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Some younger people see no need to carry cash around anymore. I am talking about the green stuff, folding money. In mid July I saw a post on LinkedIn from a person is Asia who was out with their grandfather. After paying for coffee with their phone, remarked carrying cash was unnecessary. “Why would you need it?” As they were walking, I think they passed a street musician. The grandfather peeled off a bill and gave it to the guy. He made the case to his grandchild that there are some things you cannot do with a virtual wallet. Why do you still need cash?
Let us eliminate conspiracy theories about “Big Brother.” Ditto hackers and rogue computer systems. Cashless transactions convey lots of benefits. The hospitality industry had an employee theft problem in the past. When cash is taken out of the equation and charges are done electronically, many of these problems disappear.
Your need for cash varies depending on your lifestyle. Here are a few examples where you client might need folding money or alternate ways of paying.
1.Not all establishments accept all cards. Costco accepts VISA, but does not accept payment by American Express cards. This is when cash or personal checks come in handy. Costco accepts ApplePay, and other mobile payment systems, but not at Costco gas stations. (1) (They don’t accept cash at their gas stations either, so you need the right card.) Cash is handy when your favorite card is not accepted.
2. Some restaurants pass along a 2.5% credit card surcharge. One of our favorite Italian restaurants has a notation on the menu they add a 2.5% transaction fee if you use a credit card for payment. They accept all cards, but this comes at a cost.
3. Sometimes credit card systems don’t work. Put yourself in our shoes. We were at a great restaurant in Mertert, Luxembourg. After a fabulous, multi course lunch we called for the bill. My AMEX card did not work. Neither did my VISA or Mastercard. I went to a nearby ATM. My debit cards did not work either! Returning to the restaurant, my wife and I scraped up enough cash to pay the entire bill, but could not leave as large a tip as we wanted. Thank goodness we had cash!
4. Some businesses only accept cash or checks. Our local auction house does not accept credit cards. My barber accepts cash, checks and Venmo. Peter Lugar, the famous Brooklyn, NY steakhouse does not accept credit cards. Debit cards, cash, checks or their own card are the only forms of payment they accept in the restaurant. You need to know the rules before you go or choose someplace else.
5. Tipping waitstaff. Everyone knows restaurant waitstaff are generally not paid the minimum wage. The expression “they work for tips” is inaccurate, because they do make something, but it might be only $2.13/hour. (2) When you add a tip to the bill, it might be unclear how much your server gets. If you leave paper money you know it is all going to them.
6. Cash gets you thinking twice about what things cost. When you go out for drinks on a Friday, it is easy to forget what things cost when you pay by credit card. If you keep discretionary spending like this on a cash basis, you know it’s time to go home when the money runs out! It is easy to forget what you are spending when you have a good time. Cash gives perspective.
7. On the spot charitable contributions. Like the fellow in the introduction tipping a street musician, it helps to have folding money on hand. At the other end of the spectrum, if you are attending a charity gala and they are selling raffle tickets, it helps to have cash or a check on hand. Sometimes, paying by card is not an option.
8. Tipping at the coat check and parking valet. When you are at lunch or dinner (or that gala event) there are instances where you should hand over a small gratuity. If you don’t, others might think you are cheap or a freeloader. Always bring small bills when going out.
9. Some contractors prefer to be paid in cash. There is an underground economy. It might not be legal. You do not know how they do their taxes. They say “cash is king.” Sometimes how you pay influences the price they charge. Make sure you get a proper bill and a receipt for your payment, but you might choose to pay them as they have requested.
10. Tipping at hotels and on cruise ships. There are places where you can get away with not tipping. We leave cash in the hotel room when we stay overseas or in major US hotels. We hand out white envelopes on the last day on cruise ships. These folks work hard. They should get something going directly to them.
11. Carry cash helps when negotiating at antique markets. If you are a collector or have a hobby you find yourself outdoor markets or large events in convention centers. You are dealing with vendors, often with small scale businesses and often negotiating on price. Paying in cash can be an advantage.
12. US currency is handy when traveling overseas. If you travel overseas to countries with a weak currency, you will find they love US dollars. This isn’t limited to purchasing merchandise. When traveling to Argentina years ago, a friend advised us to bring $100 in singles and fives. This was to give to taxi drivers, doormen and others in service roles. Dollars are appreciated.
You can make the case we are moving in the direction of being a cashless society, but we are not there yet. Paper money still has many uses.
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1. https://www.linkedin.com/pulse/does-costco-take-apple-pay-comprehensive-guide-tebid-kelly-aoc2f/