Cash or card – which is better?

credit cards in a jeans pocket

According to the Reserve Bank of Australia (RBA), the use of cash is on the decline (duh?). ATM withdrawals have been steadily falling since 2010, and the introduction of PayPass on EFTPOS cards means that even small payments can be made without the use of cash.

That may sound nice and convenient for those who have a large bank account, but the dangers of a cashless society will affect those on fixed or low incomes more so than their higher earning counterparts. 

I'm reading a book at the moment called How We Decide by Jonah Lehrer, and I've just finished a chapter which discusses how your brain processes the act of paying with cash, and how it deals with credit cards and the often resulting debt they incur.

The short story is, your brain is wired to 'feel' it when you pay for something with cash. Your wallet or purse gets lighter, and there is a definite sense of loss – even though you've gained with your purchase. Well, unless it was an impulse purchase you'll quickly regret, but I digress. The way the brain deals with credit cards, even debit cards, is a totally different monkey. It's more difficult to resist the temptation to buy something – even if you can't afford it – because there's no pyhsical loss in exchange for your gain. You just put it on the card. It's explained very well in the book and if you can find it in your local library or second-hand bookshop I highly recommend picking it up.

Anyway, what's your opinion of a cashless society? Do you prefer to use cash or card when you make purchases? 

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People won't know what hit them. There will be no freedom at all. The politicions, banks and businesses will be able charge what fees and charges they want on the cards and you will have to pay up wether you like it or not. The more I think about it the more I see how we will be affected. Tracing everything you buy. What movies you watch etc. Where you go, what you do. You may think you've lost a lot of freedom already - well that famous singer said - you aint seen nothin' yet.   

Yes we are tracked now on everywhere we go and everything we do and it will get a lot worse -- all this Terrorist talk -- sure there are terrorists BUT it is played up so as they can take more  freedoms away bit by bit

Conspiracy theories. Gotta luv 'em!

If people can not see what is taking place in front of them they need to get their head out off the ground (or else where it might be)

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