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Then you have some retailers charging a service fee if you spend $10.00 or less and free upwards from there on. This is because financial institutions are charging them a fee for transactions. So the retailers need to push those charges onto us.
What doesn't help in using cash is the ACCC (Australian Competition & Consumer Commission) doesn't fully support businesses accepting cash Click here for details. We need to promote the use of all Australians using legal tender cash as opposed to using electronic cards.
Here we will show "the true benefits" of having cash to pay over electronic payment methods. If we have no cash or coins - what sort of society will we live in when electronic systems crash.
Financial Institutions
With low-interest charges on savings, financial institutions have to find other ways for us to pay for their services. As a kid, my understanding from my parents and education was that financial institutions make their money from the different interest charges. That is, interest payments received on all loans, minus the interest charges on savings, bonds etc.
That is all I thought about the way they make their profit. Sixty years ago or more that's how they did it - using the old passbook accounts, signatures of customers were kept in branches, entries of cash withdrawals, and deposits. Yes, you had to queue up to get your transactions completed, today you queue up either to the enquiries section or to the tells. If you are lucky, three or more tellers are serving. There were a few fraud accounts.
Yes, back then, there were potential daytime bank robberies. That was the risk financial institutions took. We have security guards at branches, ongoing financial scams, and hackers trying to access private account details. Financial institutions are not only dealing with security at branches but with internet security and employing more staff to combat this ongoing daily problem.
The more cash the Financial institutions hold, the more staff, they can employ and the more money around the national economy is spent. The more staff they have, the fewer counting machines are used. Why? Because it costs a lot of money to maintain all electronic ATMs around Australia: obtaining spare parts, payment to contractors, and replacing of machines (based on wear and tear).
Financial institutions should not charge a fee for withdrawing large amounts of cash from any account, using tellers, as that is part of their role.
Financial institutions should not limit the amount of withdrawals as they do not limit the amount of deposits.
If an account is not withdrawn in any month, the financial institution should provide a small financial credit (Reward), showing appreciation for the money banked.
So what happens if you turn up to your financial institution and the sign reads no ATM withdrawals for 1 week due to technical issues and there is no cash or coins as legal tender, available?
What happens if you wanted to make a large withdrawal of $10,000 and the financial institution's ATM says 'Sorry you have a nil balance?' There isn't a teller to talk to and discuss the issue. In fact, there are no tellers around. You have to wait for the next business, to call the Customer Service line. You are asked, 'What is your call about?' by a robot answering machine service. You answer, 'It's about the missing money in my account.'
The robot answering machine is saying, ' I'm sorry, you're not saying debit or credit card, please repeat again.' So you repeat again. Ok, we need your account number. Please press your PIN number - you will be transferred to the next available operator (not the teller).
Then, you finally reach an operator after 45 minutes of repeat financial institution scripting by voice robots, ' You are the tenth on the queue and the waiting time average is 30 minutes.' Classical music is provided and cuts off - not like you are listening to a radio station.
'May name is Tina, how may I help you ?' not like, ' Good Afternoon, this Gold Bank Deposits, Senna speaking, may I see if I could assist you?' You say, " I have just been to tour ATM and there is no money in there - I know I had $11,500 in my account during the month and it is not there!'
'Ok, let me check your account but confirm your identity first,' You say, 'Yes.....' 'Right John, it looks like you made an international money transfer for $11,465.34 to Club Disco Connect one week ago.'
'What? How the hell did this happen?' Tina replies, ' John with online payments, fraud may occur. We do our best to warn you if we suspect the transaction.' 'So, what do I do now? I've got no money. If we didn't have online accounts/banking there would be none of this type of fraud. The same thing happened to my wife 9 years ago.... I think she never got her money back.'
Tina, 'We will have to refer to one of our specialists to retrieve those funds. As to withdrawing $10,000 now - that can't be done now. We will report it as a possible fraud. It may take a few days to resolve it.'
So, the idea here of provide that scenario to understand the thousands of problems and potential fraud that are happening today. By having your Bank account passbook, your signature was in every book not seen by others except financial institutional staff. As soon as you approached the teller, most tellers knew who you were and if they didn't yes they would need you to show your identity paperwork or card, for proof. Everything was signed for.
Today, you don't always sign for transactions, you have your debit/credit card scanned and withdrawals can be made over the counter as machines, without any signatures.
So, the disadvantages of pushing ATMs towards customers for all transactions is not justified by any means.
