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The Pros And Cons Of Cash And Card Payment

Throughout the ages, people of different tribes and languages have engaged in a form of commercial activity or the other. That is the exchange of goods and services for payments. These transactions did not always involve a form of monetary payment. Historically, there were times when standard money was not even in existence, and people had to make use of other means of payment to perform financial transactions. From bartering and livestock to precious metals, leather money, gold, paper money, U.s dollars, credit cards, digital wallets, e.t.c, the evolution in technology has transformed our payment system.

The Pros And Cons Of Cash And Card Payment

Nevertheless, each of these payment systems has its defaults and areas of profitability. Thus, the essence of this article, which is to consider the pros and cons of cash and card payments. Let’s dive in.


Employing the use of plastic credit for making purchases means little or no need for stock in the pocket. The burden of having to carry too much money around, especially when procuring or securing goods and services that require spending big is taken care of. The system makes financial transactions seemingly simple, fast and pleasurable.

With affinity cards, a customer has more purchasing power than someone with cash- The ability to borrow money to a particular limit to make payment for goods and services; though with interest to be paid at the due date. This aspect of convenience is particularly beneficial to debt collection agencies as card collection is incorporated in their means of payment. With this, debtors can pay their debts with credit cards irrespective of their location.

Pitfall (demerit) Convenience and power do not come at no cost. Credit plastic holders must pay back what they borrowed with interest. The interests are capable of stockpiling into huge debts when they are not settled within the stipulated period. A customer with note worry less as cash payment attract no charges of whatsoever; it’s a value for money.

Online Experience

 You may not have that enjoyable shopping experience if you are a cash-carrying customer, thereby, missing out on some desired goods and services. Major online businesses only have a charge plate payment option due to its efficiency and, in relation distance and sometimes, due to the nature of products and services rendered. If all you have in your pocket is paper note, you’re limited to your immediate environment as far as buying and selling are concerned.

With plastic money, you have an extensive market experience to acquire goods and services within and outside your immediate surrounding.

Pitfalls (demerits) Sometimes, exploring the global market through that tiny plastic may not come without a cost. Concerns here are these: what about identity theft-sharing some vital information about yourself on the internet? How safe and secure are these online settlement menu requiring your gold card and personal details? Studies have shown that people lose several billions of dollars to online fraudsters when transacting through the internet. Well, to a traditional note carrier, the fear of identity and financial theft is removed as cash does not carry your identification.

Expanded Customer Base

 As a business owner, have you ever considered that accepting bank card is capable of increasing your customers and growing your business? Naturally, people favour convenience-having to buy goods and pay for it at a later date; even if it requires paying with interest. Though the financial capability of a customer may be a contributing factor for this;  it is yet considered customer support, when an individual can borrow more money to procure needed goods and services when the occasion demands.

Pitfalls (demerits) As a business manager, have you ever thought about who is responsible for the card processing fees. If this financial burden is shifted to customers, it then means extra cost on goods and services for your customers, which can discourage them. If the business shoulders this additional charge, the resultant effect is low profit for the businessman. However, a cash accepting business does not bother about charges emanating from plastic processing fees because cash transactions require no extra charges.

Financial Planning

 There is a general sentiment that going cashless has a high tendency of promoting fiscal prudence. Many people have corroborated this fact that they can manage their spending when they move about with fewer cash-that is; plan their finances better when they engage more in plastic credit enabled transactions.

Pitfalls (demerits) Researches have shown that people who do more of card transactions spend more and may not be a better manager of money. More so, the possibility of embarking on a spending spree by credit card customers are high because they are tempted to spend more as a result of having access to loan facilities via his or her charge plate. However, you can control your spending through cash as you can only spend what is available-that is financial discipline.


 Well, this may be a good reason to be a cardholder because you stand a chance to enjoy promotional and loyalty benefits from card producing companies such as visa, MasterCard and, online retail outlets such as amazons as encouragement for their customers.

As good as this may sound, local retail outlets don’t forget their patronizers too who pay in cash. They give them bonuses and reward them through some loyalty programs such as offering gifts and discounts.

In conclusion, in as much as buck and plastic options remain dominant payment options, nothing stops the two methods from operating concurrently as circumstances and convenience may be a motivating factor for employing any means of transacting business.

John Paul
John Paul
John is a full-time blogger and loves to write on gadgets, search engine trends, web designing & development, social media, new technologies, and entrepreneurship. You may connect with him on Facebook, Twittter and LinkedIn.


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