Today everyone carries at least one debit card in their pocket. We can even see that there are studies that indicate that most of us use a type of credit/debit card for various payments.
In fact, the credit card is gaining ground against the debit card, of more traditional use in the UK and, given this, we have the eternal question, what is better, pay by card or cash?
Like almost everything in the world of the economy, the answer is not clear but more and more it is tilting in favor of the cards, although until not long ago many establishments did not allow card payment due to the commissions supported by the use of the POS.
The banking competition has gradually resolved this problem to the point that many establishments no longer have a minimum card payment limit. In addition, the possibility of linking cards to apps, mobiles, etc., makes their use something increasingly useful and fast.
The cash payment, in the end, only has a clear advantage, which is rather psychological, and that is that the mere vision of money makes us more afraid to spend it.
However, the same economic limitation has over cash that a debit card, which is the money available, is much easier to carry.
The credit card
Another different issue is the credit card, which implies the immediate acceptance of a debt with the issuing entity. Normally, the cards that charge the entire balance spent monthly at the beginning of the next do not usually charge interest, but the postponement of the card payment does have interest that usually reaches two digits. Therefore, the use of the credit card does require personal control of the spending trend.
The latest loyalty policies of financial institutions link the absence of charging maintenance fees to the use of credit cards, not debit cards as before, so on this side we are also pushed to their use.
Cards and globalization
On the other hand, in an interconnected world in which we travel continuously and carry out online operations on a daily basis, card handling is essential. One thing is that we like to carry money in your pocket and another to dispense with the use of cards.
The current security measures make the possibilities of fraud with these means of payment, the great fear of the general public, are basically the same as with any other form of payment.
Cards and the fight against fraud
In addition, we have to take into account an important legal consideration. The fight against tax fraud and money laundering has a very important ally in the use of cards, since it allows the registration and tracking of financial operations.
In certain countries a cash payment limitation is established, in which an entrepreneur intervenes. for an amount equal to or greater than 2,500 euros or 15,000 euros if you are not a resident.
These measures will progress to the point where it is not unreasonable that the cash is left only for the field of the numismatic collector. In fact, there are Nordic countries that plan to end the circulation of cash in the short term.
In short, it does not hurt that we gradually get used to the handling of debit and credit cards as the main way to make payments, since the environment pushes us to this scenario.