What hap­pened was, I was walk­ing through a train sta­tion on the way to work with the buds play­ing ran­dom­ly on shuf­fle and a knifeblade of Real Mu­sic came in from out­side so I had to pull them out of my ears, there was this young dude get­ting great elec­tric sound out of a tee­ny amp do­ing a slow take on Lit­tle Wing with a re­al­ly good voice: When I’m sad, she comes to me… plen­ty room be­tween the notes and lots of soul in them. He looked a lit­tle hard-pressed; I put my hand in my pock­et for some coin but there was no coin there be­cause I live on plas­tic these days and that busker went un­paid that morn­ing. Another rea­son for a thing I’m think­ing of: Go­ing back to cash.

Used to be I had to hit the bank most weeks to ar­range brass-in-pocket, but no longer. [Dear read­er: The fol­low­ing is for Amer­i­can­s, who are a lit­tle be­hind on this stuff.] For a while now, al­most any­where I want to buy what­ev­er for less than $100, I just tap the pay­ma­chine with my cred­it card. No PIN no wait­ing no fuss no muss. And more re­cent­ly, be­cause who wants to dig around in their pock­et for their cred­it card like a filthy sav­age, I can just hold my phone up to the ma­chine be­cause of course I’m al­ready hold­ing it like you’re hold­ing yours most­ly, and Some­thing Some­thing Pay makes this ec­stat­ic lit­tle In­ter­net Chim­ing Sound to let me know that I can take my lat­te or jeans or flow­ers or beers and say “Thanks, have a good one” and walk away, that re­la­tion­ship is over.

So, why should I both­er deal­ing with cash?

  1. Rout­ing ev­ery­thing through my cred­it card is feed­ing the glob­al pay­ments cartel, who ex­tract a tar­iff mea­sured in freak­ing dol­lars for al­most ev­ery rou­tine trans­ac­tion. I’ve seen so many great busi­ness plans go beg­ging be­cause they could have done some­thing won­der­ful in the world if you could on­ly do mi­cro­pay­ments, which you can’t, did I men­tion that car­tel that ba­si­cal­ly has it locked up and tied down?

  2. Ob­vi­ous­ly when you pay for ev­ery­thing with plas­tic (even if it’s your mo­bile pre­tend­ing to be plas­tic) then The Man Knows Who You Are And What You’re Buy­ing. Wel­l, The Man al­so knows where any­one who car­ries a mo­bile phone around (which means ev­ery­one) is all the time, but let’s not let the per­fect be the en­e­my of the good. I mean, right now I do a sin­gle Ama­zon search for Res­o­nant Cav­i­ty Ex­trac­tors and the freak­ing cav­i­ty ex­trac­tors fol­low me around the In­ter­net for week­s; I’m pret­ty sure the Big Vi­sion guys in the pay­ments car­tel have this no­tion where af­ter I fill That Pre­scrip­tion at the lo­cal drug­store, I’m gonna get per­va­sive pop­ups for [S­top right there, Tim -Ed.]

  3. There’s no good way to lay a cou­ple bucks on the busker play­ing Lit­tle Wing.

I haven’t got this worked out along Microeconomics-theory lines, but I’m start­ing to hear an in­ter­nal voice say­ing “Cash is good.” So I think I’m go­ing to start drop­ping by the ATM more of­ten, and mak­ing a clink­ing sound when I walk. And lay­ing a few bucks on busker­s, be­cause if no­body does that there won’t be any.



Contributions

Comment feed for ongoing:Comments feed

From: Norman Walsh (Oct 12 2018, at 05:55)

Maybe we're finally catching on down here south of the border. I got a routine card replacement for a Visa card a couple of weeks ago and the new card includes the contactless feature. Not that I've tried it yet.

I've used my phone for payments a couple of times though.

And I try to always have cash in my pocket, "just in case."

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From: Pat (Oct 12 2018, at 07:47)

I too prefer to keep cash on me for dealing with buskers, panhandlers, and small merchants.

I used to be all cash all the time until I read a nice economics papers on how that's a net loss transfer to card users because the credit card fee is priced in and card users pay the same price + get a reward.

But not everyone needs to be a perfect little economic rational thought robot and giving money to buskers is good.

