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As Cash Fades, America Becomes A Plastic Nation
Wall Street Journal ^ | July 23, 2004 | JATHON SAPSFORD

Posted on 07/23/2004 11:18:57 AM PDT by BluegrassScholar

Whenever state trooper Michael Poupart pulls over a speeding motorist on I-94 in Wisconsin's Kenosha County, he offers to take Visa or MasterCard debit and credit cards right there on the side of the road.

Drivers initially look puzzled, until the trooper explains he has a card swiper onboard. "Then they say 'OK,' and hand over the card," he says. "They'd rather deal with it right there."

Trooper Poupart is one reason the nation passed a watershed last year. For the first time, Americans used cards -- credit, debit and others -- to buy retail goods and services more often than they used cash or check in 2003.

The nation now uses cards to subscribe to cable TV, pay taxes and hire Phil Marlowe, a 17-year-old in Tyngsboro, Mass., to cart stuff in the back of his Chevy Silverado. He carries a cellphone with a "PowerSwipe" snapped onto the back to handle his card transactions. His sales roughly doubled when he started advertising credit-card acceptance on the side of his truck. "One lady gave me a $30 tip just because I accepted cards," he says.

Vending machines, subway systems and charities now accept cards. The government is handing out cards in lieu of food stamps and child-support disbursements. Hip-hop mogul Russell Simmons is marketing a service that lets people put their paychecks directly onto a Visa card, giving consumers without bank accounts access to plastic.

At "Da Money," an online chat room where consumers trade financial tips, participants recently touted the benefits of Mr. Simmons's card. "For the Ladies, YES! There is a...'pre-paid' VISA credit card and it is PINK!" said one writer. "Let Puff Daddy top that!!!''

By letting consumers buy things with unprecedented convenience and speed, cards have transformed the economy. They have helped keep consumer spending strong even through terror attacks and recessions. When people pay with plastic, they tend to spend more -- often more than they have in the bank. Thus, credit cards also have fueled an explosion in consumer debt. It is expected to hit $838 billion this year, an increase of 6.8% from 2003 and more than double what it was ten years ago.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; Miscellaneous; News/Current Events
KEYWORDS: bankcard; cash; creditcard
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To: BluegrassScholar

This isn't new in Wisconsin. They have been doing this for years. Too many tourists and fishermen and vacationers from other state who never paid their tickets. This solves most of the collection problems.


21 posted on 07/23/2004 3:14:22 PM PDT by ridesthemiles (ridesthemiles)
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To: Grampa Dave

California DMV has required payment by mail for some time. You are NOT allowed to go to DMV just to pay registration unless you really have a problem. They get your smog check thru the electronic system, you enclose a check and a copy of proof of insurance and MAIL it. The form states this clearly. Paying thru AAA I don't understand, either.


22 posted on 07/23/2004 3:17:08 PM PDT by ridesthemiles (ridesthemiles)
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To: mtbopfuyn; quidnunc
quidnunc, do you have a link to the article about that Chicago reporter and her fight against the questionable activities of Officer Friendly in this corridor? I think it would dovetail nicely with this thread.

Friendly word to the wise: Speeding tickets in this corridor are BIG BUSINESS. The local municipalities rake in millions every year. Keep it under 10mph over the limit and spend that hard-earned cash on souvenirs instead!
23 posted on 07/23/2004 3:20:12 PM PDT by BraveMan
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To: BraveMan
BraveMan wrote: quidnunc, do you have a link to the article about that Chicago reporter and her fight against the questionable activities of Officer Friendly in this corridor? I think it would dovetail nicely with this thread.

http://www.suntimes.com/output/laney/cst-edt-laney17.html

http://www.suntimes.com/output/laney/cst-edt-laney14.html

24 posted on 07/23/2004 4:05:12 PM PDT by quidnunc (Omnis Gaul delenda est)
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To: ridesthemiles

One of the reasons I joined AAA all most three decades ago was to be able to renew the licenses each year our local AAA office. We will be 30 year members this year. I haven't gone to DMV nor paid a bill by mail for 30 years. So I was not aware of them not allowing registration payment at the office.

Anyway the computer system worked great. I printed out a copy of the end result and it is stapled to my wife's insurance form and in one of her glove boxes.


25 posted on 07/23/2004 4:15:45 PM PDT by Grampa Dave (Inability to recognize the serious crimes done by the Bergular are symptons of Mad Troll Disease!)
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