Gripe about paying with cash

[snafu]

Joe, I suggest you 1st decide which type of CC is most beneficial to you. We've recently switched to a 'cash back' card that pays a 4% rebate [discount] on 'recurring' charges like cell phone, electric, cable, home and auto insurance; 3% for gas and groceries and 1% on misc.

Using CCs to capture benefits offered are a disaster for individuals who don't control spending and don't pay attention to small details. You need to know Statement Date and Payment Due Date so that the balance is paid in full, on line, on time via the bank's electronic payment system clearing at least two business day in advance. While the Statement Date and Due Date remain pretty consistent, you must ensure you've paid in full before weekends or bank holidays anytime there is a balance pending. Interest rates are too high a penalty on CC.

[creditcardfree]

I did have a unique experience at WalMart the other day though which I guess will become increasingly more common as the technology spreads. I swiped my Marriott Visa and the terminal said "Card must be inserted". I had never seen that before and had no idea what it meant so I swiped again and got the same message. Finally, the cashier finished ringing up the order, saw what I was doing, and said I had to insert the card in the terminal. The Marriott cards are the new kind with the computer chip. I had to slide the card into a slot on the bottom of the swipe terminal and it read the chip rather than the magnetic strip. Pretty cool. First time I had encountered a reader that used the chip.

I had this happen to me about two weeks ago at Walmart as well. I had the new Wells Fargo Propel World Amex with the new chip in. It did seem like it took longer for the computer to process or read the card. But if it is safer, I think it will be worth it.

[disneysteve]

I had this happen to me about two weeks ago at Walmart as well. I had the new Wells Fargo Propel World Amex with the new chip in. It did seem like it took longer for the computer to process or read the card. But if it is safer, I think it will be worth it.

I didn't find it to take longer at all. You might have just caught the system at a busy moment.

[corn18]

Two issues that make paying cash take longer than paying with a CC:

1. Cashiers take longer to figure out how to give change
2. The dunderheads that insist on giving the cashier exact change and take 2 minutes pulling that last dime out of their teenie tiny change purse

Although if we all paid cash, prices could go down 3% across the board.

[JoeP]

Joe, I suggest you 1st decide which type of CC is most beneficial to you. We've recently switched to a 'cash back' card that pays a 4% rebate [discount] on 'recurring' charges like cell phone, electric, cable, home and auto insurance; 3% for gas and groceries and 1% on misc.

Using CCs to capture benefits offered are a disaster for individuals who don't control spending and don't pay attention to small details. You need to know Statement Date and Payment Due Date so that the balance is paid in full, on line, on time via the bank's electronic payment system clearing at least two business day in advance. While the Statement Date and Due Date remain pretty consistent, you must ensure you've paid in full before weekends or bank holidays anytime there is a balance pending. Interest rates are too high a penalty on CC.

So what is the difference between the Statement Date and the Payment Due Date? It sounds like former is the end date of a billing period, and the latter is the date when the balance (or partial payment) from that is due.

I tried to float at least discussing the idea past my wife last night, and it was met with resistance. We're very old school, so this type of change is a little difficult. Her primary concern is that we will not have enough in checking to cover the expenses for the period. My answer was to budget, and keep a tally of how much we spend against each expense category. Maybe this could be as simple as a sheet of paper with start and and dates for the statement period, a maximum amount, and then a tally of how much we spend against that maximum.

[disneysteve]

[QUOTE=JoeP;388956]So what is the difference between the Statement Date and the Payment Due Date? It sounds like former is the end date of a billing period, and the latter is the date when the balance (or partial payment) from that is due.[quote]
Exactly.

Her primary concern is that we will not have enough in checking to cover the expenses for the period.

If you don't have enough to cover expenses, it doesn't matter if you are paying with cash, check, or credit cards. You're screwed either way.

The problem is that a credit card allows you to spend money you don't have in a way that cash and checks does not. You need to be aware of how much is in your account at all times (unless you keep a sufficient buffer in your account). And neither of you can go out and make a big purchase without the other knowing to avoid both of you spending at the same time and exceeding available funds.

[JoeP]

The problem is that a credit card allows you to spend money you don't have in a way that cash and checks does not. You need to be aware of how much is in your account at all times (unless you keep a sufficient buffer in your account). And neither of you can go out and make a big purchase without the other knowing to avoid both of you spending at the same time and exceeding available funds.

