Why Using Your Debit Card or Credit Card Makes Sense

Today I received the following message. One of the countless forward messages which do rounds across various messaging apps but definitely worth taking note of.

The message is as follows

Suppose 500 people visit bigbazaar daily. No one collects change.
500×1= rs500.
For 365 days, 500×365 = rs 1,82,500
This is from ONE bigbazaar MARKET.

There are 1500 bigbazaar markets in the country.
rs 1,82,500×1500 = rs 273,750,000

27 crore per year.
& the worst part about this is, IT'S NOT EVEN TAXABLE because the bill doesn't count the one rupee, remember?
Now you know why they always put price tags like 49/- 99/- 999/- only?

Anyone who has ever been to any supermarket (or even shops for that matter) will easily relate to the scenario illustrated. It's a very common thing. At times the shopkeeper or the person at counter hands over a sweet supposedly worth the value of the balance exchange amount. Surprisingly though you as the customer cannot reverse the favour i.e. pay in kind if you don't have exact change. That's not acceptable. But if the shopkeeper does the same because he genuinely does not have the change so you have to cooperate or take the trouble of getting the change. Many to avoid inconvenience of running around requesting for change agree to let go off the change in favour kind.

The following clip from a Nana Patekar moive explains it all

This money is over and above the bill since it does not get accounted for. That is where Credit and Debit cards come in handy. For the shopkeeper or the executive at the counter is then required to charge you the precise amount. For e.g. if your bill amount happens to be Rs. 258.25 paise, that's what you pay.

Now let's look at the same bill amount with cash.

First in all probability the 0.25 paise gets rounded off to next rupee since exact change is not available. That's 0.75 paise extra. which makes it Rs. 259.

Now for the balance Re. 1 for which the supermarket executive or the shopkeeper does not have the change so he hands over a sweet supposedly of Re. 1 worth.

Just because you paid cash you happened to pay Rs. 1.75 extra which is not going to get accounted for.

One might be tempted to argue that while paying taxes the the amount gets rounded off nearest multiple of Rs. 5/- or Rs. 10/-.

Let's consider this scenario too. While paying the taxes to get rounded off to the next immediate it will still not be more than a minimum of Rs. 1 to a maximum Rs. 9. That's peanuts compared to the shopkeeper or supermarket has pocketed since all of it is cash.

Hence paying through card is worth every bit. For not only you pay the precise amount, but the transaction is transparent, it gets recorded leaving a trail and limits creation of black money. With the level of safety measures going up it would be great if people started using the plastic money more.

There are other benefits too

1) Tallying of cash would be reduced..since it has to be done for multiple denominations

2) Carrying of cash would be reduced since the transactions would be paperless

3) This in turn would reduce wear and tear of currency notes thereby reducing the need to print notes.

To me it makes perfect sense. So the next time you are at supermarket or shop which does accept cards to prefer to pay by the card rather then in cash.

The Power We Yield - A Reflection on Meiyazhagan

I recently watched a Tamil movie that left me reflecting deeply on the intricate, often unseen threads of connection that bind us to others. Despite having watched it twice and appreciating its nuanced storytelling, I still struggle to pronounce the name of the mysterious relative, Meiyazhagan . The name may evade me, but the emotions it evokes resonate deeply. The story unfolds with Arul, a man who embarks on an emotional journey to reconnect with his roots. During his visit to Thanjavur, Arul is shown his childhood bicycle, now a cherished relic in the home of a relative he barely remembers. The bicycle, meticulously maintained, symbolizes resilience and love—it once served as a livelihood tool for the family and now stands as a "god" in their household. The relative, referred to as Nandhini’s husband, shows unwavering affection and generosity toward Arul, despite the latter's inability to recall his name or their shared history. This anonymity does not dimi...

Day 19 - The Power of Multidisciplinary Approach

In an era of specialization, many of the world's most successful people advocate for a broader, more holistic view—one that embraces a multidisciplinary approach to life. This approach involves combining knowledge and skills from various fields, leading to better problem-solving, creativity, and adaptability. Think of a Renaissance person like Leonardo da Vinci, whose expertise spanned art, science, and engineering, shaping innovation for centuries. Today, the importance of a multidisciplinary mindset has become even more crucial in navigating the complexities of modern life. The Impact of a Multidisciplinary Approach David Epstein’s book, Range: Why Generalists Triumph in a Specialized World, provides compelling arguments for why those who explore a wide variety of interests often outperform their more specialized peers in the long run. Epstein highlights examples from sports, business, and science, showing that people who dip their toes into different fields are often...

The 70+ Hour Work Week Debate: An Intentional Grab for Attention or a Serious Commentary?

The recent debates surrounding the idea of a 70+ hour work week have sparked intense reactions, drawing both applause and criticism. While some view it as a badge of honor for high achievers, others see it as an outdated notion that glorifies burnout. But a deeper question emerges: is this debate merely a deliberate attempt to grab eyeballs and enjoy a fleeting hour of glory? In today’s media-driven world, controversial statements often gain disproportionate attention, flooding news feeds and capturing the public’s imagination. Leaders making such proclamations may find themselves in the limelight, relishing the buzz around their bold, albeit polarizing, remarks. But at what cost does this attention come? The Underlying Risks and Downsides The glorification of excessive work hours raises several pressing concerns: Burnout Culture : Does endorsing 70+ hour work weeks perpetuate a culture where exhaustion is equated with success? How does this impact mental health and well-be...

Connecting with thoughts - My thoughts and Me

Search This Blog