Paper Money Vs. Plastic Cards

Some people think that cards will soon be the only form of money.

Because paper money is no longer redeemable in gold or silver bullion, some people think of it as a useless anachronism. Many people prefer cards to paper money. But a lot of people like to use cash as much as possible. There are advantages to each.

Versatility

Cash is accepted almost everywhere.

One advantage of cash is that it is accepted almost anywhere. There are certain companies that insist people use cards to pay their bills, but there are many more proprietors who accept only cash. Cards are useless at lemonade stands, garage sales or when trying to get on the bus. Some retail stores to charge a fee for card transactions.

Security

Your credit and debit card numbers are vulnerable to theft.

On the one hand, cash seems much more likely to be stolen from you, since any thief is able to use to money right away. However, physical money must be stolen in person. Money on credit and debit cards can be stolen remotely. Hackers can swipe sensitive account numbers. At that point your other accounts, and your identity as a whole, is vulnerable.

Privacy

Some people just do not want their spouses, the government, and the world's most powerful financial institutions to know everything about their purchasing habits. Some people want to be able to do "under the table" transactions instead of having to file a 1099 form with the IRS every time they hire a friend to help them with something. Cash transactions are much less traceable, and people who value their privacy like cash.

Ease of Handling

Some people think credit cards are easier to carry than cash.

In many ways, cards seem easier to carry around in your wallet. Cards take up less space, and there is less fumbling when you take one out to pay for something. You do, however, have to either punch in a code or sign your name to use a card, and you may have to show your identification. You can also send a friend down to the store with cash to buy something on your behalf.

References

• The Telegraph: Is a Cashless Society on the Cards?