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78% of those surveyed, in contrast, preferred to pay for things with a credit or debit card. The shopper has minimal liability, and often no liability at all.

Just a decade or two ago, most people used cash for most things. Are there any downsides to using credit cards instead of cash?

In the context of donations, the authors found that those who paid cash were 9.9% more likely to donate again over the course of a year than those who donated using a credit card. The world is moving rapidly towards payment methods that are more and more convenient and less and less painful.

Stores encourage us to brandish our credit cards, and increasingly, to use our smartphones to pay in seconds with a click of a button.

In a 2008 paper in the “the more transparent the payment outflow, the greater the aversion to spending or higher the ‘pain of paying’ …leading to less transparent payment modes such as credit cards and gift cards (vs.

cash) being more easily spent or treated as play or ‘monopoly money.’” Raghubir and Srivastava argued that using credit cards dulls the ‘pain of paying’ for two important reasons: (1) there is a separation in time between when the credit card is used to buy something and when the bill has to be paid; and (2) using a credit card allows different purchases to be mixed together.

The researcher team found that the shopping baskets of those who paid with credit cards had a larger proportion of impulsive and unhealthy food items like ice cream, candies, cookies, and potato chips. This is what the authors had to say: “Our conceptualization is based on the premise that when consumers encounter vice products - such as cookies, cakes and pies – the emotive imagery and associated desire trigger impulsive purchase decisions.One recent industry study found that only 14% of American consumers use cash for everyday purchases.

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