refusing to accept cash

Page 8 of 8« First<5678
November 25th, 2017 at 11:21:27 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 764
Posts: 9031


Ted talk about dangers of cashless society.


I recently completed an unsanctioned, unsupervised psychological experiment on my children. The premise of which was $10,000 in cash on the kitchen table and a sign next to it that said, “Don’t touch the money yet!”

And before I dive into it, you should know that we are a game playing family. We play ball games, board games, dice games, card games; we play all sorts of games. But the games that my children love to play most are games like Monopoly. And when they play Monopoly, they play marathon games of Monopoly that last hours and hours over days of play.

Each of my kids has a unique strategy and personality when they play Monopoly. My daughter who is 11, she is always the dog. She plays entirely for chance and community chest cards. You could say that she uses the luck strategy. My 9-year-old son is always the car, a very strategic player. He buys all of the railroads and all of the utilities and then proceeds to put houses and hotels on the most expensive properties; very savvy. And then his younger brother who is seven, he buys everything that he lands on with no exception, which is fitting because he is the wheelbarrow.

Now before I tell you how my experiment unfolded, first, I have to share an observation that led me to the creation of it. One Monopoly Marathon, Saturday morning I was playing with my kids and noticed that they were all playing just outside of the rules of the game. So they were doing things like buying each other out of jail and lending each other money to buy properties. And I found myself going, “guys, this is not how this game is played”, to which they would say, “Dad, it’s fine. We just want her on the board with us”, or “he can pay me back at the end of the game when he’s flushed with cash”. And I’m thinking, again, “What am I teaching these kids?”

So I started watching how they were playing, listening to their banter, getting a feel for how they were making decisions. And I had this thought: what if they’re playing this way because the money isn’t real. And it’s this concept, I’ve been reading a lot about lately it’s called financial abstraction, the notion that when money becomes more and more of an idea, less tangible and therefore more abstract, it changes the way that we interact with it on a regular basis. And there’s anecdotal evidence of abstraction everywhere around us. All you have to do is listen carefully to people who say, “I loaned my child or grandchild the phone and a month later I had all these errant in-app charges showing up on my bill.

In 2014, Apple reimbursed customers for in-app purchases that were unapproved, mostly by children to the tune of $32.5 million. This is in a US Federal Trade Commission settlement. In the documentation it said, “It was just too easy for kids to make an in-app purchase.” The Imagineers at Disney were charged with making the parks frictionless, it’s what they called it. So they invested $1 billion in a magic band, a wearable device that functions as your room key, your park ticket and your ID and wallet when you’re on park property. So if your child wants a set of ears and they want a desert in a magic kingdom, Bibbidi-Bobbidi-Boo, your vacation just costs a whole lot more, magically, magically.

Last but not least, I had a conversation with some teenagers who told me that $100,000 a year really wasn’t that much money. And I said, “Really? Why do you think that?” They each said, “Well, we both have $500,000 in our ATM machines on Grand Theft Auto, which is a very popular and somewhat skeptical sketchy video game popular today.

So as I’m playing with my kids and I’m watching them play, I’m listening to them talk about this, I thought: what if the money were real on the table, would they play differently? And so I calculated real quickly on the box: how much would it take in capital and currency to play a physical game of Monopoly with my kids that they actually tangibly got to feel the money in their hands? And I estimated for four or five players, that’s about $10,000 US dollars.

So one Friday I stopped at the bank, I got all the denominations of bills you would get on the Monopoly board, with the exception of a $500 bill, hard to get. And one Sunday, I rounded the family up for a high-stakes game of Monopoly where the winner takes all — all of $20 — by the way, all of $20. You have never seen kids’ eyes light up the way mine did when I handed each of them $1500 in starter capital. And you have never seen anyone’s eyes light up like my wife’s when I took it back on Monday, all of it.

My youngest son, the wheelbarrow, did not buy everything that he landed on. Instead, he carefully calculated how many rolls away he was from one of his brother’s properties and how much he would owe his brother if he landed on said property and made his decisions based on that. In effect, having real money on the table and a cash prize at the end made him more conservative.

