The Cashless SocietyFollow

You know when you hear things on the media, and they sound like if they''re implemented, or come to fruit, they'll change things so much for the better? and 5, 10, 15, 20 years later, you remember about them, and realise that future never came? The other day, there was a media report that Australia now only uses cash for 20% of its transactions, down from 30% 4 years ago. And days later its set off my gut instinct. My gut threw back a concept and my brain came up with the phrase "Early Adaptors".

You see, for all our geographical isolation, split-brain xenophobia, political idiocy, trailing behind progressive Northern Europe, and passionate love-hate affair with American culture, Australia has way of quietly, invisibly, being the first, or one of the first few, nations in the world to implement stuff.

We've had the most cell phones per head of population for some time now.
1988, the world's first anti-counterfeit plastic bank-notes were Australian.
1970, the first in the world to make seat-belts compulsory to wear at all times, and heavily police the law at implementation, plunging the road death toll per capita.
Former Australian Prime Minister Bob Hawke was previously the world record holder for the fastest drinking of a yard of beer, when he downed a sconce pot in eleven seconds as part of a traditional Oxford college penalty
1901, the first nation in the world crated by a vote of citizens instead of by war, revolution or invasion.
1894, South Australia became the first nation in the world to grant women the vote. I'm claiming that one because South Australia became a state of Australia in 1901.

in the 1980's the Labour government - the party for the workers and disenfranchised - radically abolished tariffs and we've been making Free Trade treaties all over the place since. Financially we're one of the least protectionist nations in the world, and we've swallowed it despite a massive turnover in industries, businesses, and small farmers. Diplomatically, economically and scientifically we have punched far above our population weight on the world stage for at least 60 years. This is despite having a rather modest GDP growth rate. On the flip side, we're one of the cruellest nations to asylum seekers who arrive by boat, with all sorts of innovative ways of keeping them in concentration camps for years before admitting they're genuine refugees and releasing them, with a bill for their years of compulsory confinement.

Anyway, I just have this feeling. Most experts think that there will always need to be cash in society, and if we get rid of it, criminals will just invent something new to circulate. But I bet, I bet you that the first nation to officially abolish cash (even if it doesn't stick) will be Australia. We are already in the process of abolishing cheques.

Because all wages to employees get deposited directly to their bank accounts from the employer's bank account, bills are paid by Billpay over the phone from your bank account to the utility, bills to companies are paid via credit card, debit card, Billpay via phone, or direct payments via internet to their bank account. Taxis are paid via debit or credit card in the cab, home deliveries are paid by credit or debit card via a mobile swipey system, Groceries and in-store purchaces are usually debit or credit cards, government welfare and tax returns are paid directly into your bank account and government and private health insurance returns are paid directly into your bank account. Healthcare visits are usually paid upfront via debit card out of bank account or credit card. Unless you earn under $20 k then you just sign the bill and the government pays directly into the doctor's account and you pay nothing. Medicines are usually cheap enough for cash, but otherwise debit or credit cards.

That was a bit backwards. Doctor's visit: they show you the bill, you debit card or credit card it right there, you show your Medicare card or they have the number on record, you sign a little slip, the doctor's receptionist transfers a government refund directly from a government Medicare account to your own bank account, which clears immediately for you to use, and keeps the signed slip for government audits.

Electronic bank-to-bank transfers usually take 2 days to clear tops, compared to 7-10 working days for cheques. Government bank transfers into your account are usually available to spend immediately, no clearance time needed.

Buying over the internet takes a debit or credit card. Anything where you used to post a cheque is now usually handles by internet or phone banking. Basically if you're Australian you can't function without a bank account unless you are off the grid. On the bright side, the Government guarantees up to $150k of your money in any one bank account.

Edited, Apr 1st 2012 2:04pm by Aripyanfar

This will all end with Gbaji holed up in some mountain cave with a stack of personal checks and a shotgun.

I supose not having to tell people to clear their browser cache would be useful.

Or I just take out my check book, a pen, write a check for the sum and give it to the person. And if they need something more secure I get a Cashier's Check, with their name on it, and give it to them. The only information I need of theirs is their name. Don't need to know their bank routing number, account number, etc.

I owed my uncle 600 dollars for some work he did on my yard (couple truckloads of dirt and gravel, heavy equipment usage, etc.) Seems a lot easy for me to write him a 600 dollar check than to get his bank info/account info and have to transfer money from me to him.

I purchased a 3,000 dollar used vehicle that was for sale by owner. I stopped by my bank on the way home one afternoon and got a 3,000 dollar cashiers check to them. Handed over the check and took the vehicle.

Just seems like eliminating checks is pointless. They have their use.

