Credit card power...

[thaskalos]

I just returned from a shopping trip to one of those fancy new independent grocery stores that have been popping up everywhere. It's a beautiful-looking store, and it's always busy...but as soon as I walked through the doors, I realized that something there had gone terribly wrong. There were full shopping cards abandoned everywhere...angry-looking customers were filing out of the store in droves...and the store employees were frantically pacing about the place, not knowing what to do first.

I grabbed the arm of a store manager there that I had become acquainted with...and asked him for an explanation for the chaos that had overtaken the store. Were they robbed? Had the place been under attack by Muslim extremists? No...he told me. The provider of their credit card processing system had experienced a power outage...and they were currently only able to accept cash or checks as a form of payment for the merchandise that their customers were buying.

I was stunned. Could a rather minor inconvenience such as this be the cause of the mayhem that I was witnessing?

I walked over to the register section of the store...and I couldn't believe what I was seeing. With signs everywhere alerting the customers of the credit card problem, and the cashiers and managers patiently explaining to everyone that this was not the store's fault...the vast majority of the customers were still reacting as if someone had just insulted their parents. Whereas some of the customers seemed to be understanding, and fumbled through their pockets or purses in search of cash or a check...most of them either indignantly demanded that they be allowed to keep their groceries without paying for them...or they were disgustedly leaving their shopping carts behind...and walking out angrily.

Luckily...I still believe in carrying cash in my pocket...so I did my shopping without any problem. But as I was driving home, I couldn't help but wonder:

Have we really become THIS reliant on our credit cards? Would we still be able to survive without them?

[johnhannibalsmith]

I love stories like this.

Signed, cash only and no cards customer.

[pandy]

If all the credit card processing machines went dead for a week it would probably trigger a worse recession than the one we just went through. For a month, can you say, 1929?

[Tom]

If the gubbermint were to declare all CC balances to b $0, the economy would boom like never before overnight.

And by next week, the debt would surpass that which was forgiven. :bang:

[ldiatone]

I just returned from a shopping trip to one of those fancy new independent grocery stores that have been popping up everywhere. It's a beautiful-looking store, and it's always busy...but as soon as I walked through the doors, I realized that something there had gone terribly wrong. There were full shopping cards abandoned everywhere...angry-looking customers were filing out of the store in droves...and the store employees were frantically pacing about the place, not knowing what to do first.

I grabbed the arm of a store manager there that I had become acquainted with...and asked him for an explanation for the chaos that had overtaken the store. Were they robbed? Had the place been under attack by Muslim extremists? No...he told me. The provider of their credit card processing system had experienced a power outage...and they were currently only able to accept cash or checks as a form of payment for the merchandise that their customers were buying.

I was stunned. Could a rather minor inconvenience such as this be the cause of the mayhem that I was witnessing?

I walked over to the register section of the store...and I couldn't believe what I was seeing. With signs everywhere alerting the customers of the credit card problem, and the cashiers and managers patiently explaining to everyone that this was not the store's fault...the vast majority of the customers were still reacting as if someone had just insulted their parents. Whereas some of the customers seemed to be understanding, and fumbled through their pockets or purses in search of cash or a check...most of them either indignantly demanded that they be allowed to keep their groceries without paying for them...or they were disgustedly leaving their shopping carts behind...and walking out angrily.

Luckily...I still believe in carrying cash in my pocket...so I did my shopping without any problem. But as I was driving home, I couldn't help but wonder:

Have we really become THIS reliant on our credit cards? Would we still be able to survive without them?
does the store name begin with a "m"

[zico20]

Hey Thas,

was there an ATM machine nearby where people could go withdraw cash? The manager should have pointed one out if there was. Then again, some people don't know what cash is anymore.

[sammy the sage]

75% + in CC's my business....astounding...Thask is right...absolutely crazy...

[tucker6]

My business is split 70%/30% credit/cash. I couldn't survive without credit card processors. That said, the best policy would have been to post the signs and store manager at the entrance to alert customers of the situation. Once they waste their time shopping, a PR nightmare is created. Honesty is ALWAYS the best policy.

[Hoofless_Wonder]

Yes, we've become that reliant on credit cards and it's becoming even more extreme. When it comes to electronic transactions, you ain't seen nothing yet. The banks and .gov are very much in favor of outlawing cash to supposedly help deter drug trafficking, terrorism and other illegal activity. Of course what the banks want is a slice of the action from the CC fees, and .gov wants to control all finances to make sure you pay your taxes.

On the flip side, due to poor networking, security issues and suspect IT infrastructure supporting the electronic cards, outages like this are also the wave of the future. And of course let's not forget the ability of the .gov to shut things down at the flip of a switch when a bank holiday is necessary. Having a plan B (multiple cards, other stores to shop at, a small cache of the essentials at home, etc) will help alleviate the inconveniences of outages.

[Stillriledup]

I love stories like this.

Signed, cash only and no cards customer.

