Cash Is the Most Used Payment Method After Debit Cards

Cash Is the Most Used Payment Method After Debit Cards

December 6, 2018         Written By Bill Hardekopf

Despite the vast number of payment options available today, cash remains a prominent part of our society. According to Cardtronic’s Health of Cash Study 2018, 73% of Americans use cash on a regular basis.

For many, cash acts as a security blanket: 64% of respondents said they felt anxious without cash on hand. Nevertheless, cash remains the second most preferred payment option, with 37% choosing debit cards and 28% choosing cash. Credit cards were in a close third at 20%.

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Cash is the most preferred backup payment option. Twenty-nine percent of respondents say they prefer cash as a secondary payment option. This was followed by digital payments at 23% and debit cards at 21%.

Cash is most often used for low-value purchases. Nearly 60% of consumers use cash for purchases under $10, and 56% prefer cash for $20 to $30 transactions. Debit cards were preferred for mid-sized purchases, while nearly half of consumers chose credit cards for purchases over $200.

Debit cards have made checks almost obsolete, with only 2% of participants choosing checks for their preferred payment. However, checks surpassed all other payment options when it came to making mortgage or rent payments.

Surprisingly, cash was considered just as convenient as credit cards and more convenient than debit cards. It was also considered easier to use than cards and mobile wallets. Respondents said they felt cash was more secure than payment cards, and was better for budgeting.

The information contained within this article was accurate as of December 6, 2018. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.