Why You Should Pay By Cash When You Shop Local?

There are various methods which people uses to transactions daily on there lifestyle as a practice. If you go to a retail outlet to purchase some house hold stuffs or when you order pizza for delivery or to pick up from the store, you are making the payment. Most of the time when you are making the payment you choose cards to make the payment for your purchase of goods or services. You should know that when you are making a payment via cards but not with cash, you paying multiple fees for the transaction that you are performing through.

The mostly used cards, VISA , American Express and Master Cards are used commonly across world to make online and onsite payments. If you are visiting the store and trying to purchase goods and if you have cash with you, it's good if you can make the payment via cash because there's a transaction cost for you or the seller needs to pay for a another institutions like banks and card providers and service providers which is huge in the end when it comes with larger bills.


Above image shows you a glance of the process flow in the general credit card flow. But there's more.



  • Credit Card Printing Machine


  • Credit Card POS Machine


  • Payment Gateway


  • Processing Servers

  • Validation Servers

  • Data Link


  • Card Issuing Bank


  • Card Issuing Organization


For everything on top there is a one time cost as well as a recurring cost. Usually this cost is 3.5% and $.30 cents per transaction. So this cost is covered by you where the seller needs to settle to the bank or other institutions. If they didn't charged it from you they needs to pay from there pocket. 

Imagine you are in China and using Master Card or VISA card to make daily payments what you can pay by cash. There will be a minimum transaction fee of 1.9% per a transaction fee charging by VISA or Master Card?. Imagine you are paying USD15 bills 10 times per month. Altogether that around 150USD amount. so from that 150USD a 1.9% is 2.85USD. Imagine 1,000,000 people do same amount of transactions per month which will be 2,850,000USD value sent out from the country to another nation just for a transaction that you can make without paying any to other organizations.

This is why you should stop using card payments whenever you have the possibility of making a cash payment to services and goods that you purchase.