Something for Sunday

I never thought about this before, but it makes so much sense. We need to use cash as much as possible---at least for small businesses. 

Connie prefers to use cash while I just about always use a card. You know---for those points. But, there are some places where you cannot use cash. I can't exactly remember where, but Connie has encountered this several times.

Well, here's an interesting take on it all---and worth considering.

I have a $50 bill in my wallet. 

I go to a restaurant and pay for dinner with it. The restaurant owner then uses the bill to pay for the laundry. The laundry owner then uses the bill to pay the barber. The barber will then use the bill for shopping. 

After an unlimited number of uses, it still remained $50--- everyone who used it got the advantage of the full $50.

But if I come to a restaurant and pay with a credit card, the bank fees for my payment transaction charged to the seller are 3%, so around $1.50--and so that fee of $1.50 continues for each further payment transaction--owner, laundry, barber and so on. Therefore, after 30 transactions, of the initial $50, only $5 remains---meaning that the bank got $45 of the original $50 due to all the transaction fees.

We can help small businesses by paying cash. 

Imagine what each retailer is paying on a monthly basis in fees at 3% per transaction for credit card payments. If they have, for example, $50,000 in sales & 90% are by credit card, they are paying $1500 in fees in ONE Month. $18,000 in a year! That comes out of their income every month. That would go a long way to helping that small business provide for its family!

I guess, I'm going to need to start getting more cash every month---at least for those small businesses. Or better yet, maybe we need to check the dryer!