Central New York, Technology

No Cash, No Problem

People are using less cash than in years past (c) 2017 Tommy Farrell

By Tommy Farrell SYRACUSE, N.Y. (NCC News) – People are withdrawing less cash from the ATM, according to a Bankrate.com study.

Colleen Giblin, Assistant Professor of Marketing at LeMoyne College, points to several reasons why people aren’t using cash as much.

  1. “Pain of Payment”
  2. Social Norms
  3. Loss, Theft, & Security
  4. Cash Back

“It’s more psychologically painful to part with cash,” Giblin said.

Money-transferring services, such as Venmo and PayPal, allow consumers to pay friends or merchants through their smartphone.

“It licenses people to not have cash because as long as someone in the group can cover it you all can just pay them back,” Giblin said.


People feel more inclined to use a card over cash because of possible fraud, that is why it has become OK for people to use credit cards for small purchases, Giblin said.

Fraudulent activity can drain their checking and/or savings account. But when it comes to credit cards, those customers are often not responsible. The risks of loss or theft are very much minimized in that respect, Giblin said.

“Cash can’t keep up with those type of protections,” Giblin said. “I also think it has become much more socially acceptable to not carry cash.”

With cash back, Giblin said it is cheaper for consumers to use credit over cash if they are paying off their credit cards.

“Consumers have an expectation that basically anywhere they go they can use a major credit card and not have a problem,” Giblin said.

Despite Giblin’s four reasons on why people are using cash less and less, cash is here to say.

“It’s kind of impossible to think that there will ever be a fool-proof, hack-proof system,” Giblin said. “So I don’t think we can completely eliminate cash.”

People are using credit and debit cards more than cash (c) 2017 Tommy Farrell