And my middle son, very strategic, still bought all of the railroads, still bought all the utilities but did not buy Boardwalk and Park Place or Mayfair in Park Lane. But instead he put hotels immediately on Oriental and Baltic Avenue or Coventry in Leicester Square on the UK version. And when I asked him why he did that, in his own words he said, ‘Dad, they’re just more affordable properties,” Right? At which point I cried a tear of pride. He got it.

In the end, my son finished with 28 properties, more cash than he’d ever seen in his entire life and held, and he now knows the meaning of the phrase “making it rain”. Look how happy he is, and now annoyed as brother and sister are.

So in the confines of my experiment there is an idea worth spreading and it is this: I believe that kids today are being raised in a world where money is no longer real, it’s actually an illusion but it has very real consequences. Peter Drucker, famed leadership guru said that banking and finance industries today are less about money and more about information. And yet, young people today don’t get that information, they don’t get the experiences of money early on.

Three researchers from the Center for Creative Leadership in a study done two decades ago, that’s been replicated many many times over, they interviewed over 200 executives in a report called Key Events in Executives’ Lives. And in this report, they found that of the 200 top-level executives who were the top of their game, all of them had similar characteristics, and one of them was that early on in their career they have been thrust into a leadership role that required them to make decisions that had serious consequences. They also had a mentor in place that helped them appreciate the lessons they were supposed to learn from those experiences. The study created a leadership framework that basically said in essence that someone with potential, if given the opportunity to engage in strategically relevant experiences and given the ability to learn the lessons from those experiences, would have a higher likelihood of success in their career in a leadership capacity.

Now if you took that study framework and my $10,000 experiment and you looked at it through the Kaleidoscope, you would get a statement like this: If kids are given financially relevant experiences in their life and someone is there to help them learn the lessons from those experiences, they have a higher likelihood of achieving financial success later in life. And in my humble opinion, they need to have them early and they need to have them often.

We are under this not-so-subtle societal shift in the way that we pay each other today. It’s estimated that there are trillions of dollars circling the globe in our global economy every single day, yet only 4% of that money is actually in coin or currency, the rest is all digital, data packets: 1’s and 0’s. And today’s digital native youth they don’t see people paying with cash or checks. In fact, if ever you’re in a line and someone in front of you pulls out their checkbook to pay, you are liable to save yourself really a checkbook, this is going to take forever. You’re laughing because it’s true.

The currency of today is digital. Many of these kids equate spending with credit and debit cards with Google Wallet and Paypal and Zap, right? All of these are what they equate spending to and by the way I am NOT pooh-poohing the technological advancements in payment technology today, far from it. I think tokenization and randomization and biometrics are the wave of the future. The first time that I used Apple Pay, it was like showing the caveman fire. It was amazing! But what snapped me back to reality was hearing my son behind me say, “I sure wish I had a phone so I could buy stuff.”

You see, money to a young person is somewhat abstract anyway. And when we further the abstraction by waving a magic band or putting our phone over a sensor and giving the thumbprint, all it does is it furthers the abstraction. It’s actually a recipe for financial disaster later in life to the uneducated, because to a young person they see money as limitless, because they have no concept of the back end until it comes around to bite them in the back end. I’ve seen this firsthand in my work with university students, young people that borrow and spend untold amounts of money having no concept or understanding of the increase in payments, the decrease in lifestyle and the challenges they’ll face later on.

In the UK and the U.S. student debt is a ballooning problem. In the U.S. we are at $1.2 trillion in student loan debt, second only to mortgage debt in the U.S. One in three students are delinquent, one in five are in default. It’s a huge problem. And the reason that this is concerning for all of us as a global economy is this: Dun & Bradstreet found that people spend 12% to 18% more when using credit cards over cash. They have yet to do a study: how much more will spend with a magic band or a phone, but I can imagine it would be 15% to 20% or 18% to 25% and all you need to do is read the headlines in the newspapers and magazines across the world today, places like The Guardian and The Washington Post, Fortune and Forbes, these are the headlines we’re seeing: new consumer debt reaching a seven-year high in the UK; consumer debt hitting an all-time high in the US; choking on credit card debt, the credit card debt crisis, the next economic domino.


