Paying by Cash or Card? The Advantages and Disadvantages

Cash 

Advantage: Easier control over your spending

Paying by cash means you will know exactly how much money you have available to spend. This helps you keep track of your spending and helps you decide whether or not you can actually afford it.

Advantage: Does not disclose your identity

If you look at a bank card it will contain your name, account number, sort code and the expiry date of your card. All of this information can be used by fraudsters to steal your identity and use your bank account to pay for things.

On the other hand, cash changes hands so often it would be silly to have your name

Disadvantage: Cannot be used online

Online shopping requires a credit/debit card or another online payment system such as PayPal.

Disadvantage: Heavier to carry

Having a purse/wallet/pocket full of notes and coins can be quite difficult. It is also slightly risky to be seen to be carrying a significant amount of cash. Sadly, if your wallet is lost or stolen the cash is gone forever.

Card

Advantage: Easier to carry  

Carrying a card around is a lot easier (and lighter) than carrying a wallet full of money. You can even carry your card inside your phone case.  

Advantage: Keep track of transactions 

If you receive bank statements or use mobile/online banking you will be able to see all of your transactions including the amount of money, date and where the money was spent. 

Advantage: Proof of purchase 

Your bank statement can count as proof of purchase in a store if you lose your receipt. This makes returning items easier as many stores require some form of proof of purchase if ever return something.

Disadvantage: Troublesome if you lose your card

If you lose your card you will need to contact your bank to cancel it and arrange for a replacement. You may also need to change your online banking passwords.

Disadvantage: Some businesses don’t accept card payments

Despite signs that we are heading towards a cashless society, there are still some businesses that do not accept card payments. Examples of cash only establishments include small independent businesses or contractors such as builders, gardeners etc.