Best Credit Card Offers specially for you

About Us  |  Contact Us  |  Articles  |  News  |  Tips  |   Tools
ADVERTISER DISCLOSURE
RequestCredit.com is an independent, advertising-supported web site which is compensated by the credit card issuers whose offers appear on the site. This compensation may impacts how and where the credit products appear on our site, including, the order in which they may appear within credit product lists. RequestCredit.com does not review or offer all available credit products.

Cash Usage Slips as Cards Gain Popularity for Small Purchases

[Saturday, April 9th, 2016]

It used to be that when folks bought something small, they always paid with cash. In fact, many places wouldn’t accept a debit or credit card payment for an amount under $10 or so. But while that’s still true in some stores, it’s becoming more and more common for people to pull out the plastic for purchases under $5.

That’s according to a recent report that shows card payments gaining on cash, even for small purchases. About 60% of survey respondents reported that they usually pay for a purchase under $5 with cash, but almost 40% use a card. Twenty-seven percent said they’d use a debit card for a purchase under $5, and 11% said they prefer to use a credit card. Overall, cash usage has fallen seven percentage points in the last two years. Debit card use is up by five percent, and credit card usage is static.

Age makes a difference in payment preference

Looking at the demographics, younger folks are more likely to pay for purchases with plastic, while folks over fifty prefer cash. In fact, they strongly prefer it—74% of the over-fifty set said they prefer to pay with cash when the amount of the transaction is small. Millennials—those ages 18-34—prefer debit (46%) or credit (18%), while people 35-49 generally prefer cash (41%).

There was a geographic element to people’s preferences, as well. Seventy percent of rural cardholders said they’d rather use cash for small purchases, while city-dwellers were more comfortable using credit cards. Only 59% or urban inhabitants and 54% of suburbanites preferred to use cash.

Residents of the Northeast and Midwest also vastly preferred to pay with cash, compared with people in the West, where only 46% were fans of cash payments.

People with higher incomes tended to shy away from cash, while lower-earners preferred to pay using cash instead of a card.

Credit cards offer purchase protection

One reason that credit is becoming more popular, according to the survey, is that credit cards offer more protection against fraud and identity theft. They also offer purchase protection in the form of extended warranties and price matching guarantees, as well as incentives like reward points and cash back.

The survey included telephone interview responses from over 600 adults living in the United States. All of them held major credit cards. The survey was conducted in March 2016.

Read also

US Bank Now Offering Mobile Payments For Visa Commercial Cards
[April 15th, 2017]

US Bank corporate cardholders will be able to pay for transactions via Apple Pay, Android Pay, or Samsung Pay with their Visa cards, thanks to new functionality that makes US Bank the first financial institution to offer mobile payments for Visa commercial cards.

Continue reading ››

FICO Wins Cybersecurity Award
[March 3rd, 2017]

Online security has been a hot button issue ever since the advent of the Internet. The impact of cyber crimes greatly affects not only consumers, who may lose their identities and/or their resources, but also retailers, who lose customers and employee hours to dealing with the aftereffects of these crimes.

Continue reading ››

Partnership Between Credit Union and Elan Services Expands Credit Options
[January 16th, 2017]

Houston credit union PrimeWay Federal has partnered with Elan Financial Services to provide members with credit card products and services.

Continue reading ››
Copyright © 2003-2017 RequestCredit.com. All Rights Reserved
RequestCredit.com strives to keep credit card information up to date and accurate. However, all the credit card information is presented without warranty and can be changed by the credit card issuers at any time. Click the "Apply online" button to see the online credit card application and to review current credit card terms and conditions. Note that RequestCredit.com can be compensated by credit card issuers when the visitors apply for a credit card through the website.
* The RequestCredit.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. RequestCredit.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the RequestCredit.com website are property of their respective owners.
Information in these articles is brought to you by RequestCredit.com Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.