Too Soon To Ditch Cash

It seems like there are more places that accept credit cards each day. Even low-cost purchases once considered too small to be put on plastic can often be charged at places like fast food eateries and drugstores.

Compare Low Interest Credit CardsMeanwhile, technology is making it easier to pay without cash ever coming into the picture. Recent developments allows consumers to perform transactions with contactless credit cards that don't even need to be swiped. And, talk of payment information being loaded onto cell phones suggests there are incredible opportunities for what lies ahead.

All this momentum seems to indicate consumers can leave the house with a credit card and never have to even worry about putting cash in their wallets or swinging by an ATM. But some experts suggest that it is too early for consumers to ditch greenbacks altogether.

While much of the world appears to be going cashless, cash-only businesses do still exist. Patrons of these establishments will want to make sure they have some paper money on hand when they decide to purchase goods or services.

Certain businesses may feel cash is an easier way to carry out transaction. At businesses such as parking garages, cash is still king.

And, people that make their money through tips still appreciate hard currency. After all, consumers can't exactly swipe their credit card across a tip jar.

The coffee shop or local bar may be two of the places where tip jars commonly appear. Anyone who has ever left their credit card at a bar after a few too many drinks may also decide to pay for their beverages in cash.

People may choose to tip using cash outside the doors of traditional businesses as well. A street musician's hat and those familiar Salvation Army kettles are not likely to be filled with credit card receipts anytime soon.

A MasterCard poll found that almost half of those surveyed admitted to carrying less cash than they did five years before. That survey also revealed that some 60% of respondents only had $20 or less with them.

Even though cash may sometimes feel like the less modern way to do business, consumers who only carry a credit card may still wish they had another payment option from time to time.

By Jeremy Simon