That's the risk. With cash/debit, it is physically impossible to spend money that isn't there. With a credit card, it is possible to spend the money that doesn't yet exist.

It is best practice to only charge what you can actually cover at the time of purchase. A slightly worse practice is to spend money you don't yet have, but then pay it off before the due date when you have that money in hand.

We want the first option.

[FrugalFish]

If that bothers you, I'm guessing you've never gotten stuck behind that person who whips out 100 coupons as the cashier is finishing up! Give me a cranky credit card kiosk any day...

[disneysteve]

It is best practice to only charge what you can actually cover at the time of purchase. A slightly worse practice is to spend money you don't yet have, but then pay it off before the due date when you have that money in hand.

We want the first option.

I don't consider the second option to be an option. That's what gets people in trouble. "I'll pay the bill after I get my next paycheck." Then they get sick, miss 3 days of work, and their check is lower than anticipated and they can't pay their bill.

Don't spend money you don't have no matter what form of payment you are using. If you can't keep track of how much you have, don't use credit cards. They aren't appropriate for everyone.

[JoeP]

So it sounds like we'd have to save up enough now so that every credit card purchase has the actual cash in the checking account to back it. In his case, it is really no different from paying as we do now using debit, with the exception that there is a delay between the purchases and when we make the cumulative payment to the credit card company.

If we commit, the next step would be to identify a card that provides some sort of reward. We don't travel much, so a cash back option would probably work out best for us.

[bigdaddybus]

My wife and I joke that I always pick the worst lines at stores.

If their is someone with a bad back who cant get their stuff out of their cart to put on the conveyer and needs to try 3-4 different credit cards to find one thats not maxed out to charge $25 in intimate apparel at walmart.....I'm the guy waiting behind her LOL

[bigdaddybus]

So it sounds like we'd have to save up enough now so that every credit card purchase has the actual cash in the checking account to back it. In his case, it is really no different from paying as we do now using debit, with the exception that there is a delay between the purchases and when we make the cumulative payment to the credit card company.

If we commit, the next step would be to identify a card that provides some sort of reward. We don't travel much, so a cash back option would probably work out best for us.

Over the last 4 years my wife and I have averaged $825 in cash back bonus per year and have paid 0 interest. We charge absolutely everything we can on one card. Daycare, gymnastics fees, all fuel, all food, all home improvements, etc and it adds up.

My wife and I have taken several Dave Ramsey classes and for us we do spend less when we use cash than when we use credit. It takes a me additional effort make sure I only charge what we need/not want, but the CC perks are worth it IMO.

[snafu]

If DW is uncomfortable with the idea, there is no need to change or charge. You operate on a tight budget and like the system you're using.

[BuckyBadger]

If DW is uncomfortable with the idea, there is no need to change or charge. You operate on a tight budget and like the system you're using.

Plus, if your operating expenses aren't very high your rewards might not be worth it. We charge between four and six thousand dollars every month, so we get fairly substantial rewards. Others may not.

[Kharisma]

Yes, I see it

Does anyone else suffer from anxiety having to wait in a checkout line, cash in hand, while people in front fumble with plastic? I frequently pay with cash, and have observed that situations like this are becoming more common, and ratchet up my stress levels:

"No, don't swipe until the purchase is complete. Try now. No, swipe in the other direction. Did you pick credit? Yes, the top left button. Do you have a rewards card? Swipe that now. No, you have to swipe your credit card again. Sign now. That stylus is touchy, so you have to hit clear and sign again, really press down this time. Ok, press submit."

Maybe I'm a little jaded, but why can't this be more efficient? I show up with my items and cash, and more times than not, it is far faster to give me change. I even quip, "I'm going to throw your a curve ball and pay with cash."

OMGosh this post is hilarious and true, Lol! I see this often at grocery stores and to be honest, sometimes I am the culprit. The reason is that not all the swipe readers are the same and some are faulty, in need of being upgraded, or the power cord is on verge of becoming accidentally unplugged. Another thing is that after so many swipes, the card reader gets clogged with grit, lint, or whatever and is in need of being cleansed by store staff before it can read the credit card info clearly.