Greetings from New York City, where you can save money by paying in cash.

Watching a televised rugby game, Leinster playing Northampton, at an Irish pub, The Long Hall, NYC, the bill if paid in cash would be discounted.  On $100, savings could have been $3.00.  Incentives, in the US cash are plentiful, for example, the price of gas (petrol) is lower at the pump when cash is used.  Also, at the point of payment, the customary is asked, “would that be cash or card?”

Cash usage in the USA, like the UK, is declining. The Federal Reserve reported from 2018 to 2020 the use of cash declined from 27% to 19%, down 8%.  Credit cards increased from 23% to 27%, up 4%. Debit card usage is 28%, up 1%.

Merchants have many reasons to support cash. A major one: cash is a form of payment with no transaction fees. Accepting credit and debit cards accrue charges at various levels. Therefore, the amount of incentive being paid to encourage the use of cash needs to be lower than existing fees and makes economic sense. 

Cash is expensive to handle as it is often counted more than once and needs its own security. To counter this, banks charge fees that can range up to 5% of the cash amount being deposited.  Cash is anonymous unlike some cybercurrencies.

US ‘Pay by Bank Account’, instant payments, are still in its infancy. Merchants would be able to circumnavigate card fees as they have done so with cash.

The US Dollar is regarded as a world currency.  When purchasing in countries with highly unstable currencies, the US Dollar is prized and significant discounts to these currencies can be gained.

Federal Reserve estimates $950 billion banknotes are held by foreigners, with $100 bills favorite.  Two thirds of all $100 bills are held outside the US. The larger denominated notes in other strong currencies are equally collected, for example, in the UK at the point of sale, the £50 note is regarded with suspicion and often refused due to its rarity and risk of forgery.

The Long Hall had a great atmosphere and staff encouraged social interaction.  The game was tense and at the end, Northampton Saints lost in a close encounter, and as the Irish would say, “it was a great Craic!”. Craic an Irish Word meaning, “Fun or an enjoyable good time!”

As tipping in the US borders on being mandatory, most cards suggest a tip – anywhere from 15 to 25% - for the customer to tap before summitting payment.

To cover the bar bill and tip I left two Andrew Jacksons. (President on the $20 bill).

Thanks

John