Thank you for being you. :ThmbUp:

[ManU918]

I think the world could survive but for some people its not about credit, debit or cash. When you use cash or debit what do you get with that? The product you buy and nothing else. When you use credit you pretty much have the availability depending on the card to get the product you purchase plus points towards anything else or cash back. Prior to this year I never owned a credit card, now that I do I would never go back to using cash for purchases. I've already built up over $1700 in "cash back" that I can do whatever I'd like with. It's almost like a savings account that you forget about until you go pay and your bill and you see it grow every month. Had I used the cash or debit option, I would be out of $1700 plus at this point.

[Robert Goren]

My business is split 70%/30% credit/cash. I couldn't survive without credit card processors. That said, the best policy would have been to post the signs and store manager at the entrance to alert customers of the situation. Once they waste their time shopping, a PR nightmare is created. Honesty is ALWAYS the best policy.Having gone through one these nightmares once, the one thing I remember most is the processor assuring me over and over again that they were only minutes away from being back and running. They were down over 12 hours.

[tucker6]

Having gone through one these nightmares once, the one thing I remember most is the processor assuring me over and over again that they were only minutes away from being back and running. They were down over 12 hours.
We had a problem at closing the other night and couldn't batch cc transactions. Took us 3 hours the next day to resolve and customers were not aware of our issue. Turns out that it wasn't the merchant services processor, but the point-of-sale (POS) equipment we use had a program error. I guess it had a fubar moment and had to be rebooted. However, we had to manually request batching in order to get paid before we rebooted. Otherwise, we would have lost our money. Once a card is swiped and handed back to the customer, the cc number is not known to the establishment. Only the merchant service company knows numbers. So if your POS and merchant services companies are not on their game that day/night, it is the store owner who loses out. As for using an ATM, that all sounds good, but unless you have one on premises, most customers are too pissed at you for not having your shit together to go the extra length to an ATM and then come back and shop.

[wisconsin]

Reminds me of the time when I owned a gas station, there was a power outage. People freaking out on me like I had something to do with it. It was such an inconvenience to drive 6 blocks to the next gas station or what?

[boxcar]

Yes, we've become that reliant on credit cards and it's becoming even more extreme. When it comes to electronic transactions, you ain't seen nothing yet. The banks and .gov are very much in favor of outlawing cash to supposedly help deter drug trafficking, terrorism and other illegal activity. Of course what the banks want is a slice of the action from the CC fees, and .gov wants to control all finances to make sure you pay your taxes.

On the flip side, due to poor networking, security issues and suspect IT infrastructure supporting the electronic cards, outages like this are also the wave of the future. And of course let's not forget the ability of the .gov to shut things down at the flip of a switch when a bank holiday is necessary. Having a plan B (multiple cards, other stores to shop at, a small cache of the essentials at home, etc) will help alleviate the inconveniences of outages.

Soon, cash will become outdated. All transactions will be by plastic cards. And I read somewhere not too long ago where Europe is already working on a cardless credit card! (Don't ask me how that will work, but eventually the credit industry will want to make plastic obsolete, too, for security reasons.)

[Clocker]

And I read somewhere not too long ago where Europe is already working on a cardless credit card! (Don't ask me how that will work, but eventually the credit industry will want to make plastic obsolete, too, for security reasons.)

Biometrics. Thumb print on a scanner, voice recognition, or a retinal scan. And Big Brother wants that even more than the credit industry. Everything you do and own in one big database.

[thaskalos]

I remember waiting to check out at a neighborhood bookstore a few years ago. The guy standing in line before me was holding a copy of a book titled How To Be Invisible...which offered advice on how to live your life without leaving behind any traces that could be spied upon and exploited by criminals or the government. As it got close to his turn at the register...he pulled out a credit card to pay for the book.

"You aren't thinking of buying this book with a credit card, are you?"...I asked him, with feigned incredulity.

"Why not?"...he replied, with a curious look.

"How can you be invisible when you buy things like these with a credit card?"...I asked him, with a curious look of my own.

He thought for a moment...and then told me: "Thanks buddy...I never thought of that. I'll come back and buy the book later, when I have the cash".

And he put the book down and walked hurriedly out of the store. :)

[Robert Goren]

Smart phones are well down the road of replacing credit cards.

[Tom]

So you would need a smart phone to buy a smart phone? :D


Looks I have a cash future - I have no need for any phone that does anything more than make phone calls.

[Flysofree]

I wonder if stores offered products for "cash" to be slightly cheaper than using a credit card if it would make a difference. Then again, they may not want to have the inconvenience of cash. Plus, maybe they run into other issues with cash being cheaper than credit cards.

[Flysofree]

Smart phones are well down the road of replacing credit cards.

and that's scary for this senior!

[Greyfox]

Well, there are still a few places in our town where the store uses an imprint machine and you sign the bill.
At one time every credit card was done that way.
You'd think that stores might have those standing by in the event of power outages or whatever.

Remember these?

http://images.huffingtonpost.com/2012-05-20-images-KnuclebusterImprinter.png

[GameTheory]

I wonder if stores offered products for "cash" to be slightly cheaper than using a credit card if it would make a difference. Then again, they may not want to have the inconvenience of cash. Plus, maybe they run into other issues with cash being cheaper than credit cards.
They used to, but newer laws and credit card company rules (if you want to accept credit cards at all, you must follow their rules) prohibit it for the most part. (There can be small fees for "alternative payment channel" options, like paying by phone.)