The idea of a cashless society is becoming more and more feasible as access to money via cards increases.
Both credit and debit cards allow people to pay for purchases and bills through EFTPOS, on the phone or online almost anywhere in the world.
MasterCard and Visa also give cardholders exclusive entertainment options through Priceless Music and Visa Entertainment respectively, provide emergency services overseas and offer zero liability insurance to protect people’s money.
Cash, on the other hand, can only be used in person, and only when it is in an accepted currency. There are also no exclusive offers or promotions associated with coins and notes.
With so many benefits to using debit cards, it is no wonder that banks issue them with almost all everyday accounts in Australia. So is there any point in keeping cash around?
No matter how much you use your debit cards or even your credit cards, cash definitely does have some pros on its side and there are many reasons to keep a few notes in your wallet, including:
- Paying for items under the minimum EFTPOS amount
- Avoiding high card surcharges
- Paying for your share at a restaurant that will not split bills; and
- One-off charity donations
These situations are just a few of the examples that show how valuable it can be to keep a bit of real money on hand.
Combining Cash And Cards
While some people will swear they only use cards or prefer to keep cash available for everything, using a combination can actually save you money.
One of the best examples is at cafes where a minimum EFTPOS purchase is required.
If someone just wants a basic cappuccino or latte and the minimum on card is $10, they may decide to add in snack or two just so they can pay with card.
On the other hand, having just $5 in change or a note means they do not spend the extra money, saving both their account balance (and probably their waistline) in the process.
In contrast, carrying around enough cash to purchase something like a television is a serious risk, while using a debit card makes it easy.
Some premium options, like the NAB Gold Visa Debit, even offer complimentary purchase protection and extended warranties to give you more peace of mind.
While debit cards often seem like the easiest payment option, exclusively using cards instead of cash can lead to bad spending habits. But keeping both cash and card available as payment options will give you as many different choices as you need in any situation.