And what happens when people overspend and they get in over their head with money, unfortunately the money charity says that in the UK right now one person every five minutes and three seconds is either declared insolvent or bankrupt. To put this into perspective, since I started speaking today, two people in this country are declared bankruptcy. In the UK, DMOZ.org says that Americans aged 25 to 34 have the second highest rate of bankruptcy. 25 year olds! And the question on everyone’s mind should be why — why is this happening? And in my simplistic view it is this, because the money they’re spending isn’t real, it’s an abstraction.

So to stem this tide with the next generation we have to bring them up to understand that they are living in a world where they have to make very real money decisions in a world where money is largely an illusion but has very very real consequences. Because I want your children and mine to be super successful financially, consider any of the following: If you’re going to spend money on children, give them a set amount of money and let them spend it, let them tangibly feel the money go through their hands, let them succeed or fail with minor consequences, so that later in life when they’re making major decisions, they understand there are major consequences that go along.

For older kids, it’s this: set a budgeted amount for school clothes and supplies and what have you, and give them that amount of money and when they are done spending it, it’s done. And here’s the key: they get to spend it with your subtle guidance, your subtle mentorship, your subtle supervision, and whether you call it an allowance, you call it chores — commission for chores or you call it a weekly stipend, every single child from the age of five on and up, needs to be given some tangible amount of money on a weekly basis so that they understand how to function in a cashless society someday. Better to teach young people the habit of saving when they have a little bit of money to save, then try to teach savings when they have no money because they’re in over their head.

I met an American named Jose who was a 20 year old student at an American University. He was the child of two Cuban-born parents and at the age of 15 his parents told him, “Jose, we will give you food, we will give you shelter and we will give you $50 a month but the rest is up to you.” And I asked him what was that like. He said, “Clothing, toiletries, school supplies, entertainment, gas, it was all on me. I resented my parents for a year.” And then he said, “but you know what I realized it was the single best thing they could have ever done for me.”

When I met Jose at 20, he was on a full-ride scholarship at the University he attended. He had $20,000 saved in a savings account from working part-time in high school and this kid exuded financial prowess and unmistakable leadership potential.

At the heart of my message today is this: it does not take a $10,000 board game and it doesn’t take cutting kids off financially to make a difference. The first step is honestly quite easy: it’s about educating the next generation to make decisions in a world where money is largely an illusion but has very very real consequences. And the reason it’s so important for all of us as a global society to do this is this next generation coming up will inherit the global economy that we are handing to them and we will precariously place it on their shoulders, we owe it to them to set them up for financial success.

Thank you.
November 25th, 2017 at 12:26:22 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 50
Posts: 5269
So I started watching how they were playing, listening to their banter, getting a feel for how they were making decisions. And I had this thought: what if they’re playing this way because the money isn’t real. And it’s this concept, I’ve been reading a lot about lately it’s called financial abstraction, the notion that when money becomes more and more of an idea, less tangible and therefore more abstract, it changes the way that we interact with it on a regular basis. And there’s anecdotal evidence of abstraction everywhere around us.
................................................................................................................................................................

Particularly in a casino where its "nickels and dime" and chips(cheques) instead of "real" money and its "I'm playing with the casino's money" after you've been on a roll for awhile. That A Girlhood Amongst Gamblers autobiography by a woman who later became a quant in New Jersey rather than a poker player emphasized the point that while there was a variety of card games, the rules were always enforced.

Chrysler became the sixties darling of wall street because of its information about warranty expense. Boeing rebounded because of its wealth of data on every item about hulls and engines and take offs and landings etc. Information is usually the key but at some point information about your student loan is meaningless, its the dollar amount that takes its toll.
December 26th, 2017 at 11:20:45 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 50
Posts: 5269
/. reports that MidTown Manhatan is already a place where merchants routinely refuse to accept cash.
December 26th, 2017 at 12:12:31 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 105
Posts: 7353
Quote: Fleastiff
/. reports that MidTown Manhatan is already a place where merchants routinely refuse to accept cash.


