The Help Centers

Most of us have them that light, easy to carry, easy to use plastic card.  Most often a credit or debit card or even a gift card.  They are SO convenient and wonderful.   In recent years the use of plastic instead of bills has increased so much.  Go into most gas stations and you can buy a gift card for most major stores both off and on line.  But there are several hidden problems with this ‘new money’.Read More Below...

We’ve seen those credit card commercials where the shop employees and customers are in a complex but highly organized dance to a familiar tune.  There is a surreal happiness and comfort in the activity.  They swipe or wave the card and GO!  Then a person appears often socially at odds with the others in the store with good old bills and coin and the whole operation comes to a halt as they make their transaction.  “Wow,” you think to yourself, “That would be TERRIBLE to be that person I want to be the others, they can juggle!” Immediately you’re  mind is then off the subject as your favorite sitcom comes on the screen.

But are these cards more trouble for the ability to blaze through the line at the store?  In some ways yes.  But lets go over the good these cards can do.

• First off you can’t shove bills and coins on the Internet.   I did have someone’s daughter years ago try (she shoved about $0.75 in coins into a floppy drive) But for online transactions you NEED a card or at least a Paypal or similar account.
• Then there are the BIG purchases.  Most people will use a card to buy things like a stove or entertainment center as hauling $800  is not only cumbersome in $20’s but also dangerous as the next point will show.
• Most cards offer some kind of protection if lost or stolen.  Cash just can’t do this.
• There are the points/giveaways and cash back(funny I don’t get a dollar bill in my statement).
• Some cards offer additional discounts and membership privileges.
• Warranty extensions and buyer protection
• Ease of use have you ever paid cash at a prepay gas pump in the rain? Yeah you know what I mean.

All of these things are good and positive things.  However here is the bad

• First off for credit cards there are interest rates and fees.  Even paying off your card  entirely every month could COST you money as some cards are now penalizing customers who pay everything.
• Fine print - there is often fine print that we overlook.  Most of the gift cards start to charge a $5 per month fee after a certain time if you don’t use the card! In reality the cards were NOT created to be a nice gift but more likely an easy source of revenue.
• Ease of use - How can this be a bad AND good thing.  Well for large purchases it’s easy to see but what about the quick $3.50 latte or the $.99 song download?   These can add up QUICKLY and then if you make a mistake and have a bounced charge it that $.99 could cost you $35 in fees.  This is a trap that some banks are exploiting to generate revenue.  So be careful.
• It’s just a card so purchases seem a bit removed from your actual money so some tend to gloss over that and will often spend more.  Most stores which take plastic know this so the fees they are charged (often a set fee plus a percentage of the sale) is worth the extra purchase you will make.
• ATM Fees   you may not realize it when you need the green but taking money out from a third party ATM could cost you not only that ATM fee but your bank may also charge you.  A $20 withdrawal may cost $3  and if you only have $21 in your account could then add a $35 fee for being overdrawn.

Now how to use cards effectively is relatively simple.  It does take a little work.

• Keep on top of your finances - BUDGET, PLAN and REVIEW your money.  Even when going out for a quick trip say to yourself this should cost X dollars because I’m getting  A, B and C.
• Make grocery and similar lists to keep your shopping trips ontrack.
• Use CASH when you can.  This way when the pocket is empty you are DONE and you will have no fees because you can’t overdraw.  If you’ve planned your shopping and have a budget then this should be easy.   This way the ‘extra’ won’t be so much of a easy thing to get.
• Get cash at BANK ATM’s.  Most if not all bank ATM’s do NOT charge their account holders for using the Bank’s ATM.  Some stores will also give cash back if you ask for a Debit card (but why are you using it hmmm?).  Beware the ‘No-Fee’   ATM at the convenience store as they may not charge but your BANK may charge.
• Give cash or gift certificates instead of gift cards.  While they may be cute and easy the fees can end up making that $15  gift into a $0 one.

These tips should avoid the issues and keep you on track when using your cards.  But there is one final thought.  In the commercial the people using cards spend less than a second with the cashier.  A quick smile is all that is exchanged and they are gone.  In society today customer service and convenience are being reduced to competent self service.  Self Checkout, Online Purchasing while saving time and money remove the joy of human interaction.  The brief conversation while money is changing hands is be taken from a  brief catch up with the neighbor to being socially unacceptable.   In many stores, especially the ones with the wave the card readers, the clerks behind the counter talk to coworkers, gab on the phone, read or something else as I make a transaction.  While I may not like it I accept this indifference as I’ve been accustomed to it.  I goto the self checkouts to get out of the store quicker.  Yet we complain how detached society is.

So keep the cash in your pocket.  Plan your shopping, budget, review your statements.  SLOW DOWN!  Foster human interaction and make retailers feel that REAL customer service IS a priority! By the way for all the times I’ve used plastic for purchases  I STILL can’t juggle!