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Wednesday, November 28, 2012

Paper or plastic: Choosing the right medium of exchange

More and more people are emptying their wallets of paper currency in exchange for carrying around plastic cards to swipe. Since the creation of debit cards, fewer and fewer people use actual paper cash. A large portion of those who carry cash do so in order to purchase items from stores that don't support digital transfers. However, the number of those businesses that don't have the means to swipe debit and credit cards is dwindling as well. With the availability of direct deposit, online banking, and checking account access through your debit card, there really isn't a need to carry cash in most cases. How is this beneficial to the population? 

1. Tracking

If you're ever in doubt about where your money went, it's as easy as looking up your banking account on the Internet. Through these reports, you can get a better idea of what you need to spend less money on as frivolous purchases will be there forever on a computer screen staring back at you with accusing texts.  

2. Distribution

Digital transfer of money can happen instantaneously to pay anyone located nearly anywhere. With certain services, you can get emergency reserves of cash instantly through on online transfer. For instance, you are vacationing in the Philippines and you run out of money halfway through your visit. If you're using services such as PayPal's MasterCard, you can have anyone add money to your PayPal account instantly in the United States to be used in the Philippines. 

3. Correct change accuracy

 Some of you may think getting exact change could be a good or bad thing. No longer will you have to make sure that the cashier handed you the correct amount of money to prevent a shortage. On the other side of that coin, you wouldn't be given more change than you were due. It's a balance of the financial cosmos that could ensure that goods are paid for as they were meant to be. 

4. Faster transactions 

- Whether you are swiping your debit card or using the smartphone to process a payment, the entire transaction is faster than if you were to give cash. Not all cashiers are created equal and some could take their time counting out exact change. In many cases, a card-swipe transaction could happen three to four times for every one cash transaction. 

 5. Accurate bookkeeping 

Instead of counting out a register or deposits for the bank, the exact amounts are moved automatically. As most bookkeeping software can connect to your bank for record synchronization, it could turn an hour of time into a few minutes with every penny accounted for. Although those who have creative bookkeeping skills can still play with the numbers to his or her benefit, the point is still sound. 

Carrying around a few dollars in your wallet may not be a bad idea if you're an avid card-swiper. In instances where cash is the only currency available to use, having paper cash on hand could mean the difference between filling up a gas-can or walking home. However, as more and more people embrace technology, the need for cash on hand will continue to decrease. 

About the authors: Paul and his wife Julie both spend quite a bit of time coming up with ideas, blogging, and researching all things related to childcare. They take care of all the necessary information related to “babysittingjobs.com/”. He personally thinks his blog will help with finding information on all things related to a babysitter.

1 comment:

  1. Plastic cards are adorable and awesome in style and looks and thanks for sharing great info.