VISA’s War on Cash

[BOP]

It seems like more and more retailers are going completely cashless these days, only accepting cards and digital payments. But is that even legal? I mean, it says on the bill, “This note is legal tender for all debts public and private.” In today’s video, I’ll explain why some stores are going cashless, why it’s totally legal, and what you can do about it.

 

[OccamsRazor]

While this may be occurring more in the retail sector, I can say that there has been a war on electronic payments using credit cards. More and more companies are forcing people to use their bank accounts (account and routing number) or checks to make payments. No more auto-pay with credit cards. This means they bypass the fees of the CC company. It also means those of us that get reward points cannot get them for bill payment anymore. The funny part is that some of these companies are actual credit card companies. Credit card companies will not allow you to pay your bill with a (different) credit card

 

[HemiHauler]

I’d be curious to see some analysis on the costs of processing fees for cards vs the cost of handling cash, which includes the risks of handling for businesses. Cash is risky for businesses, nighttime deposits, armed robberies, etc.

As far as restaurants go, pretty sure it’s federal law that if you offer sit-down service, you must take cash. If not federal, lots of states have laws like that.

As far as @OccamsRazor ‘s point about not being able to use credit cards for autopay, I suspect that has more to do with the fact that in many cases, those are actual cash advances (not a purchase) which generally come with high fees. Maybe not a lot of people do that, and they are just phasing it out. As far as paying mortgages or other credit card bills with a credit card, another element is that they don’t like you going into more debt to satisfy another debt. Might even be some rules around that, not sure. O auto pay everything on a card. Only one charges me an extra 2% and I’m happy to get the points.

I really don’t use much cash anymore. Good travel rewards plus extended warranties, better rental car insurance (not that you can rent a car without a card to start with) are just too compelling. Last half dozen times I’ve flown it was all on point redemptions, including business class seats on two international flights.

But at the same time, if I go to a business that is cash only, I assume they are just trying to cheat on their taxes which I’m happy to support, assuming I have cash on me.

When I was working in Belgium 20 years ago, many of the green/farmers markets in the town squares were already card only. Europeans been complaining about this for quite a while too.

If you don’t know the sorts of shenanigans that FINCEN are involved it, you should look into it. Fun stuff! This is probably the real reason - no cash means no privacy.

 

[OccamsRazor]

As far as @OccamsRazor ‘s point about not being able to use credit cards for autopay, I suspect that has more to do with the fact that in many cases, those are actual cash advances (not a purchase) which generally come with high fees. Maybe not a lot of people do that, and they are just phasing it out. As far as paying mortgages or other credit card bills with a credit card, another element is that they don’t like you going into more debt to satisfy another debt. Might even be some rules around that, not sure. O auto pay everything on a card. Only one charges me an extra 2% and I’m happy to get the points.

Personally, for me, I have had my Car Insurance company, Cell phone carrier, and another credit account force me to move from auto-payment via credit card (with cash back) to using my checking account for payment. All this within the last 6-8 months. Some will still accept CC payment with a FEE though. Still, seems like companies are unwilling to accept the CC surcharges for transactions anymore and are pushing it back on the consumer (like everything else)

 

[HemiHauler]

Personally, for me, I have had my Car Insurance company, Cell phone carrier, and another credit account force me to move from auto-payment via credit card (with cash back) to using my checking account for payment. All this within the last 6-8 months. Some will still accept CC payment with a FEE though. Still, seems like companies are unwilling to accept the CC surcharges for transactions anymore and are pushing it back on the consumer (like everything else)

That is interesting. I’m a T-Mobile customer and pay on my card, and haven’t heard anything.

If they want to charge me more to cover their fees, I’m OK with that because rewards points.

I have no idea why, but I still write checks for all insurance products, auto, home, personal umbrella, long-term-care, etc.

 

[Kyle]

Personally, for me, I have had my Car Insurance company, Cell phone carrier, and another credit account force me to move from auto-payment via credit card (with cash back) to using my checking account for payment. All this within the last 6-8 months. Some will still accept CC payment with a FEE though. Still, seems like companies are unwilling to accept the CC surcharges for transactions anymore and are pushing it back on the consumer (like everything else)

Verizon has a partnership card that you can still use for auto-pay. I'm still using a CC for everything from Internet, TV and utilies to groceries on a card.

SFSG, they haven't balked.

 

[vraiblonde]

The only thing I still pay manually is my credit card bill. Everything else - rent, car payment, etc - goes on the card, which I pay in full every month so I get truly free things with my points.

I'm looking for cc companies to start penalizing people like me that they don't make any money off of and still have to give points.

 

[Gilligan]

When I was working in Belgium 20 years ago, many of the green/farmers markets in the town squares were already card only. Europeans been complaining about this for quite a while too.

I'm in Norway often....its probably been 4-5 years since I bothered to hit the exchange for any NOK; simply no need for it..

 

[Kyle]

I'm in Norway often....its probably been 4-5 years since I bothered to hit the exchange for any NOK; simply no need for it..

Their currency looks like the rainbow coalition flag.

 

[Tech]

Verizon has a partnership card that you can still use for auto-pay. I'm still using a CC for everything from Internet, TV and utilies to groceries on a card.

SFSG, they haven't balked.

Verizon gives me a $10 discount per line to auto pay by checking transfer in lieu of a credit card.

 

[DaSDGuy]

I purchase large items using Best Buy credit card and receive cash back. I pay the Best Buy bill in full a few days before the minimum is due using a credit card that gives me points. I pay that card off in full before the minimum is due with electronic transfer from an account I only use to pay cc

No interest accrues, I get cash back from Best Buy and Cash Back points on my credit card.

 

[Merlin99]

So I was listening to the progressive channel on Sirius yesterday and one of the more weasely progs went on and on for over an hour about the new SOH, Mike Johnson, not having a bank account. It was inconceivable that anyone could survive without a bank account. Personally if I could find a way to live without a bank I would. I don't have a reason to worry, but I just don't like the government knowing to many things about me.

 

[Ken King]

So I was listening to the progressive channel on Sirius yesterday and one of the more weasely progs went on and on for over an hour about the new SOH, Mike Johnson, not having a bank account. It was inconceivable that anyone could survive without a bank account. Personally if I could find a way to live without a bank I would. I don't have a reason to worry, but I just don't like the government knowing to many things about me.

He says he does have a bank account, but it is a non-interest bearing account and not subject to reporting. Here are the reporting rules - https://ethics.house.gov/sites/ethi...ted Final Combined 2023 Instruction Guide.pdf

 

[herb749]

Verizon gives me a $10 discount per line to auto pay by checking transfer in lieu of a credit card.

I got the same thing .

 

[Kyle]

 

[Tech]

View attachment 173632

Locations may vary.

 

[Merlin99]

Back in the old days in the Philippines, the girls would take Visa cards by putting the card on the table, putting the carbon paper over that and sliding a heavy ash tray over the whole thing.

 

[WingsOfGold]

Back in the old days in the Philippines, the girls would take Visa cards by putting the card on the table, putting the carbon paper over that and sliding a heavy ash tray over the whole thing.

In my day a Hershey bar or pack of Salems was key to the city or anything else you wanted.

 

[Tech]

Insert or swipe?

 

[OccamsRazor]

That is interesting. I’m a T-Mobile customer and pay on my card, and haven’t heard anything.

Hmmm. I am also a T-mobile customer and they were the FIRST to force me to use my checking account and dropped me from using my CC as payment. Was notified with a letter saying that if I continued ot use my CC, I would be charged an additional $10/month per line.
Might want to check your statement.