Tuesday, May 21, 2024
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Cash is King!

Why should we pay everywhere with cash instead of bank cards?

 

– I have a PHP 100 note in my pocket and I’m going to take it to a restaurant and pay for my dinner with it.
The restaurant owner uses this P 100 to pay his bill at the car wash.
The car wash owner pays for his haircut at his hairdresser.
The hairdresser uses this PHP 100 to pay the cashier at the supermarket.
After an unlimited number of payments, my 100 note retains the same meaning that it has served its purpose for all who have used it as payment and the bank has no work or interference in any expenditure.
BUT WHAT.
– IF I now go to a restaurant and pay digitally with my bank card,
– the cost of my digital payment charged to the restaurant owner, including transaction costs as a percentage is on average 2.5% which then works out to P 2.50 for each subsequent payment transaction.
(This means that each next payment transaction costs P 2.50)
– the same costs are implemented when the restaurant owner pays his bill digitally at the car wash,
– the car wash owner’s payments at the hairdresser’s,
– the next payments too, and so on.
Therefore, after the first 36 transactions, only P 10 of that P 100 remains and the remaining P 90 has become the property of the bank…. Thanks to all the digital transactions and fees!
Moreover, if the cost of a debit card averages P 10 per month for renewal and other fees, so your P 100 is nothing worth after one month.

Cash is king!

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