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From: Peter Phillips (Oct 12 2018, at 09:36)

An FYI, the hrefs for the previous two comments came out a bit strange with an extra http:// in from of the https://, e.g. :

Norman Walsh

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From: Sophie (Oct 12 2018, at 10:18)

As for buskers, London has started helping them get contactless payments: https://www.criticalhit.net/technology/city-london-launches-electronic-payment-system-make-life-easier-buskers/

I agree with your views on cash, in my country contactless payments are taxed even more heavily than regular card payments by the cartels. So cash is a good idea. I also just don’t buy things.

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From: Pete Forman (Oct 12 2018, at 12:35)

London has started rolling out cashless payments for buskers.

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From: mark (Oct 12 2018, at 13:43)

Been CC# free since the 90's and have to say it's quite liberating to see the look on sales clerks faces when paying with cash. Two industries are forcing me to get a credit card though, (I want to travel outside this country), and both are somewhat related to Canada's Constitution in that we have a right to travel, at least domestically. It is very difficult to rent a car or buy an airplane ticket with cash, afaik trains and the bus (Greyhound is leaving tho') still accept physical money for a ticket to ride.

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From: Michael (Oct 13 2018, at 18:06)

Another reason to favor cash is that it has the least overhead charges. This may not matter when one is making a good income.

But if you're retiring, transitioning to a fixed income, you might not be able to afford the continuing infrastructure participation costs of, for example, ApplePay. Cost of an iPhone + monthly carrier charge + iWatch (if you're really into the e-pay ecosystem).

My ATT plan costs me ~$100/month, or ~$1,200/year. iPhone cost in addition - figure $300/year (replacing a phone every 3.5 years). My SSI income will be about $28K/year. So $1500/28000 ~ 5% of my annual income just for the convenience of paying electronically. No thanks.

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From: A (Oct 13 2018, at 21:20)

Please also read "In Praise of Cash" on Aeon.co. On payments, cash is how we (and future generations) can retain the freedom we still have.

Link to the article:

https://aeon.co/essays/if-plastic-replaces-cash-much-that-is-good-will-be-lost

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From: Guy (Oct 14 2018, at 00:12)

Not 100% about this but I thought a lot of businesses (in the UK at least) have to pay a charge to deposit coins/cash at a bank. Obviously not all cash is deposited, but if you are not depositing most of it then you must be going under pretty fast!

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From: J. King (Oct 14 2018, at 05:53)

I always pay cash when purchasing something in person, unless that something costs more than a hundred dollars or so and I haven't planned ahead. This is probably due more to my many years of not having a credit card as a youth than to any conscious thought, though.

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From: len (Oct 14 2018, at 16:35)

Cash. Pretty much most of my life with the exception of bits like hotels and some meals. Way south of the border.

It's the concept of busking that's wrong. Better to have a warm room and decent light when it gets cold and not to have to inhale carbon monoxide when warm. Reducing musicians to beggars has benefited room owners and the rise of the curators who have no skills, no taste and should not be the arbiters of what is best for the listeners.

I've watched the degrading of both music and the artists for too long now to go along with it.

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From: Rob (Oct 14 2018, at 20:49)

Its interesting, hereabouts cash is rapidly becoming the preserve of the lumpenproletariat. Basically the people who carry it are the old, the poor, the addicted, and the criminal, or some combo of the four. Casinos and shady contractors and other tax-shy folks.

Law enforcement pretty much regards the possession of large (and not so large, "large" depends on point of view & context) amounts of cash as probable cause. On the street, having some nice new $50s (I'm not sure I've ever seen an old worn one) is an indicator you've been to a "payday" loan-shark or a pawnshop-- it can be difficult to break 50s in small stores, except in immigrant neighbourhoods; even drug dealers are often reluctant to take pinks. Let alone browns ($50s & $100s, for non-Canadians).

On the street, for anyone aspirational, pre-paid credit cards are popular. They look "normal," make YOU look normal. Paying for things with cash is basically inherently louche these days.

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From: Tim (but not THE Tim) (Oct 14 2018, at 21:34)

one other point. My dad had a saying (which may be less true now than it was then): "Cash will buy you ID, but ID will not get you cash". He always had cash in his pocket. Some days quite a lot as he tended to pay some suppliers of materials such as fiberglass (he did car work and built some custom things) in cash

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From: Simon Wright (Nov 01 2018, at 01:46)

A couple of years ago a small cafe in Painswick, UK wouldn't accept cash; the insurance costs for a business with cash on premises made it impractical.

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