Preparing for cashless trading.

Preparing for cashless trading

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.35).

#banking, #barter, #cashless, #credit card, #demonetization, #Indian.

Cashless trading may come after the collapse of the ruling government or even when declared or indirectly created by the goverment. To survive, you need to be prepared.

When you have no cash and you want to pay someone 5 dollars worth of goods. You can:

1. Write a personal cheque. If it bounces then both the issuer (you) and the receiver who deposits it at a bank lose on the huge bank fines (commonly between 10 and 50 dollars, in Australia) for using a dishonoured (bounced) cheque. Who risks taking it?

2. Buy a Bank cheque of 5 dollars with an additional bank fee of about 7 dollars to pay the other party. This advertizes your status !

3. Use your credit card and submit to the torturous financial rules on paying HUGE FEES and FINES to the credit card company. This usually results in you paying the average price of about 0.5 dollars for using their “convenience”. If you violate any of their torturous “rules” you may lose up to one month (it can also grow to one year) of income if you are in a poor country!

4. If you have been trapped with buying useless things by credit cards, you have to pay the debt off before you can continue to use the credit cards. You do not have the right to wait for the rulings of Courts and Consumer Protection Organizations on the validity of the debts.

5. Form your own bartering group or join some existing ones and settle your owings on your payday.

6. Do direct bartering using locally produced goods and needed items. For examples, five lemons or five oranges or two chicken eggs for one dollar, a spark plug for 2 dollars etc…Bartering items are to be valued close to their current cash prices.
7. Use gold, silver, copper rings of known weights made by reputable local jewelers as precious metal standard local currencies.
8. If gold can be legally owned, it is the best cashless trading medium.

Figure: Vietnamese gold slabs for trading.

However, gold user should know that their governments may suddenly take away their gold [6].

The future does not hold bright for poor Indians at this moment. If the government can demonetize once, they will do it again and again.

References (updated Feb 03, 2017)

[1]. India rupee ban: Ex-PM Manmohan Singh rubbishes Modi crackdown, BBC News Services, http://www.bbc.com/news/world-asia-india-38088177, 24 November 2016.

[2]. Neha Sharma and Shalu Yadav, The Indian village that has returned to bartering, BBC News Services, http://www.bbc.com/news/world-asia-india-38180075, 5 December 2016.

[3]. Patrick Bodenham, Will Spain’s coal belt survive through online barter?, BBC News Services, http://www.bbc.com/news/world-europe-38731808, 2 February 2017

[4]. James Melik, Haggling and bartering gain appeal, BBC News Services, http://news.bbc.co.uk/2/hi/business/7883050.stm, 12 February 2009.

[5]. Mark Lowen, Greece bartering system popular in Volos, BBC News Services, http://www.bbc.com/news/world-europe-17680904, 12 April 2012.

[6]. https://mishtalk.com/2017/08/16/india-bans-gold-exports-without-a-valid-reason/

Added after 2018 Oct 23:

[7]. https://wolfstreet.com/2018/10/26/nirp-fades-swedens-central-bank-makes-u-turn-on-cashless-society/

[8]. https://riggedgame.blog/2018/10/28/swedish-central-bank-makes-u-turn-on-cash-as-nirp-is-ending/

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Avoiding high costs of credit cards on oversea transactions.

Avoiding high costs of credit cards on oversea transactions

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.33).

#credit card, #ripped off, #oversea, #purchase, #transaction

 

Have you ever felt ripped off when using your credit cards for oversea transactions?

You will get surprised when using your credit cards on oversea transactions. For each transaction, card issuers may charge you any or all of the following fees:

1. Fee for using the card outside the issuing country.

2. A separate fee for using a foreign card in the country of transaction.

3. A higher than cash price due to purchase with a credit card (about 3% to cover costs to seller).

4. A sizable profit margin on the foreign exchange rate (5% in Australia at this time of writing). I am not aware of any legal regulations to protect card users on this fat margin.

5. The card issuer has the right to view the fluctuating exchange rate for up to one year after your transaction and pick the most unfavorable time for your exchange rate and then make the bill for the transaction on that unfavorable date (as long as it is after your actual transaction and before the printing of the bill). So the bill will be dated on that unfavorable date but won’t be sent to you for a few months! The delay is due to their picking for your most unfavorable exchange rate.

You may have felt that they gave you some extra breathing space! They would say that you had been given the benefit of not having to pay for a few months.

6. Then they send the bill to you and you are given the benefit of upto 28 days interest free period to pay your total account.

If all the fees and costs from 1 to 5 outweights the benefit received in 6 (usually they do by a sizable amount) then you should better carry local currency (of visited country) to pay for your oversea transactions on the spot.

If you buy oversea goods on the internet, you should use Paypal which instantanously offers you the FINAL cost in your local currency BEFORE you make the final decision to go through with that transaction.

This is a small trick that can take care of YOUR COSTS in using your credit cards.

 

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