In the contemporary landscape of payment methods, it is essential to re-evaluate the significance of cash transactions over credit card usage. While plastic money is very handy, there is a strong argument for the adoption of cash as a preferred mode of payment, for it fosters a seamless circulation of money within the local economy, unlike credit cards which incur transaction charges. Let us look at how cash has a role in preserving the economic vitality of our communities.
When a customer spends €50 in cash at a shop, the cycle of economic activity commences. The retailer can then utilise that same €50 to purchase goods from another shopkeeper, who, in turn, can pay a staff member or use it for other expenditures. This continuous circulation of cash fuels economic growth and ensures that every euro contributes to the overall financial well-being of the community.
On the contrary, when a credit card is used to make the same €50 purchase, the retailer is burdened with a 3% transaction charge. Consequently, the initial €50 worth of goods now translates to only €48.50 available for the retailer's subsequent expenditures. This reduction in purchasing power inhibits the efficient flow of money within the local economy, potentially leading to a stagnation of economic growth.
Furthermore, the ripple effect of credit card charges does not end there. If the retailer, now equipped with €48.50, proceeds to use their credit card for another transaction of the same amount, another 3% levy will apply, further reducing the available funds. This cycle continues until the entire €50 is gradually depleted by credit card charges. Such a scenario does not befall cash transactions, as they remain unaffected by transaction fees.
In light of the growing inclination towards a cashless society, it is important that we acknowledge the potential ramifications of excessive credit card usage. While credit cards offer convenience and ease of use, we must be cautious not to overlook the adverse impact of transaction charges on businesses and the local economy.
In conclusion, advocating for cash transactions is not merely a matter of personal preference but an economically sound decision. By embracing cash, we support a sustainable economic ecosystem where money flows freely, empowering businesses to thrive and stimulating growth within our communities. As we navigate the inevitable shift towards a cashless society, let us remain mindful of the benefits of cash and consider it a prudent choice for the betterment of our local economies.