- ATMs cannot answer any enquiries if the transaction can not be completed due to potential fraud.
- ATMs can break down at any stage, could be out of operation for a long period
- at an ATM, there could be people watching for your PIN to be entered, then you lose your card and multiple illegal transactions are conducted.
- ATMs could run out of cash or limit cash withdrawals
- ATMs will not provide withdrawals in coins
- ATMs might have a limit of cash to withdraw from your own financial institution account. A daily limit.
- With ATMs, there is no Customer Service Officer available to assist you at nights
- ATMs maybe prone to being scammed as well by hackers
- ATMs do not provide withdrawal in coins
Advantages of paying with legal tender "Cash"
There are many reasons for paying by cash, that will be explained here. This advantage outweighs the payments made by debit/credit card.
The cash you carry is the cash you pay on a personal basis. It may prevent you from overspending: money you don't have. It limits you to what you want to spend on each item.
Physically, you can with emotion, wave the cash around, so show the hard cash. Indicating that you have the amount to pay.
Financially, you could be rounded down to the nearest 0 or 5-cent cent denomination. Savings of One to 2 cents per transaction. You could be making 100 transactions like this in one year which could be a very small savings of $1-2.00 per year. It may not sound like much but if 15,000,00 Australians are doing this that would be an annual savings of $15-30M per annum, for all.
Also financially, when we go to service industries like restaurants, shops and other businesses, we do not have to pay a surcharge for paying by debit or credit card $1.25 minimum. So if we do this say 50 times a year, that's a savings of $62.50. If 15,000,000 Australians do the same, that's a complete saving for everyone $937,500,000 - that the financial institutions won't have. Imagine if there are more than 50 transaction fees charged using a debit/credit card?
Financially, financial institutions have easily accessible cash, making it more available in time.
For businesses, a direct debit can return funds, as not received - which is time-consuming to retrieve it. With cash, there is no cash being returned, legitimately.
Cash is portable. You can take it anywhere and use it to pay, except in non-cash stores.
Paying Bills
Bills are paid by cash at your local Post Offices through the Australian post-payment method or directly at the Creditors' business, if suitable. This would be a convenient way of getting bills paid on or before due dates. People would feel more confident and be more reliable in paying bills on time.
All Governments & Financial Institutions
Less tracking of what your spending is, recorded by your financial institution and all tiers of Government - which in my books is against the National Privacy Principles Regulations and Acts. It would also be covered in the Australian Privacy Act of 1988.
Information from this could be used and sold to Marketing Companies, who are searching for a certain type of consumer. That is, shopping items listed in your bank account, are possibly accessible to governments from all over Australia.
If there is a complete
History
Legal tender notes and coins are produced with historical people, animals and fauna that are icons of our nation. Great for educational purposes for our young as well as historical.
The Royal Australian Mint, Canberra, ACT & Printing Australia Limited, Craigieburn Victoria would be shut down, with job losses and possibly knocked down and rebuilt for other housing. They are where the legal tender coins and notes are produced, both owned by the Australian Reserve Bank.
Overseas Visitors
Any overseas visitors would be able to pay cash without being charged overseas charges from their financial institutions. Being provided with access using Australian currency at entry points to our country allows visitors the proper way to pay for their stay here.
Individuals & Families
The benefits start from the savings of not being charged various financial institution fees, service industry fees and some retailer fees. The power to spend only what you need to spend and not go overboard with your wants.
More benefits of going out and about to pay for your shopping, in some cases and negotiating a price for paying cash.
The accessibility of withdrawing cash from financial institutions is limited to what amount you want to withdraw (and save), based on your income and expenses.
For children, how can they receive money from the tooth fairy (under their pillow), without having coins or cash? How can parents offer small rewards for doing good chores around the house, without having coins or cash? Cash is needed1
Parents reward their children for lunch money at school, they can't do it if they do not have coins or cash. Can they? Cash is needed
When you have a plumber or electrician or any other tradies that assist you with your home, you pay them by cash. They don't have the machines to process debit/credit card payments. Cash is needed!
When you go to community local markets, you need cash to purchase items.
Conclusion:
Make it your first day that you use cash for all payments.
By doing this you are sending a message to all governments and financial institutions.
Be proud of doing this.
Save the change you get from all transactions
Tell your friends and families to do the same.
See how your life will change when you limit your expenses, not just for you for all.
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