Pocket Change In A Plastic World

This is a very good question for discussion, and I'll voice my Two Cents. :) Please keep the following in mind when reviewing my thoughts: I work in IT, have to work with IT Security on a regular basis, and am part of the younger generation that is notably "plastic happy" when it comes to payment.

I think "negate" is a strong word. Having consulted to the U.S. Government, I can tell you that an Act of Congress would be required to make such a drastic change, and even then the debate around it would likely be on par with what is surrounding the US Postal Service. The U.S. Mint wouldn't decide this act on their own...it would be like 500-1000 individuals suddenly saying their work isn't valuable...and that is definitely not the mindset of a federal employee.

But I take a step back even further. I pay with coins and bills on a regular basis, especially when I travel, and while the use of plastic is very pervasive, I think there is a notable number of "old school" folks out there as well. Each time you swipe your debit card, you open yourself up to a risk of your information being fraudulently compromised. Sure, Payment Card Industry (PCI) Standards exist to protect your card information, but your information will never be 100% protected. From hidden card swipes to software and hardware exploitation (such as getting your card information from the database it is stored in after the swipe takes place), there are various ways to get to your information. Even though I protect myself as best I can, I had to recently protect against my card from being fraudulently used all the way over in Japan on a U.S. military base (I've never been to Japan). Sure, you can resolve the issue and sometimes do it quickly, but it's still a headache.

I would personally recommend against swiping cards for anything less than $10 due to the risk you open yourself up to from the frequency of such transactions, but that is just a personal recommendation. If you swipe regularly, I would recommend keeping a VERY close (such as daily) check on your banking account balance, and ALWAYS choose the "Credit" option if you can so that the system you are working with can't get your PIN number.

to you too, TallTitan!

You raise good points. I too am in the IT field in the financial industry and have plenty of first-hand experience with the joy of PCI compliance. And yes, no one should ever think their data is completely safe. We try, but someone with enough talent, time, tools, and desire will figure out a way. Many of my older relatives refuse to use their CC's on web sites and still pay their utility bills with paper checks.



Good advice, but I'd add that everyone should do this regardless of how often they use plastic.



Most banks are issuing cards with chips on them now which helps prevent that, but only if the retailer has the equipment to support chip technology.

It would be unrealistic to think that hard money will survive into the future. Might take another 100 years, but money is going away. Heck, I'm pushing 60 and don't spend any more cash than the OP. Why bother with the hassle of carrying cash?

The Mint will react when the government realizes how much money is to be saved by consolidating legal tender issues. I don't see that taking another 5 years; chances are the next Administration will be addressing the issue. There are 9-figure sums annually to be saved by consolidating Mint issues for circulation.

As you can see, I am not an economist. I have had only one economics class (I was required to take it) and I learned very little in that class, and learned absolutely nothing about how economies work. That may change next semester in college...

As a person running a small business I can tell you that 90% of our customers pay with plastic. To start with anyway. But as a business owner, I hate plastic. My fees amount to about 3% of sales (they tell you its only 1.66%, but by the time they add in all of the other fees it averages 3.2% for me- and for those who don't realize it, all those rewards cards, it's the merchant that pays you those rewards points) So we offer an extra two percent rebate via wooden dollars to people who pay cash, which is enough to get a lot of regulars to make a point of getting cash to pay us.

I'm close to you with all that electronic stuff. My Son too never uses cash. I love my credit card that gives me from 1 to 3 % back on everything. And then it gets automatically transferred to an account and again is given 50% more. Just can't see using cash anymore.

I am addicted to using plastic for the points and keeping a close eye on my account.

I was raised to always have some cash on hand and almost always do. In an emergency cash can come in handy. While some of the the new technologies we develop are great; some are just an excuse to be lazy and come with all sorts of security risks associated. Plus lets be honest here; were not talking about brain surgery or building rockets. Its not like having and using cash is some sort of great burden or complication and my life is suddenly so much easier with Apple pay for example.