what kind of money you'll be putting into vending machines 25 years from now
I already rely on cash only as much as absolutely necessary. With a debit card, I can pay for any credit card transaction directly out of my checking account, and more and more places are accepting credit cards every day. Hell, in bigger cities, you can even use a credit card in places like a Jack in the Box drive thru. In 25 years it'll be even more pervasive.
Some places now are even supporting debit cards directly and require me to enter my PIN... all the better, that extra layer of security is a little comforting. If my card is ever stolen though, I'm limited in liability to $50, thanks to credit card laws that apply even though it technically isn't a credit card, and I keep a little nest egg tucked away in an unrelated account to tide me over while the bank tracks down and fixes any unauthorized use of my main account.
Sure, it's not exactly a model of privacy since every purchase I make is logged on my account, but I consider the security of my money more important as a real issue than the nebulous fear that someone, somewhere is going to exploit the fact that I like buying cheeseburgers for lunch.
Sure, in the case of fraud, you're limited in liability to $50... but only once it's all said and done. In the meantime, you are actually out whatever the fradulent charges are.
Here's an example. Your paycheck is deposited, putting your account at $1500. The next day, someone goes and fradulently buys some stuff, say $1500 worth. Your account balance is now $0. If you report the incident, your balance will still be $0. Not until everything is tracked down will you get your $1500 back. In the meantime, I hope you have some savings, since your rent and phone bill will still come due.
Solution? Always use a credit card. In that case, it's the bank's money that's gone missing. And, suddenly, they're much more interested in recovering it.
The future of money is already here... (Score:5, Interesting)
I already rely on cash only as much as absolutely necessary. With a debit card, I can pay for any credit card transaction directly out of my checking account, and more and more places are accepting credit cards every day. Hell, in bigger cities, you can even use a credit card in places like a Jack in the Box drive thru. In 25 years it'll be even more pervasive.
Some places now are even supporting debit cards directly and require me to enter my PIN... all the better, that extra layer of security is a little comforting. If my card is ever stolen though, I'm limited in liability to $50, thanks to credit card laws that apply even though it technically isn't a credit card, and I keep a little nest egg tucked away in an unrelated account to tide me over while the bank tracks down and fixes any unauthorized use of my main account.
Sure, it's not exactly a model of privacy since every purchase I make is logged on my account, but I consider the security of my money more important as a real issue than the nebulous fear that someone, somewhere is going to exploit the fact that I like buying cheeseburgers for lunch.
Re:The future of money is already here... (Score:3, Informative)
Here's an example. Your paycheck is deposited, putting your account at $1500. The next day, someone goes and fradulently buys some stuff, say $1500 worth. Your account balance is now $0. If you report the incident, your balance will still be $0. Not until everything is tracked down will you get your $1500 back. In the meantime, I hope you have some savings, since your rent and phone bill will still come due.
Solution? Always use a credit card. In that case, it's the bank's money that's gone missing. And, suddenly, they're much more interested in recovering it.