many times. It’s true start paying with cash or lose it. Then the bank will get richer and richer. If they do get into trouble the government passed a law saying they can take your money out of your account to prop them selves up. Most people don’t know about that one. If war starts get your money out early or lose it.

 

[Dougal]

In an age where it has become easier to pay for goods and services with debit and credit cards, it can be difficult to remember the good old days when cash was king.

But there’s a good reason why opting for coins and notes over online payments is still popular.

Recently, Fiona Edmunds, a mother-of-three from Brisbane, revealed how physical money will retain its value.

In a Facebook post that has quickly made the rounds on social media, Ms Edmunds illustrated the hidden cost of using a bank card.

A mum-of-three from Brisbane gave an elegantly simple explanation for why paying with cash is better than using a credit card. Credit: Shutterstock.

'I have a $50 banknote in my pocket and I go to a restaurant and pay for dinner with it,' she explains.

'The restaurant owner then uses the bill to pay for their laundry. The laundry owner then uses the bill to pay the barber. After an unlimited number of payments, it will still remain at a $50 value which has fulfilled its purpose to everyone who used it for payment.'

However, if you pay with a card, the amount paid will gradually diminish in value because part of it will be eaten away by fees.

'BUT if I come to a restaurant and pay digitally via card, the bank fees for my payment charged to the seller could be up to 3 per cent or $1.50,' she continued.

Ms Edmunds claimed that up to 3 per cent of payment can be charged to the seller by banks, and added that this percentage will be imposed on every other transaction paid with the same card.

'Therefore after 30 transactions, the initial $50 will exist at only $5 and the remaining $45 has become the property of the bank,' she explains.

It should be noted, however, that this simplified example does not give the full picture, and the fees charged by banks for credit card transactions vary widely.

Regardless, the principle that Ms Edmunds is getting at is accurate: In the long run, banks and credit card companies will generally take a portion of your money every time you make a transaction that inevitably becomes theirs over time.

'Use it or lose it folks... cash is king,' she finished.

Meanwhile, the Reserve Bank of Australia confirmed that while there's truth to what the mum claimed, the average cost for certain businesses to use banks' or credit card companies' payment services has decreased.

'However, consumers are making more payments with cards than ever before, which is raising total payment costs for merchants,' the RBA remarked.

It's also worth noting that smaller businesses face considerably higher card payment costs for each and every transaction than larger businesses.

This means that in some cases, merchants may pass on a surcharge to the customer in order to cover the cost of payment.

Here are a few examples of the fees a merchant might pay depending on the type of card they accept:

Eftpos: Less than 0.5 per cent
Visa and Mastercard debit: Between 0.5-1 per cent
Visa and Mastercard credit: Between 1-1.5 per cent
American Express: Between 1.5-2 per cent

Key Takeaways

• Using cash over cards is more beneficial to you and the community because banks and credit card companies will take a cut from each transaction
• Businesses, especially smaller businesses, suffer more from high card payment costs, with merchants paying up to 3 per cent in fees
• Businesses are allowed to pass on surcharges to customers to cover merchant fees, but the amount cannot exceed the fee amount
• So, even though cash might be inconvenient or old-fashioned, it's a better option for both you and local businesses in terms of maintaining the value of your money

Given this information, members, it's no wonder why many recommend starting to pay for products in cash if you can. By paying with cash, you can avoid unnecessary surcharges, and keep more money in your own pocket!

What are your thoughts, folks? Do you regularly pay for your everyday purchases with cash?

I must be living on a different planet; in the past 50 or so years I have not paid a single cent in additional transaction fees on my 4 credit cards.

 

[Luckyus]

In an age where it has become easier to pay for goods and services with debit and credit cards, it can be difficult to remember the good old days when cash was king.

But there’s a good reason why opting for coins and notes over online payments is still popular.

Recently, Fiona Edmunds, a mother-of-three from Brisbane, revealed how physical money will retain its value.

In a Facebook post that has quickly made the rounds on social media, Ms Edmunds illustrated the hidden cost of using a bank card.

