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Debit Cards: the New Currency of Consumerism
Cash has been the cornerstone of all successful economies for thousands of years, ever since the Lydians produced the first minted coins in around 600 BC.
And today, it would seem that money now makes the world go around. From bus fares and vending machines, to restaurants, bars and shops, our hard earned cash is used to pay for all kinds of products and services. However, that may be about to change, if some predictions are to be believed, with the year 2012 being touted as the year that we completely ditch notes and coins for plastic instead.
Of course, regardless of how accurate this prediction turns out to be, there can be little doubt that we are gradually moving closer towards living in a cash-free society. In most western countries it's now possible to pay for just about anything with credit and debit cards and this shift from paper to plastic payments can only continue as e-commerce increasingly becomes the preferred method of shopping for many people.
Then there is the benefit for those travelling abroad too. Once upon a time, people had to rely on travellers cheques as the only real safe alternative to carrying substantial amounts of foreign currency around in a money belt. Now however, nearly all credit and debit cards permit travellers to withdraw their money from ATMs abroad. There are costs attached to this, but if transactions are limited to only three or four over the course of a holiday, then this can strike the right balance between convenience and cost-effectiveness.
Debit cards, in particular, allow those who don't want access to credit facilities to spend their money as they see fit and mean that many people simply no longer see a need to carry cash around anymore. If a person loses a wallet with cash in it, there is a strong possibility they won't see the money again. But if all they have is a debit card, they can cancel it immediately and have a new one issued in a matter of days.
Of course, given that people have many different types of bank accounts to choose from, there can be a whole host of debit card options too.
From standard Visa debit cards that provide 24-hour global cash access, through Gold account Visa deferred-debit cards that are designed to optimise earnings from interest, there is a number of options to choose from. And some even come with comprehensive travel insurance and cash advance facilities in the case of emergencies.
So it's clear to see why plastic is becoming the preferred method of payment for so many people, with convenience, cost effectiveness, e-commerce and a whole host of other benefits combining to make carrying cash a less appealing option. And if a cashless society doesn't happen by 2012, it seems a safe bet at some point in the not-too-distant future.
About the Author Paul McIndoe writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
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