Dear All, Here's an eye-opening article from the NY Times on why paying cash (instead of on a credit card) will cost you more.  Read the last paragraph especiallY!  http://www.nytimes.com/2009/10/02/business/economy/02norris.html?emc=tnt&tntemail0=y

Yours in Him, Deb

interesting I never thought of it that way ...   I'll reread this later .

Here is the paragraph that spoke the loudest to me:

"It was just 51 years ago that Bank of America introduced the BankAmericard, which became Visa. Before that, few people had access to plastic, and consumer debt was about 13 percent of annual personal income. Now the figure is 21 percent."

21% of income to consumer debt frightens me!

I'll still pay cash. The article doesn't take into account that the merchant fees are built into the price of the product, something the merchants probably aren't mentioning when they protest paying the merchant fees. It only takes into account the prices of goods using debit/credit cards versus paying cash.

Life isn't fair. It isn't ever going to fair for everyone all the time. So why do people keep harping on it?

Jill

Deb, I didn't mean you. I meant the author of the article.

Jill

I would be interested to see the response from businesses about this.  It almost makes me wonder if a company would make more money by giving an incentive for paying cash.  And with the holiday season just around the corner I could see some places doing just that -- pay cash and get an additional X% discount.  I think on major purchases (computers, t.v., appliances, etc.) using a CC is the best way to go as it protects you if something goes wrong.  But on smaller stuff (toys, DVDs, music CDs, etc.) a small discount to the cash payer could be beneficial to the vendor.

Too much to think about, lol. I know merchants have to price goods to account for credit card fees because I've been in so many stores with cash and have had the clerks go, "don't see many people pay with cash." :) Actually I use a debit card mostly now, but sometimes I'll save up cash for a big purchase. peace.