Paying cash: why is it cheaper?

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  • Published on Jul 18, 2014

Comments • 1 261

  • Matthew Kim
    Matthew Kim Hour ago

    Apple pay and Samsung pay and Paypal

  • Jeff Andia
    Jeff Andia 17 hours ago

    I wish I could pay to get my 12 minutes back

  • ryan tyler
    ryan tyler 22 hours ago

    In America it’s against the TOS with the credit card company to off a discount to use cash

  • Alessandro Nitti

    Eddie you are an awesome passionate teacher. But here you have misunderstood sth... You haven't taken into account cash risks and costs: production, transportation, stealing, counterfeiting, laundering, etc..

  • Shelly Bee
    Shelly Bee Day ago

    He is smart and he is beautiful ❤️

  • mny
    mny 2 days ago

    ffs, the board isn't wiped clean.....

  • Tony Wirth
    Tony Wirth 2 days ago

    I had my hand up the whole time he never picked me :(

  • Ambrew
    Ambrew 2 days ago

    You are a great teacher, not many teachers back in my student days had the ability to keep the entire class under control like this.

  • Ismaelz21
    Ismaelz21 2 days ago

    I spent 12 minutes to hear the obvious

  • jmb
    jmb 2 days ago

    but then you lose with paying cash overall because most people lose their change or give it away. with debit/credit the decimals are safer.

  • Joe Sayers
    Joe Sayers 2 days ago +1

    if this was made a few years later, someone would've said bitcoin at the start 🤣

  • Holger P.
    Holger P. 3 days ago

    Nice explanation, not totally wrong, but it assumes cash is available for free, that is wrong. Today it costs about the same. The client has fees on the ATM sometimes, bigger shops have their cash delivered and picked up by security services, and this is all not for free, "shipping and handling" of cash is also 1-2% of costs on either side. Credit cards are down to 1-2% fees also, also for smallest businesses. It just saves the client and the buisness owner the way to the bank, and that's valuable time. There's really no Pro left on the Cash side. The only thing is - the transaction is not recorded - that's good for criminals.

  • Coy Leigh
    Coy Leigh 4 days ago

    Using a credit card for gas is so much faster, you could argue it saves you money.

  • Susi Siebert
    Susi Siebert 4 days ago

    The students are so rude talking the whole time...this guy deserves a medal

  • luardo gamero
    luardo gamero 4 days ago

    however if you have to add the cost of cash management or cash transfer to a safe.. then electronic payment might be better. Or if you want to keep thieves hands out of your register.

  • austin h
    austin h 4 days ago

    Costco visa. Pays you cash to use. It’s a no brainer. Just pay it off every month treat as cash.

  • Roger Warton
    Roger Warton 4 days ago

    Does Eddie still post school class videos? I have only started watching some of this stuff

  • Roger Warton
    Roger Warton 4 days ago

    Im from South Africa, 2L bottle of coke which is also sold as 2.25L of Coke Zero is roughly R20 which I think is roughly $1.50 or there abouts so if you want cheaper coke come to South Africa. 😂😜

  • yazars
    yazars 4 days ago

    I was disappointed by the misleading title because savvy consumers who use credit cards with generous rewards (e.g. 5% back at certain stores) come out ahead compared to paying cash as long as they don't carry a balance and pay interest. At least in the United States, most stores do not give discounts for people who pay cash.

    8:22 "They [credit card companies] don't make it off you, they make it off businesses by charging them." I disagree. Credit card companies also make money from their customers who carry a balance and need to pay high interest rates and late fees +/- annual fees for the card itself.

    Overall, if everyone paid with cash, business and consumers could do better because there isn't a middleman (credit card companies) taking money. However, credit cards encourage people to spend beyond their means, so I believe that business feel that they come out ahead despite the fees.

    For the fees, there's typically a flat fee per transaction, and then a percentage of the total transaction cost. So, for transactions which are too small, the business keep an even lower percentage of the sale.
    Taken to an extreme, if I purchase $0.10 in a store with credit card, the credit card fee will exceed the sale price. Therefore, they set a minimum to avoid an unfavorable transaction.

