When it comes to making purchases, many Americans have shifted toward paying with their credit and debit cards more than paying in cash. Yes, paying with a charge card is quicker but may not be as convenient as paying in cash. With that, here are five reasons why you should always pay in cash when it is possible.
Whenever you pay in cash, you do not have to worry about your payment being rejected. People who pay with a check or charge card, risk the check or charge card being rejected. Not only is this is upsetting for them, but can also be embarrassing if there are onlookers.
Some businesses only accept cash
Not all vendors accept charge cards or checks. If you are at a flea market, carnival, or fair, the vendor may not have a credit card machine. They also will not have a machine to run your check through for verification. However, when you pull out some cash, you can have whatever you want.
When you are paying in cash, the merchant can actually see the amount of money you have. They know what you are working with, and they want what is in your pocket, purse, or pouch. Therefore, they may be willing to drop prices because they know you can make the purchase, and they can make the commission.
You cannot be overcharged
When you pay in cash, whatever you give the merchant is what they get. Allowing somebody to charge your card leaves them room to overcharge you for a purchase. The overcharge can possibly place your bank account in the negative and cause you to have to pay an overdraft fee. Also, it may take two business days or more for the over drafted money to appear back in your account.
Ability to help friends out
If you are out with friends and they need some money, it will be easier for you to lend it to them in cash. Having cash will save you from having to put their drink on your tab or additional charges you may try to cover them on.
Your bank account is not affected
When you carry cash, you know what you have to spend for the day, as you only spend the money you are carrying. You can easily look into your wallet or purse and know what you have left to work with for the occasion.
As you can see, having cash on hand is still the way to go. Therefore, if you are one of the many Americans constantly using your charge card, start paying in cash and strengthen your financial position.