Credit, Debit, or Cash

[Tom52]

We mostly use a credit card and pay off balance monthly. We don't have a debit card. We rarely use cash but have some on hand just in case. We still have to write quite a few checks. More and more businesses are starting to add percentages for using a credit card.

We are also starting to see a few places that are cashless. I don't like this selectivity. I believe cash should always be accepted.

 

[Closet_Gamer]

90% goes on a single CC. Another 9% is ACH. <1% cash.

 

[FIYes]

Sounds like I’m in the majority here….mostly use credit cards, occasionally cash, and never debit cards. I do think the trend toward imposing fees may change that some. However, the benefits of using credit cards are many.

 

[razztazz]

Debit Card -- Routine stuff I'd buy at Target/Aldi/Walmart/supermarket, things I'm not going to return. I bought it. The end. Get it off the books. Just like cash.

Credit Card -- Anything online. Anything I might have to take back. Anything at a new store I haven't shopped at before. Gas stations.

Checks --- One-off things. e.g. Some charitable giving. (Some of these places want me to fill out a page of info if I try to give online.) Some workers who do work around the house. Increasingly, this is going "all-card." I usually use the credit card but if it's a regular company I've used before I'll clear the books and use the debit card.

Other one-offs ---- e.g. Cigars or something, I'll use PayPal online.

Cash --- The guy who mows the lawn and de-snows the driveway likes cash.

I see some people mention tips. I don't eat out but if I had to tip somebody I'd like to do it with cash.

 

[The Cosmic Avenger]

Oh, if I see a fee and it's OVER my cash back by more than half a percent or so, I'll try to use cash, but if it's a wash, I'll probably use my card for the convenience. And I've also paid by check or cash when having work done on the house and gotten a discount equal to or even over my 2% CC cash back.

 

[audreyh1]

Most banks, FCUs offer a way to lock a debit card online these days. I use them so rarely I leave them locked. Pretty much just for international ATM access. Otherwise I don’t seem to need cash these days.

 

[Kings over Queens]

Lately I see more places adding a fee for using a credit card. That changes the way I’m thinking about this. Has this trend changed your credit card usage? In the past, it was a nobrainer to use the credit card and reap the rewards.

I have also seen this happening. either a fee for using a cc or a discount for using cash. depending on the size of the fee/discount this would effect whether i use a cc or pay with cash.

I've noticed that too and it causes me to reevaluate the transaction. More math.

By and large our spending is Credit Card first, then a check or eft, then cash. Don't have a debit card.

I found a new mechanic who claims to offer a 3% discount for cash, which is nonsense, because the cash price is the going rate similar to the dealer service department. Repairs on the stupid car are expensive and I'm contemplating the relationship going forward.

 

[Stormy Kromer]

Mostly CC. Less and less cash. I try to set up monthly bills on EFT from the checking account, or pay from the checking account over the phone.


While travelling I like to have all three options available. I did learn the hard way that you can't rely on cash in airports anymore. You need a smartphone and credit card to order a cheeseburger at some of them.

I always carrry a good supply of cash in small bills for tipping and small purchases. Its also handy to have cash on hand in case the card machine is down or your CC isn't accepted. I've had that happen in foreign countries. I've also been in some smaller towns and stores that don't accept cards and don't like checks.

 

[Tadpole]

Debit - never
Cash - almost never
CC - almost always

 

[ShokWaveRider]

Credit, almost 100% of the time. Read too many sob stories about debit cards, other than that I do not see the point of them unless one is not able to get a substantial credit card.

 

[athena53]

I prefer credit cards for the rewards and the convenience, and pay in full every month. Exceptions:

Very small businesses, although I do put major dental work on the credit card.

Those that have a surcharge for credit cards or a discount for cash that wipe out the reward value.

Utility bills since most have a surcharge for credit cards. I use the bank's on-line bill pay but make an exception this time of year for natural gas; they don't impose a surcharge and the bill is pretty high during heating season.

Cash for very small purchases (under $10) and tips to housekeeping in hotels.

Debit card is for withdrawals only.

 

[rk911]

How do you pay for purchases? Credit, debit or cash? I have mostly used credit cards for the past several years. While I pay for a few things with cash (my hairdresser) I mostly use credit cards. I use credit cards for the rewards and during COVID I used credit cards as a contactless way of paying. Of course, I pay off the balance each month. The card is a convenience for me.

I don’t have a debit card. I occasionally get a notice from my bank and credit union that I’m eligible for a debit card. I do have an atm card for the bank. I just don’t like the lack of protection of the debit card compared to the credit card.

Lately I see more places adding a fee for using a credit card. That changes the way I’m thinking about this. Has this trend changed your credit card usage? In the past, it was a nobrainer to use the credit card and reap the rewards.

All on-line and in-person retail purchases are via CC. The exception is a debit card when my wife "encourages" me (under promise of bodily harm. ) to do a Costco run. The only other debit card use is the rent on our storage lot for our MH. Cash is for the barber and for tips. Checks for some others...landscape maintenance, housekeeper, home repairs & maintenance, snow removal, etc. We carry no balances on our CC.

