Why Paying with Cash is better

To use cash or to use credit? That seems to be the question that millions of people living around the world ask themselves. There are pros and cons to using cash, and there are pros and cons to using credit. Using a credit card to make purchases can be helpful to you if you are purchasing products or paying for services that you suspect you need to show a record for. An example of this is if you have a home-based business and you need to make online purchases, a credit card is ideal for making your purchases because you will have a record of the purchase on your credit card statement. Cash, on the other hand, is ideal for when you want to pay for your purchases and be on your way without sweating with worry that your card will decline.

It is always good to have cash on hand, especially because you don’t know whether or not a business you are spending at will accept other forms of payment. Most businesses accept cash because it is a pure form of payment; there is no need to worry about fraudulent credit cards being used, and the payment is immediate. Credit card payments must be processed by a computer and then transferred to a business’ bank account. Cash can immediately be accepted and the payment is done without having to worry about the funds potentially being disputed like there could be with credit card transactions. Paying with cash is also good for you as a consumer because you know exactly how much money you have available for spending; there is no temptation to spend more money than you actually have.

Some businesses will offer special savings to customers who pay with cash instead of using credit or debit cards. A mom and pop shop or your self-employed mechanic might not charge you the tax amount if you decide to pay with cash instead of using plastic. Businesses that offer savings to customers who choose to pay cash do so because cash is not traceable the way that electronic transactions are, meaning that the businesses can pocket the money and don’t have to claim it as earned income to the government if they don’t want to. Many merchants favor customers who pay cash because the merchants don’t have to pay expensive transaction fees that card companies charge. Credit and debit card companies charge businesses a fee for every electronic transaction that is processed by the merchant, and this is another reason why merchants are willing to offer discounts to customers who pay cash.

Paying with cash helps people to manage and stay on top of their budgets and expenses. There are no surprises at the end of the month, and the purchases are done with peace of mind; no need to fret over a looming credit card billing coming in at the end of the month. Sometimes, however, there are times when using a credit card is necessary to get the products and services that you are interested it. It is difficult to order items on the Internet without a credit card. Pre-paid credit cards are good options for people who want to use a card with a major credit card company’s insignia on it for online purchases. Consumers with prepaid credit cards can load cash onto the credit card and use it at places where only credit cards are accepted. Paying with a prepaid credit card is pretty much like paying with cash because you can only spend the cash amount on the card that you have pre-paid for. Paying with cash is a constant reminder that you should refrain from spending money that you don’t have.