There is going to be a new restaurant in Pittsburgh that takes no cash except for at the bar (I think.) Going to be some kind of new concept place, but seems they do not want the slowdowns since it is in an area where the lunch rush is pressed for time.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
December 26th, 2017 at 12:45:36 PM permalink
Nareed
Member since: Oct 24, 2012
Threads: 332
Posts: 11968
Well: http://www.outsidethebeltway.com/what-happens-when-a-business-wont-accept-cash-for-payment/
If Trump where half as smart as he thinks he is, he'd be twice as smart as he really is.
December 26th, 2017 at 12:57:04 PM permalink
OnceDear
Member since: Nov 21, 2017
Threads: 2
Posts: 369
Quote: Nareed
Slightly different in the UK. If served without any explicit restriction on payment method, and one tenders legal currency, the vendor might refuse to accept payment in cash, but they can then go whistle if they try to pursue payment through the legal system.
December 26th, 2017 at 3:22:34 PM permalink
Nareed
Member since: Oct 24, 2012
Threads: 332
Posts: 11968
Quote: OnceDear
Slightly different in the UK. If served without any explicit restriction on payment method, and one tenders legal currency, the vendor might refuse to accept payment in cash, but they can then go whistle if they try to pursue payment through the legal system.


One time I made a transfer to pay a credit card. It turned out the bank refused the payment. So I tried to pay with a check, to have a paper trail, at a branch, but they told me they don't take checks from other banks on Saturdays.

I was so mad, I got cash off the ATM nearby, paid in cash and demanded the credit account be cancelled on the spot.
If Trump where half as smart as he thinks he is, he'd be twice as smart as he really is.
December 27th, 2017 at 7:50:44 AM permalink
OnceDear
Member since: Nov 21, 2017
Threads: 2
Posts: 369
Quote: Nareed
One time I made a transfer to pay a credit card. It turned out the bank refused the payment. So I tried to pay with a check, to have a paper trail, at a branch, but they told me they don't take checks from other banks on Saturdays.

I was so mad, I got cash off the ATM nearby, paid in cash and demanded the credit account be cancelled on the spot.
That's pretty crazy. In my wagering with folks in the US, I get the impression your banks are in the stone age in some ways. In the UK, I can go online and set up a payment to any UK account holder and send them up to 10,000 within about one minute, free of course. Cheques are almost completely dead here. With credit and debit cards, I can spend up to £30 in a store or bar, just with contactless tap and pay. No signature, no pin, just trust and a real good back end banking infrastructure.
December 27th, 2017 at 1:05:10 PM permalink
Nareed
Member since: Oct 24, 2012
Threads: 332
Posts: 11968
Quote: OnceDear
That's pretty crazy. In my wagering with folks in the US, I get the impression your banks are in the stone age in some ways.


Actually they're pretty damned good with most services. I wrote a post about it some months ago ( http://diversitytomorrow.com/thread/2004/0/ ).

That particular bank is terrible. It's owned by Citibank.
If Trump where half as smart as he thinks he is, he'd be twice as smart as he really is.
December 27th, 2017 at 3:45:50 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 764
Posts: 9031
Quote: OnceDear
With credit and debit cards, I can spend up to £30 in a store or bar, just with contactless tap and pay. No signature, no pin, just trust and a real good back end banking infrastructure.


It depends on the state in the USA and on the store. Stores in some states will let you go up to $50 with no signature, and other states want individual identification for a $15 purchase.



Quote: AZDuffman
There is going to be a new restaurant in Pittsburgh that takes no cash except for at the bar (I think.) Going to be some kind of new concept place, but seems they do not want the slowdowns since it is in an area where the lunch rush is pressed for time.


According to the 2016 U.S. Consumer Payment Study, 5 percent of those between 25 and 34 years old use cash. And 99 percent of consumers with a household income over $100,000 use credit or debit for purchases. So most fine dining don't alienate a lot of customers by refusing cash.

