Going Cashless can be Expensive

By  | 

Carrying cash seems to be a thing of the past these days where it’s rare to see and businesses who don't accept cards, but is going cashless costing us more money.
The Consumer Financial Protection Bureau says most debit card overdrafts are caused by small purchases, leaving most consumers paying more in overdraft fees than the actual transaction...

“If you look at the cost of that credit extension in the form of the overdraft fee versus the small amount of the debit card purchase, then yeah it's going to be a large annual percentage that you're paying.” said Gary Trapkus, Vice President of Hilltop Bank.

Trapkus says Hilltop bank doesn't offer the option to go over the amount in your checking on debit transactions, and that people should not take that option if banks do offer it. But the best way to make sure you don't go over your limit is the old fashioned way.

"Bottom line is, you need to keep track of what's in your checking account." said Trapkus.

Because more and more people aren't paying with cash anymore.

"I use debit card more often just because of convenience. I don't like to hold up the line by going through all of my cash, and I can just swipe and I can keep track of what I bought." said Victoria VanHorn of Casper.

"I like using a debit card because I never know what I'm going to buy and I always know I'll have enough on there and all I have to do is throw it in my pocket and I'm ready. I can just look on my smart phone at any time and see what my balance is.” said Tiann Poloncic of Glenrock

But something many people don't consider is that the convenience of electronics and smartphone apps, isn't free.

“The fact that you and I can walk in with a debit card and swipe it at a store, there's a very elaborate electronic system behind the ability to hand them that card.” said Trapkus.