 

[pacergal]

Use all three, with a check thrown in occasionally.

 

[rk911]

Lately I see more places adding a fee for using a credit card. That changes the way I’m thinking about this. Has this trend changed your credit card usage? In the past, it was a no-brainer to use the credit card and reap the rewards...

Not a bit. The CC is a convenience for us and maybe a necessity for the restaurant owner to keep folks employed and the doors open. The CC cash back rewards offsets most if not all of these convenience fees.

 

[Lagniappe]

I have been using more Peer-to-Peer payments lately. In the states it was Venmo and Zelle, but now that I am here in Portugal, there is a network called MB Way. Many vendors will not take credit or debit cards, but you can pay them directly using MB Way, as long as they are in your phone contacts. Every bank in the country participates, and it is transaction free (for both parties) up to a reasonable amount. My hair salon, my favorite churrascaria, my personal trainer, the produce stand for fresh fruits and vegetables are some of my regular purchases using MB Way. In the states I would have used a credit card for almost all of these, but here, MB Way is safer than cash but the vendor receives payment immediately.

 

[rk911]

"...MB Way is safer than cash but the vendor receives payment immediately."

Wouldn't the vendor receive payment immediately with cash? Maybe I'm missing your point.

 

[scrabbler1]

There are 2 diners near me which have very similar prices on their menus. But way down on the bottom of the menu, one says the prices do not reflect a 4% discount if you pay cash. The other one says the prices do not reflect a 4% surcharge if you use your credit card. This makes price comparisons a little tricky because I will use cash at either place.

 

[mebden]

I use CC for 95% of my payments for the reward program and pay it off monthly but will write a check once and a while for work around the house and cash for tips. I never use a debit card.

 

[rk911]

There are 2 diners near me which have very similar prices on their menus. But way down on the bottom of the menu, one says the prices do not reflect a 4% discount if you pay cash. The other one says the prices do not reflect a 4% surcharge if you use your credit card. This makes price comparisons a little tricky because I will use cash at either place.

Then it would seem to boil down to which diner has the better food, better service, better clientele. Maybe one has a better cheeseburger but the other has a better meat loaf plate.

 

[Lemonade]

We write a few checks a year, mostly use CC for rewards.

But a part of me finds it unsettling to see signs (last two different Dr offices) that say CASH or CHECK not accepted. The businesses claim it's more costly to accept cash or checks (people to manage, process; possible theft) but what happened to Legal Tender of the US? And what amount of privacy are we giving up to the CC companies who share our spending data?

Someone on this sight has a signoff 'if it can be used, it can be abused. And if it can be abused, it will be.' and that gives me pause about how much info we're sharing.

Maybe a topic for another thread?

 

[Sunset]

We write a few checks a year, mostly use CC for rewards.

But a part of me finds it unsettling to see signs (last two different Dr offices) that say CASH or CHECK not accepted. The businesses claim it's more costly to accept cash or checks (people to manage, process; possible theft) but what happened to Legal Tender of the US? And what amount of privacy are we giving up to the CC companies who share our spending data?

Someone on this sight has a signoff 'if it can be used, it can be abused. And if it can be abused, it will be.' and that gives me pause about how much info we're sharing.

Maybe a topic for another thread?

The whole argument would be stronger if you weren't talking about a Dr office, as your personal medical information is shared with a huge number of folks in the medical practice and network, plus the insurance company, and whoever the insurance company sells your medical and payment info to for research, etc....

What I spend on 1 of my 8 credit cards is a pretty innocuous view of me, vs my health

 

[SecondAttempt]

I spent about $190 in cash last year, almost all of that gambling in Vegas or the random supermarket lunch.

Everything else is credit card. I have not used a debit card in decades. I use credit card primarily for rewards and pay off every month.

 

[Lagniappe]

"...MB Way is safer than cash but the vendor receives payment immediately."

Wouldn't the vendor receive payment immediately with cash? Maybe I'm missing your point.

I should not respond while watching Netflix. MB Way is safer than cash AND the vendor also receives payment immediately. It is safer for me not to carry cash, or have to go to the ATM in a rush to get cash.

 

[retire48in2018]

We do not use CC

We use -

1 - auto pay for utilities
2 - Bill pay (bank checks) for things like medical, lawn care, etc. require invoice, etc.
3 - PayPal or equivalent for less known entities that require cards
4 - Debit cards for trusted local businesses (have a separate account for those purchases, not main account)
5- cash - yard sales, occasional tips, etc

 

[Lemonade]

The whole argument would be stronger if you weren't talking about a Dr office, as your personal medical information is shared with a huge number of folks in the medical practice and network, plus the insurance company, and whoever the insurance company sells your medical and payment info to for research, etc....

What I spend on 1 of my 8 credit cards is a pretty innocuous view of me, vs my health

You are correct, our personal health info is essentially accessible to anyone. Besides the security breeches from outside, vendors and hospital employees enjoy almost free and complete access.

However, the argument still holds that we reveal an incredible amount about ourselves, willingly, with nearly complete CC usage.