12/23/2022
Returntonow.net
Don’t miss this lesson… Why should we pay cash everywhere with banknotes instead of a card?
- I have a $50 banknote in my pocket. Going to a restaurant and paying for dinner with it. The restaurant owner then uses the note to pay for the laundry. The laundry owner then uses the note to pay the barber. The barber will then use the note for shopping. After an unlimited number of payments, it will still remain a $50, which has fulfilled its purpose to everyone who used it for payment and the bank has jumped dry from every cash payment transaction made.
But if I come to a restaurant and pay with digital Card, bank fees for my payment transaction charged to the seller are 3% so around $1.50 and so the fee $1.50 for each further payment transaction for restaurant owner or payments of the owner of the laundry shop, the barber etc.. Therefore, after 30 transactions, the initial $50 will remain only $5 and the remaining $45 became the property of the bank thanks to all digital transactions and fees.
Pay with cash. I personally need to do better at this.