A mum-of-three from Brisbane gave an elegantly simple explanation for why paying with cash is better than using a credit card. Credit: Shutterstock.

'I have a $50 banknote in my pocket and I go to a restaurant and pay for dinner with it,' she explains.

'The restaurant owner then uses the bill to pay for their laundry. The laundry owner then uses the bill to pay the barber. After an unlimited number of payments, it will still remain at a $50 value which has fulfilled its purpose to everyone who used it for payment.'

However, if you pay with a card, the amount paid will gradually diminish in value because part of it will be eaten away by fees.

'BUT if I come to a restaurant and pay digitally via card, the bank fees for my payment charged to the seller could be up to 3 per cent or $1.50,' she continued.

Ms Edmunds claimed that up to 3 per cent of payment can be charged to the seller by banks, and added that this percentage will be imposed on every other transaction paid with the same card.

'Therefore after 30 transactions, the initial $50 will exist at only $5 and the remaining $45 has become the property of the bank,' she explains.

It should be noted, however, that this simplified example does not give the full picture, and the fees charged by banks for credit card transactions vary widely.

Regardless, the principle that Ms Edmunds is getting at is accurate: In the long run, banks and credit card companies will generally take a portion of your money every time you make a transaction that inevitably becomes theirs over time.

'Use it or lose it folks... cash is king,' she finished.

Meanwhile, the Reserve Bank of Australia confirmed that while there's truth to what the mum claimed, the average cost for certain businesses to use banks' or credit card companies' payment services has decreased.

'However, consumers are making more payments with cards than ever before, which is raising total payment costs for merchants,' the RBA remarked.

It's also worth noting that smaller businesses face considerably higher card payment costs for each and every transaction than larger businesses.

This means that in some cases, merchants may pass on a surcharge to the customer in order to cover the cost of payment.

Here are a few examples of the fees a merchant might pay depending on the type of card they accept:

Eftpos: Less than 0.5 per cent
Visa and Mastercard debit: Between 0.5-1 per cent
Visa and Mastercard credit: Between 1-1.5 per cent
American Express: Between 1.5-2 per cent

Key Takeaways

• Using cash over cards is more beneficial to you and the community because banks and credit card companies will take a cut from each transaction
• Businesses, especially smaller businesses, suffer more from high card payment costs, with merchants paying up to 3 per cent in fees
• Businesses are allowed to pass on surcharges to customers to cover merchant fees, but the amount cannot exceed the fee amount
• So, even though cash might be inconvenient or old-fashioned, it's a better option for both you and local businesses in terms of maintaining the value of your money

Given this information, members, it's no wonder why many recommend starting to pay for products in cash if you can. By paying with cash, you can avoid unnecessary surcharges, and keep more money in your own pocket!

What are your thoughts, folks? Do you regularly pay for your everyday purchases with cash?

You see people all the using a card to pay for a bloody coffee, if I do use the card I don't believe in this and go, I want a psychical receipt of my transaction I know they don't like it but bugger them.

 

[Ashmenou]

I'm a cash only person.
I don't buy anything online, so don't need credit.

Same here.

 

[Rjwatto]

In an age where it has become easier to pay for goods and services with debit and credit cards, it can be difficult to remember the good old days when cash was king.

But there’s a good reason why opting for coins and notes over online payments is still popular.

Recently, Fiona Edmunds, a mother-of-three from Brisbane, revealed how physical money will retain its value.

In a Facebook post that has quickly made the rounds on social media, Ms Edmunds illustrated the hidden cost of using a bank card.

A mum-of-three from Brisbane gave an elegantly simple explanation for why paying with cash is better than using a credit card. Credit: Shutterstock.

'I have a $50 banknote in my pocket and I go to a restaurant and pay for dinner with it,' she explains.

'The restaurant owner then uses the bill to pay for their laundry. The laundry owner then uses the bill to pay the barber. After an unlimited number of payments, it will still remain at a $50 value which has fulfilled its purpose to everyone who used it for payment.'