In the article below regarding one cash free restaurant the manager admits “International guests can sometimes be charged more to pay with a credit card. If this happens, we let guests know, and one of us will put the bill on our personal card and let them pay in cash.”


http://www.restaurant-hospitality.com/operations/restaurants-make-shift-cashless-payments
Operators share why they chose to ditch the cash for a plastic-only operation
Liz Barrett | Jul 21, 2017

Credit and debit cards have been America’s preferred methods of payment for years. But recently, mobile payments and credit card perks have boosted cashless spending even more.

According to the 2016 U.S. Consumer Payment Study, conducted by TSYS, 40 percent of Americans prefer to pay with credit, 35 percent opt for debit and 11 percent choose to pay with cash. When broken down by age and income, 5 percent of those between 25 and 34 years old use cash. And 99 percent of consumers with a household income over $100,000 use credit or debit for purchases.

The cashless trend is quickly spilling over into the restaurant industry, with some operators eschewing cash altogether.

“We were motivated to go cashless by Uber, which digitizes everything,” said Thomas Nguyen, co-founder of five-unit, Houston-based Peli Peli Restaurant Group, which runs two of its fast-casual locations and a fine-dining restaurant cashless.

Peli Peli alerts guests via a sign on the door and at its main payment station that cash is not accepted at the restaurants.

“Once we explain the cons of cash to our customers, such as how dirty it is and how much faster the order line can move without it, they usually understand the motivation behind going cashless,” Nguyen said.

The restaurant Sunday in Brooklyn, located in Brooklyn, N.Y., has been cash free since it opened last year. Speed was the reasoning behind the decision.

“We always try to find ways to make our team more efficient and focus their time on important things like taking care of our guest,” said partner Adam Landsman.
Ultimately, it’s simply faster to swipe a card, and the restaurant does so tableside.

“The bartenders don't stay hours after their shift trying to reconcile their banks. The same goes for the managers and our accountant,” he said.

Nguyen agreed that restaurants spend an enormous amount of time counting cash, and noted that safety is also a concern.

“It’s not safe to hold that much cash in the restaurant or have to transport it to the bank each day,” Nguyen said. “Being cashless is safer for everyone, and it also minimizes the incidence of employee theft.”

Landsman noted that most customers prefer to pay with a card anyway.

“The business pays more in credit card fees, but the time saved by using the credit cards is worth more,” he said.

The cleanliness, safety and support benefits come along with running a cash-free operation, Landsman pointed out.

“Cash is very dirty, and we handle food,” he said. “We also eliminate the worry over carrying cash tips home late and the potential loss of money throughout the day. Plus, if there’s ever an issue with a check the next day, it's easy to see what happened and correct it quickly.”

Nguyen also expressed concerns over handling money in an environment that serves food.

“Cash has been handled by thousands of people,” he said. “No one really thinks about how dirty it is to have money around our food.”

While nearly 90 percent of consumers have made the switch to plastic, there are still some customers who prefer to pay in cash.

“International guests can sometimes be charged more to pay with a credit card. If this happens, we let guests know, and one of us will put the bill on our personal card and let them pay in cash, so they don't have to worry about it,” Landsman said.

Nguyen said not everyone is ready to transition to cashless, so Peli Peli has a backup company credit card if a customer can’t pay with a card.

“It’s part of growing pains when you’re trying something new,” he said. “I imagine we’ll deal with that a few more times until people get used to it.”


In Sweden now the owners of yogurt stands are refusing to accept cash. There is also proposals to eliminate cash registers from major department stores.


I got the following in credit card statement
Quote: DiscoverCard
Effective February 1, 2018, we are changing the following provisions in your Agreement: Making Payments, Automatic Billing Arrangements, Our Communications with You, Arbitration and Your Billing Rights.
Making Payments: We are letting you know that we do not accept cash as a payment method, and that third party payments are subject to adjustment.
We are replacing the first bullet point in the Payment Instructions paragraph with the following:
- "You must pay in U.S. dollars. Please do not send cash. Sending cash is not allowed.


It never really occurred to me to pay a credit card in cash stuffed in an envelope, but now it is disallowed.
Page 8 of 8« First<5678