Banks and credit card companies have a vested interest in convincing consumers to convert to going cashless. In 2011, credit card issuers reported $154.9 billion of revenue, A separate study from the same firm said that in 2011, fee income surpassed interest income for all issuers of cards (including credit, debit and prepaid cards). Though down from previous years due to new federal regulations, overdraft fees totaled $31.6 billion in 2011
For banks, less consumer dependence on dollars and coins means greater potential to collect fee income, the likelihood of fewer people visiting bricks and mortar bank branches and a diminished need for staff to handle more intensive cash-based transactions. For financial institutions, these various payment innovations are a source of profit,"Cash is the least profitable [source of payment], and it's a lot of hassle.
They whole idea is to support small business. Local first, then if not available, state, then regional ect. Keeping the velocity of the local money supply circulating as close to your community as possible and not letting it be diverted into the financial sector as profits for investors of big box stores who do not spend it here.
Use cash!!! The transaction fees merchants pay for every purchase with a credit or debit card drain the local money supply almost 2%.
A great point.
Profits are Profits. It is just where they go that matters
Money is the blood of a local economy. It needs to circulate. Flow through the community to create a velocity. Big chains like Wal mart are needles in the vein. Draining the local supply of money and diverting it into the finacial sector in the form of profits to their investors The exchange? Local business having to compete by slicing margins and lowing wages. The ones that can not close.. Low paying jobs at the Big Box and cheap imported goods for all these people to purchase from the store that caused the problem. Local communities turning into "clone" towns or ghost towns. The simple fact is that we have become a nation of low wage service providers and we need an economic and social framework that will help us reclaim the skills and potential of nation of high paid producers. Buying local is one way to get back on track. If no one buys their products, invests in their stock or works for them, they will go away.
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