I think you need the account number for checks here so there's no extra info needed for internet banking. I'm not entirely sure though since I've never actually had to use a check.
In both cases Tirith just mentioned it would be much quicker and just as easy to use internet banking.

My personal opinion on the matter is that I prefer cash, but do enjoy the convenience of electronic. Cash seems more real to me than just swiping my card. It has more of an impact to me to actually hand something over for goods and services than to just have some numbers change in my account. That said, it's nice to not have to carry around large amounts of money, and to not have to worry if I have enough money on me to buy something.

Just for practicalities sake, I don't see cash ever going away entirely. I've worked retail, and one thing that I can say is that electronic services do go down from time to time. You can't just stop your entire business because of network issues. Not to mention that there are tons of places that are still cash only. Businesses aside, there are plenty of debts of a private nature that it's just easier to either use cash or a check for. From Ari's tale I can see things are a bit different in Australia, but for now at least the U.S. just isn't ready for it.

Just because I've never used one doesn't mean I've never seen one. I should actually have a checkbook. Somewhere. Gathering dust.

Edit: Cash only places are really rare in the Netherlands and a lot of stores prefer being paid with debit cards instead of cash.

Edited, Apr 1st 2012 10:08pm by Aethien

You shouldn't need the account numbers of the Payee when writing a check. And checks already contain the bank routing information and account numbers of the Payer written on the check. The only thing you should have to write on the check is who you are paying to, and how much.

Internet banking is only as easy as access to the internet. Checking is as easy as access to your check book.

Bob Hawke got elected as Prime Minister (like the USA President) for a total of 12 years, because people loved him because he loved sports and drank like a fish.

Drinking like a fish included holding the world speed record for drinking one of these in 11 seconds.


Edited, Apr 2nd 2012 12:32am by Aripyanfar

My internet banking account already contains all my info as well so that's kind of a moot point and I tried to verify what info you need on a check here but I can't even find an image on google.
and I've got access to the internet almost everywhere.

And as Sweetums said, having to go to the bank is a pita and checks are much slower and much more prone to fraud.

I hear Canada is doing away with the penny.

We need to do away with the penny and the nickle. Both a waste of money.

Put them on your new $1 and $5 coins.

We'd have to wedge him between Susan B. Anthony and Sacajawea on the $1. No one wants to see that.

Grover Cleveland, seven midgets, and a bottle of Thousand Island dressing.

I thought that was the Snow White.

That's with 7 short bald men and an unconscious woman.

I think this thread makes a good argument for a cashless society; noone will want to touch their 'founding fathers' after this.

Edited, Apr 2nd 2012 2:39pm by Timelordwho

Here in Canada it is easier to use checks still for a lot of things - mostly because we live in a culture of getting ripped off by financial institutions. After a lot of figuring things out and checking out the fees we discovered it was both easier and cheaper to pay our rent with a check vs. electronic deposit - and the easiest way for my partner to transfer money into our joint account from her account (because they are different institutions) is also a check (costs the least and doesn't take much longer)

It's dumb but, financial institutions (like phone providers/internet providers) are too busy gouging us to make it easier to transition

If they'd not make them look like and feel like quarters they might have better success. Coins don't have to be round.

If I have cash I just whittle it away. I basically use my debit card for everything, and then the purchase has to amount to something before I'll agree to it.

I had to break-up with one of my coffee shops because they'd not let me use my card for a purchase less then five dollars.






Edited, Apr 2nd 2012 9:13pm by Elinda

I don't know where to begin on that one.

x8.
----------------------------------------

I believe the core components of this plan that have issues to be with it's A: Ease of use, and B: Costs of near total adoption. A depends heavily on transactional availability, which sounds pretty good out there, but not quite as accessible as currency; and B relies on the mint cost of currency vs. the transactional cost of digital banking. One issue in particular is the fact that availability of a secondary medium of exchange (Cash) keeps the cost of private market transaction solutions down. You'd need to have more heavily regulated markets on that front, or have the banking institution run as an arm of the state,( which has a host of issues associated with it). But such a system can probably be set up to cost less than the real mint costs associated with currency.

speaking of cashless society, apparently a bunch of personal info was accessed over the weekend from a third party for Visa MasterCard.

WSJ]

Ive read from other sources anywhere from 50-100K could have been affected.

Very good point.

$35 a month? That's it? lol, you should try looking into some of the plans in the US. The two different cell phone companies I've used that offer unlimited data plans charge $50 a month for each line. My boyfriend and I's cell phone plan, when we lived together, was almost $150 a month between us both having smart phones with unlimited data, and having an unlimited texting plan (which we had to have if we wanted to text, since the company we were with got rid of all the other texting plans). After we were both unemployed, even with my financial aid money, we couldn't afford it anymore so we had to downsize.