As credit card APRs soar, consumers turn to cash
Despite the fact that the payment industry is moving toward the implementation of EMV smart cards and cell phone payments, is it possible that, in the eyes of many consumers, cash may once again be king? If so, then merchants may soon want to purchase an ATM to account for all the consumers who will expect constant access to cash.
CreditCard.com collects interest rates of the 100 most popular credit cards in the United States and calculates an average score. Last week, the index reached a record high of 15.22 percent, exceeding the previous high set in September 2011. Industry analysts have stated that credit card companies have raised rates to try to recoup some of the financial losses they suffered during the economic downturn.
Should more consumers shun credit cards in favor of spending practices that rely primarily on cash, ATM owners need to be prepared to provide consumers with more locations where they can withdraw cash.
Unlike payment cards, cash is accepted anywhere, save for online purchases. Some businesses, such as gas stations, may even offer customers a small discount if they use cash instead of payment cards because they bear no additional processing fees.
Cash also allows consumers to have more immediate control over their finances. There is little chance of overspending if a consumer budgets out how much cash he or she plans to spend in a given week. While credit cards allow consumers to spend more than they actually have, cash may actually control spending.
Only time will tell whether consumers will revert back to preferring a payment method that predates the computers that are currently used to process credit card transactions. If merchants see an uptick of customers using cash in their establishments, they may consider buying a Hyosung ATM or Hantle ATM to provide users with a constant stream of cash.
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