There was a time when I carried a checkbook with me nearly everywhere I went. We used to write checks to pay virtually all of our bills, and used checks to pay for the majority of our purchases. There were some places where checks were not accepted, and generally, businesses were reluctant to accept checks drawn on out-of-state banks. I typically carried cash for such situations, but I also knew that in most places, I would be able to cash a check at a bank with proper identification if needed. The first card I carried was a gas station credit card that was accepted only at one brand of station. The card did not offer extended payment plans. The full balance was due each month.

When the Visa Credit Card system was introduced, I was a student and initially did not qualify for a card. I finally got one with some help from my father, who was a merchant who accepted the card. The Visa card allowed one to spread payments out over an extended period, but the interest rates were higher than conventional loans.

I look back at those times and realize how different things are these days. I don’t carry a checkbook anymore, and I only write checks infrequently. Most of my bills are paid online. We use our debit card for the majority of our purchases. I still carry the card in my wallet, but most of the time I use the electronic payment option on my phone or watch that authorizes an exchange of funds from my bank account to the merchant. I also carry a credit card, and we use the card when traveling. We carry insurance against card fraud. The applications for phone and computer make it easy to monitor all transactions, allowing fraud to be caught quickly. There have been attempts at fraud against our cards, but in those cases, the financial institutions have been quick to resolve the issue. However, when fraud is attempted, cards need to be cancelled and new cards issued, which can result in a period of time without the card. It can also be challenging to receive a new card when traveling.

Having cards, however, is essential. We have encountered restaurants and other service providers that do not accept cash. Yesterday, when we used the county ferry to go to a nearby island, the only payment methods accepted by the ferry were cards and a pre-paid punch card that had to be purchased in advance. Recently, I asked a local merchant how they preferred to be paid. I expected the answer to be cash because the card system charges merchants fees through their point-of-sale systems. However, this merchant said they prefer card payments. They have found that employees make mistakes in cash transactions, that trips to the bank to have cash on hand for change are time-consuming, and that tracking cash transactions requires extra effort. This merchant estimates that it costs more for their business to complete a cash transaction than the cost of a card fee for an electronic transaction.

I have several young friends and family members who rarely carry any cash. They are used to making all of their transactions electronically. When they encounter a business that does not accept electronic payment, they either choose not to make a purchase or look for a nearby cash machine. On our recent trip, we made a small purchase at a shop that did not accept electronic payments. They had a cash machine right next to the service counter for those who did not carry cash.

Another change in transactions is the way electronic payment has affected tipping. I used to make tips with cash. When I was in a situation where tipping was expected, I would figure out a percentage in my mind and leave some money. In a restaurant, I would leave the cash on the table, hoping that the server, who had been gracious and probably was being paid a low hourly wage, would find it. These days, it is so easy to add a tip to a card transaction that most of my tipping is handled through my card. Many card systems offer the option of selecting a percentage instead of a specific amount. I have noticed that the suggested percentages have been increasing. A recent purchase at a coffee shop offered the choice of 20, 25, or 30 percent. I chose the “custom amount” instead of the suggested percentages. I was mildly offended that it didn’t offer a 10 percent option. There is no table service at a coffee shop. While the shop probably doesn’t pay a living wage and employees depend on tips, there is no way to direct a tip to an individual employee. Chances are, there is a tip pool that shares the tips with the counter salesperson, the person making the coffee, and other employees.

I have had a few conversations with friends who are opting out of tipping culture or at least tipping less than they used to, partly due to the subtle pressure to make large tips that is part of the electronic payment system. I prefer a system where tipping is not accepted. When we traveled to Japan, transactions were simpler because tipping is not part of the culture. In some European countries, a service fee is added to a bill in place of tipping. In both places, the amount to be paid is clear up front.

Some businesses have so many fees that it is hard to know what payment is required. When I get the price of airline travel, I know that there will be a host of additional fees, including taxes, service charges, baggage fees, and seat selection fees. The advertised price of a ticket does not reveal the actual cost of travel. One would expect that purchasing a ticket would guarantee a seat, but often this is not the case.

Our current system is confusing and inefficient. It would be simpler if wages were paid by employers and kept up with the cost of living so that workers were not dependent on tips. It would be simpler if the total cost of travel were reflected in the ticket price without the need for additional fees. But the system doesn’t offer these obvious efficiencies.

I’ll continue to make electronic payments, but I’ll carry a bit of cash and make my own decisions about the amount of tip to leave for workers.