Orbifx's logarion 🌙

Cash-full transactions

| | | topics: commons, economics > personal finance, social movement
id: 57d68a30-2b45-490f-8eba-b2ba4458d16c

The contact-less part of my card has not been used for a long long time. Months probably. I only use my card at local ATMs to withdraw cash for the week ahead.

Why?

  1. Maximises the amount of cash flow that stays in the community
  2. Effortlessly keeps me aware of my spending
  3. Maintains my privacy (bank doesn't know where that cash will be spent)

The second benefit could be another text, but I will just say I have seen a great reduction in my spending without actually missing anything in the end. I know exactly where I stand at any moment of the week.

So why does it maximise the flow of cash in the community? The cost of each electronic transaction.

Firstly a business has to pay to own one of the readers, either by buying them or renting them. Then every time a card or contact-less payment is performed, the business has to pay a percentage and possibly an additional flat fee per transaction. Looking at tables by Merchant Machine and Wikipedia, the costs can vary from as low as ~1% to 15% (Apple Pay). Take a moment and imagine every payment that is happening in your community at the moment. Now imagine that for every payment 3% is syphoned to Silicon Valley. There goes one, another.. and another.

Some hail crypto-currency as the solution. I think our imagination is stuck to the computerising and bureaucratising trend of the decade. We've already got what we need for payments, I'm not buying this snake-oil.

Paying with cash is easy and fast. Take the wallet out, have a little discussion as I gather the coins or bills and hand them over. Take your time being human, you can afford it.