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Why the Swiss Still Love Cash (bbc.com)
gollum123 shares a report from the BBC: Last month, the Swiss unveiled a smart new banknote to stash in their wallets. The purple 1,000 franc bill was the latest in the Swiss National Bank (SNB) series to undergo a revamp. But this revamp comes as other nations are phasing out their high-value notes and as cash usage declines in European nations, albeit at greatly differing rates. In Switzerland, cash remains the dominant payment method. Here, there's an assumption everyone carries cash, even in an increasingly digital economy. Most don't get caught out buying a sandwich or paying for a haircut when the card payment machine is out of order. If you have to pay for a coffee with a 100 franc note, no need to apologize -- no one will ask if you have something smaller. And for those big-ticket items, some banks even allow you to withdraw up to 5,000 francs per day (or 10,000 a month) at the cash machine without advance notice. Buying a car that costs tens of thousands with cash is also not that unusual.
Why then do the Swiss prefer cash? Two simple reasons are that cash is widely considered to be part of their culture and people believe that using it allows them to track their spending more easily. In Basel, 53-year-old Chris Troiani confirmed this, saying many people she knows still prefer the reassurance of carrying big bills in their wallet. There's also the identity factor: the Swiss identify with cash in part because of how they see themselves. This is a nation which values privacy and doesn't like being told what to do. They see themselves as different to their European neighbors and closely guard those traditions which set them apart, such as languages, political system and currency.
Why then do the Swiss prefer cash? Two simple reasons are that cash is widely considered to be part of their culture and people believe that using it allows them to track their spending more easily. In Basel, 53-year-old Chris Troiani confirmed this, saying many people she knows still prefer the reassurance of carrying big bills in their wallet. There's also the identity factor: the Swiss identify with cash in part because of how they see themselves. This is a nation which values privacy and doesn't like being told what to do. They see themselves as different to their European neighbors and closely guard those traditions which set them apart, such as languages, political system and currency.
This is overblown -- the top countries for money laundering are probably the USA and Canada at this point. Who do you think is buying condos in NYC and Vancouver for tens of millions of dollars and leaving them vacant? Nah, the Swiss just respect their own citizens' privacy and have a culture of privacy that other countries would do well to emulate.
Swiss here. I typically carry cash for small purchases - why mess with anything else to buy your lunch? Cash is simpler. Second choice is a debit card from my bank (directly from the bank, not branded MasterCard or Visa), because this is free to me, and the transaction fee to the merchant is very small.
Apparently loved in the US, but not used quite so much here are credit cards. Credit cards are, factually, expensive. Those great point systems, cash-back, or whatever? Ultimately, you pay for those through higher prices, because the merchants have to pay whopping fees on the transactions. Why do that to yourself? Why do that to a merchant whom you actually like? I only use credit cards in cases where the fraud protection is important, mainly online purchases with vendors I've never dealt with before, or else with vendors silly enough to insist on payment by credit card.
Speaking of online purchases: most vendors here are happy to send you an invoice along with your purchase, rather than insisting on up-front payment. Just add it to the pile of other invoices you pay at the end of the month (via online banking). Cheaper for them (no credit card fees), simpler to order since you don't have to mess with a payment portal, and psychologically it's really nice gesture of trust. Of course, this only works in a society where most people really are that trustworthy, and will pay the invoice for goods they received.
Enjoy life! This is not a dress rehearsal.