    One last issue is that dishonest businesses sometimes give discounts for people who pay cash because they are tax dodging and can avoid declaring as much income if they make sales in cash compared to credit.

  • Filaret Busoni
    Filaret Busoni 5 days ago

    In Russia bank charges 1.6% for operation, i don't think that's too much to pay for convinience

  • TreeFiddy
    TreeFiddy 5 days ago

    Paying with good credit card is actually cheaper than cash because of cash backs.

  • JamesJoyce12
    JamesJoyce12 5 days ago

    If you're reasonably intelligent then you get a no-fee credit card that gives you cash back and then you pay off your balance every month - so simple

  • James Colen
    James Colen 6 days ago

    I discovered no success after trying a number of methods which claim to assist me earn cash in just a several hours daily. My buddies told me to google “Sοdαmzοt Sizo”, and now I am generating big money daily. I suggest you to test it too. .

  • aaronrocs
    aaronrocs 6 days ago

    Watching this with $1,500 cash rewards on my credit cards, not $1 in interest payments and a high credit score. Tell me more about how cash is cheaper

  • VgetGinas
    VgetGinas 6 days ago +1

    *Why dont you mention that chinese restaurants only accept cash to avoid paying "income tax" for business and scam the government? You out here defending chinese scammers. fuck outta here*

  • Sameer Panchangam
    Sameer Panchangam 6 days ago

    Bitcoin?

  • Allan Lipsum
    Allan Lipsum 7 days ago

    Just use bitcoin

  • Mega Gaming
    Mega Gaming 8 days ago +1

    I’m the 666666th view

  • TwinKies Ayyy
    TwinKies Ayyy 8 days ago +2

    i'm nearly crying, the way this guy teaches is amazing. Thank you algorithm for bringing this video up.

  • Can Metan
    Can Metan 8 days ago +3

    Credit card companies like Visa or Mastercard charge "operational fees" to businesses therefore it's cheaper to pay cash.
    It was entertaining to watch but 12 minutes for 2-3 sentence information. Damn.

  • Sheena Armstrong
    Sheena Armstrong 9 days ago

    You dragged out saying that it cost money to transfer money electronically and then encourage the children to interact with you so that you can be rude to them if they bite your dishonest bait. I guess you have to feel like you're working.

  • xiaoleideng
    xiaoleideng 9 days ago

    Many stores offer cash discount around 5-10% lower than using credit card or debit. This made me believe tax invasion might be involved given the fee of credit card is definitely below 5%

  • ffatheranderson
    ffatheranderson 9 days ago

    He is forgetting about physical transportation of cash to bank. When you pay with credit/debit card - you do not have to pay for in-cassation.

  • Dogcat
    Dogcat 9 days ago

    ...cheque

  • UnknownTK
    UnknownTK 9 days ago

    🙋🏻‍♂️ Bitcoins

  • John Sanders
    John Sanders 10 days ago

    Apple Pay

  • YOUbYOU Be you
    YOUbYOU Be you 10 days ago +1

    Hee hee, as a Chinese, I always negotiate with the shop, if I pay cash, can I get a 20% off? It usually works.

  • Andrew Kulakov
    Andrew Kulakov 10 days ago

    In Russia the debit card is cheaper due to cashback

  • J N
    J N 10 days ago

    Does this no surcharge thing happen in new Zealand? Someone tell me where to get cheap cash only food in Auckland?

  • Sharan Ravigopal
    Sharan Ravigopal 10 days ago +1

    lol he's a great teacher .. glad this was in my recommended

  • Jules Abagel
    Jules Abagel 10 days ago

    Just put it on my tab bob.

  • Alexander Kazarin Helboe

    Why is my teachers not like this?

  • Nackinoo
    Nackinoo 11 days ago

    Lodgement Fees for cash, often. and banking costs which we all pay for in interest rates effects need to considered for this to be "Truly" be accurate tho ...

  • Sonny An
    Sonny An 11 days ago

    What about Bitcoin?

  • Daniel-Jordan Dominique
    Daniel-Jordan Dominique 11 days ago +1

    I love to see enthusiasm in teaching like this!!

