There has been a huge push to go to digital currency. Over the years I have had varying opinions on this subject. I like the simplicity of using my credit card so I don’t “run out of money” when I’m out of town, or simply for the convenience of never having to check how much money I have with me before I go to the grocery store. 

But in recent years, especially as I have started my own business and have a card reader for shopper convenience, I have learned more and more about the down side of paying with a credit card, especially when paying for items at a small, local business. Not long ago I read an article that kind of laid it out pretty well and now cannot find it anywhere, so I’ll give you the gist of what it said, or at least my understanding

When you pay with a card, there is a certain percentage deducted from that transaction that goes to the credit card company. This is your fee for utilizing their service (which is fine, they’re running a business too). So say you pay $10 for an item. The business owner would receive approximately $9.65 for that item (based on what is deducted from the company I use), the credit card company receives the other $0.35. Then you take that $9.65 and pay for an item, and it’s been reduced again to around $9.30, and so on. 

As you go along, that $10 continues to reduce until the credit card company has now $10. But, if you pay someone with a $10 bill, that person can then go spend that $10 for the full value of the bill. And it continues. That $10 never loses it’s value through repeated transactions. 

Depending on the business and the amount of money that runs through that business, those fees can add up to quite a large amount of money that they don’t receive for their services. So, how do they combat that loss? They raise their prices. Some companies do an overall price adjustment with each item, others charge a fee for using a card at checkout. 

None of this is actually why I am currently against digital currency. I do think that each company involved in a transaction should have the ability to recoup the cost of their involvement.

What worries me is the ease with which my accounts can be closed or frozen when all I have is digital currency. Case in point: We had a friend who owned their own business and ended up having a workers comp dispute. Workers Comp simply withdrew the fee (which was over $20,000) from every account which the business owner was listed on until they had their fee covered. This included the business account, the couple’s personal account, as well as their children’s accounts. 

In the end, workers comp had to give the money back as an agreement was reached, but it happened at the click of a button with no warning. Suddenly, they didn’t have money for their mortgage, phone bill, electric bill, etc. There was no, “lets work this out,” it was more guilty until proven innocent. 

This was years ago. If it was that easy then… There are more and more advertisements about fraud these days, as well as so many people’s information being stolen. Besides the fact that we have turned into a country of act first and ask questions later. Don’t discuss and come to a mutual agreement, accusations mean guilt, until, oh wait, maybe that wasn’t right. 

I am a small business owner and would rather receive cash. Not because I’m trying to hide my income (which is one of the reasons the government is pushing for digital currency). But because then I have the ability to do with it what I need to do without worry or fear of it suddenly disappearing somewhere in the system. I still have a bank account, I still use my credit card for convenience, but more and more I use cash as much as possible. Where do you stand on the digital currency issue?