It’s probably safe to say that most people have been in that mortifying situation at some point in their lives. A table has been secured, the jackets are off and a round of beverages are on their way – all that’s left to do before settling down is to pay the barperson. However, the bill can’t be paid because that crucial trip to the ATM machine was overlooked in favour of taking a shortcut to the pub.
Luckily, that very embarrassing dash to the bank is becoming a thing of the past given that most places now accept credit or debit cards as payment. Indeed, many people now consciously don’t carry cash at all and rely purely on plastic payment when buying just about anything.
This, perhaps, is a sign that we are moving ever closer towards living in a cashless society. In London, many commuters use pre-paid travel cards such as the Oyster Card to swipe themselves swiftly through the barriers and, with pre-paid credit cards becoming an increasingly popular payment method for many shoppers, some predictions estimate that cash may close to obsolete within five years.
The future of paper and coin payments does look bleak when you consider that plastic is compulsory in many retail circles. Car hire outlets, for example, will only rent cars to drivers who can secure the vehicle with a credit card.
Furthermore, when checking in to a hotel, a credit card will often be requested as a form of security on the room, essentially protecting the hotel against people leaving without paying.
Whilst no payment is actually taken from the card, many guests don’t realise that a portion of the card’s balance is ‘reserved’ by the hotel, which essentially means that the overall balance on the card is reduced until check-out. So if a holidaymaker then decides to go on a shopping spree, or pay for a meal with the card, they can often be left red-faced when the card is rejected.
Nobody likes to go on dish-washing duties when on holiday, which is why many people opt to carry more than one credit card, just to be on the safe side.
However, cards can often be rejected because a person has genuinely spent up to the limit on their credit card. If this is the case, it may be worth considering switching providers and take advantage of 0% interest rates for up to a year, which essentially means a lot of money is saved as the card’s balance is gradually reduced.
For now, cash still has a significant role to play in the retail world. But there can be little doubt that we are moving ever-closer towards living in a cashless society. So we may as well embrace it!
Daniel Collins writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.