  • Janik
    Janik 11 days ago +1

    Economist talking: I think the motivation is price differentiation. As a business I am worried about maximising profits. Ideally this means that the customer pays as much as he is willing to pay - so wealthier people pay more. I dont mean to say that wealthy people will just donate money to me for the hell of it, but rather that they pay no matter what I charge. So I charge more. But hang on - now the less wealthy people are no longer able to afford my product, so I am no longer making money of them. So I want to charge different people different prices. Commonly this is done by giving discounts to less fortunate groups, like students. Another way is coupons - if you have the money they are a waste of time, if you are poor you don't mind collecting them. Or you have to wait for the next sale. Or I try to sell you a disproportionately expensive premium version of the product. Or your barber wants to sell you overpriced hair products. In the example in the video its convenience. Il'l give you the pizza cheaper, but its gona be a little pain in the ass worrying about your wallet filling up with change etc. Hopefully it makes your parents pay the extra dollar while I don't lose you as a customer

  • Nima B
    Nima B 11 days ago

    you can pay with BITCOIN :)

  • 16
    16 11 days ago +1

    Thats opening my eyes how some teachers are able to get the pupils into the topic by including them all the time, even if it’s not really fitting.
    Simple, but effective. Didn’t notice that that much back then.

  • zrzavyorm
    zrzavyorm 12 days ago

    hello teacher, you haven't factored in time/effort to handle cash/change vs other methods of payment

  • Enfox er
    Enfox er 12 days ago

    misleading title.

  • Juan Andrés Fuenzalida Alarcón

    Which class is this? We need Civil Eddie-cation where I live

  • Noe Horowitz
    Noe Horowitz 12 days ago +32

    This entire 12 minutes video in a sentence:
    Shops have to pay a surcharge when you pay with credit card meaning it costs them more when you use one, so that is why in some places paying with credit costs you more.

    • Sanyuj Gupta
      Sanyuj Gupta 15 hours ago

      and that sir is why i dont attend lectures!

    • Doubledealer
      Doubledealer 5 days ago

      An acquaintance thought it was because the shop doesn't have to declare cash transactions and so come tax time it looks like the business has earned less and so get taxed less, whereas card transactions are all monitored.

  • im no one
    im no one 12 days ago

    Love from India ❤️
    (Though we are asked to pay by card) 😂😂

  • Vinchenzo25228
    Vinchenzo25228 12 days ago

    How common are these "Pay less pay cache" businesses in USA? never seen that kind of a thing in Europe

  • Viswanathan Mahalingam

    Way to go man 🔥

  • bilsib53
    bilsib53 12 days ago

    Five years later and the agenda for a cashless society is accelerating. ATMs may well have a cost for the bank, but they are way cheaper than main street branches, most of which have disappeared now. There is public resistance to paying for access to our own money, so most ATMs are free and the onus for cost of access is put on the retailer. To get any reduction to this cost, the retailers must reach card sales targets, so needing to reach these targets, they will (eventually) no longer want our cash ... job done. :/

  • Hasan
    Hasan 12 days ago

    In the uk it's not legal anymore to add service charges to card payments, which is stupid move from the government. Because small businesses have to either take a hit on the transaction fees or lose the sale (in an increasingly cashless world, all young people use contactless).
    Only thing I can do is specify a £5 minimum spend to use card

    • Hasan
      Hasan 12 days ago

      They said it's to make it fairer for consumers but in the real world people were happy to - and still would like to - pay an extra £0.20p to use card on small purchases under £5

  • Avinash K
    Avinash K 12 days ago

    I am an employee of VISA. Don't listen to this guy.

  • Marcel Salem
    Marcel Salem 12 days ago

    what class is this, like with my american classes we have adv. algebra math analysis(pre-calc) and calculus. Throughout my years i havent had a lecture like this. Good stuff tho

  • Robert Törnqvist
    Robert Törnqvist 12 days ago

    As a vendor, handling cash is not actually for free. You have to put hours in handling them (count all for each cashier every day, filling change etc), pay for small change refills, paying for security picking the cash up, safety boxes etc.