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View Diary: Good thing banks don't want customers, because they're losing them (183 comments)

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  •  Oh yes, and my (8+ / 0-)

    family is moving to cash. I'm tired of giving a cut to the banks when I pay for something.

    An interesting side effect of having cash in my wallet, is that the money is more real to me, and I've become more frugal. I've used my debit card for so long, and for some illogical reason, its much easier for me to overspend with the plastic than it is with a $20 bill.

    When I was waiting tables after college, I couldn't look at a dollar without thinking about the sore feet and backaches and stress that went into earning that dollar. That dollar represented my sweat. How could I waste my sweat?

    "YOPP!" --Horton Hears a Who

    by Reepicheep on Mon Nov 21, 2011 at 11:42:31 AM PST

    •  It's not just you. (2+ / 0-)

      Psychology Today: Spending and credit cards

      There is also a lot of evidence that consumers spend more money when paying with credit cards than when they are spending cash. For example, Drazen Prelec and Duncan Simester reported studies on this topic in a 2001 issue of Marketing Letters. In one study, they told that randomly selected participants in the study would be offered the opportunity to purchase tickets to an actual professional basketball game that had just sold out. These tickets were highly desirable. Participants were told either that they would have to pay in cash or that they would have to pay by credit card. They were asked how much they would be willing to pay for these tickets. Those who were told they would have to pay by credit card were willing to pay over twice as much on average as those who were told that they would have to pay by cash.

      -7.75 -4.67

      "Freedom's just another word for nothing left to lose."

      There are no Christians in foxholes.

      by Odysseus on Mon Nov 21, 2011 at 12:41:33 PM PST

      [ Parent ]

    •  the hidden cost of using plastic (2+ / 0-)
      Recommended by:
      crankypatriot, Reepicheep

      small business owners pay hefty card swipe fees, which are usually invisible to the customer.  I recently commented that my sister (who owns a small restaurant) pays up to $3,500 per month in credit card swipe fees!  ("It's often higher than my rent for the building".)  In a recent diary, I speculated that if she was able to keep that money in her pocket, she could 1) buy health/dental insurance, 2) hire another part-time employee, or 3) have a personal income >$30K for the first time ever.  I repeated that comment to her, and she replied "Ha! With an extra $3,500/month, I could do all 3 of those things!"

      Merchants Push Visa, MasterCard For Surcharging Rights

      Merchants paid $48.06 billion in fees on purchases made with Visa and MasterCard credit and debit cards in 2010, up from $41.86 billion in 2006, according to the Nilson Report, a payments industry newsletter.

      As part of last year's Dodd-Frank Act, the Federal Reserve Board cut by almost half the amount of fees large banks can charge retailers on debit-card purchases. Those fees, known as interchange, are set by Visa and MasterCard but collected by the banks that issue their cards as revenue.

    •  Exactly. (0+ / 0-)

      Money in your wallet is real. A debit or credit card is just plastic.

      Calling it "Playing Devil's Advocate" still doesn't excuse defense of evil beliefs, opinions, and actions.

      by Killer of Sacred Cows on Wed Nov 23, 2011 at 12:08:02 PM PST

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