However, if you pay with a card, the amount paid will gradually diminish in value because part of it will be eaten away by fees.

'BUT if I come to a restaurant and pay digitally via card, the bank fees for my payment charged to the seller could be up to 3 per cent or $1.50,' she continued.

Ms Edmunds claimed that up to 3 per cent of payment can be charged to the seller by banks, and added that this percentage will be imposed on every other transaction paid with the same card.

'Therefore after 30 transactions, the initial $50 will exist at only $5 and the remaining $45 has become the property of the bank,' she explains.

It should be noted, however, that this simplified example does not give the full picture, and the fees charged by banks for credit card transactions vary widely.

Regardless, the principle that Ms Edmunds is getting at is accurate: In the long run, banks and credit card companies will generally take a portion of your money every time you make a transaction that inevitably becomes theirs over time.

'Use it or lose it folks... cash is king,' she finished.

Meanwhile, the Reserve Bank of Australia confirmed that while there's truth to what the mum claimed, the average cost for certain businesses to use banks' or credit card companies' payment services has decreased.

'However, consumers are making more payments with cards than ever before, which is raising total payment costs for merchants,' the RBA remarked.

It's also worth noting that smaller businesses face considerably higher card payment costs for each and every transaction than larger businesses.

This means that in some cases, merchants may pass on a surcharge to the customer in order to cover the cost of payment.

Here are a few examples of the fees a merchant might pay depending on the type of card they accept:

Eftpos: Less than 0.5 per cent
Visa and Mastercard debit: Between 0.5-1 per cent
Visa and Mastercard credit: Between 1-1.5 per cent
American Express: Between 1.5-2 per cent

Key Takeaways

• Using cash over cards is more beneficial to you and the community because banks and credit card companies will take a cut from each transaction
• Businesses, especially smaller businesses, suffer more from high card payment costs, with merchants paying up to 3 per cent in fees
• Businesses are allowed to pass on surcharges to customers to cover merchant fees, but the amount cannot exceed the fee amount
• So, even though cash might be inconvenient or old-fashioned, it's a better option for both you and local businesses in terms of maintaining the value of your money

Given this information, members, it's no wonder why many recommend starting to pay for products in cash if you can. By paying with cash, you can avoid unnecessary surcharges, and keep more money in your own pocket!

What are your thoughts, folks? Do you regularly pay for your everyday purchases with cash?

Governments and banks want a cashless society this way they will be able to track you know your finances and be able to track you like big brother

 

[Luckyus]

Governments and banks want a cashless society this way they will be able to track you know your finances and be able to track you like big brother

Governments and banks want a cashless society this way they will be able to track you know your finances and be able to track you like big brother

I must admit that I used to a have a card, however, I would only if I could use it in a Credit free situation and if I could make extra payments. I didn't mind the $2.50 monthly fee as I wouldn't think of buying anything unless I had the money to buy it, as I say I didn't the then small handling fee, as I would rather use their money than mine, as long as you paid it off quickly you paid buggerall in fees.

 

[riskydave]

Cash encourages tax avoidance, especially with tradies and fruit shops. They simply understate their earnings and pay less tax.

Well then the Government should not be ripping them off with so much tax, years ago it was a fair system and people were happy to pay a bit of tax as they could see the pothole up the road being fixed, now days all they see is Government people driving around in BMW SUV's(and this is whether the government is in power or not) and flying over seas and sending our money over seas instead of helping people in our own country, no wonder we don't want to fork over more and more and more tax. Have a good overall look at Australia, it's a mess.

 

[kevinabraham]

A way to avoid these fees is by using cash or a debit card instead of a credit card. This way, you're only spending what you have in your account and you're not incurring any interest charges.
Another way to avoid these fees is by checking your credit card status online and looking for cards that don't charge additional fees for card payments. Some credit card companies offer special rewards or cashback for using their card at certain merchants.
You can also ask the merchant if they charge extra fees for card payments and if they offer any discounts or deals for cash or debit card payments.