Are Young Adults Really as Cash Free as You Think?

Jun 23, 2015

With all of the features that smartphones now offer coupled with the increasing number of apps like Facebook Messenger and Snapcash, you would think that the majority of young Americans would have forgotten all about traditional forms of payment. The general belief is that young Americans, used to having everything at their fingertips due to the digital age, would be completely switched over to the digital cash-free payment systems. Cash no more.

According to Federal Reserve Bank of San Francisco analyst, Doug Conover, this is simply not true. A study conducted by the Federal Reserve Bank that asked people to keep a spending diary revealed that young adults (18-24) use cash for nearly half of their purchases. Cash still plays a very big part in young adults’ spending.

It would seem that the biggest influence on young adults’ spending habits is what they have seen or haven’t seen at home. Young adults are very cautious about the mistakes they saw their parents make growing up, especially when it comes to money. This is great for those who use that experience to be more conscious of their spending habits – that includes the method used to make their purchases.

Everyone is different when it comes to how they look at spending. Some young adults feel that it is easier to control what they spend by using cash. It is “painful” to see those bills leave their wallet. On the other hand, some individuals find that it is too easy to spend a bill here and spend a bill there until they have no cash left.

Some young adults manage their money better by using digital means. Too them, every time they swipe their debit card they know that money is leaving their account. They prefer to pay with plastic, but not necessarily with a credit card. Some students have revealed that they use their debit card in order to keep a close eye on their spending.

Cash shouldn’t become a thing of the past. The envelope method, for example, remains one of the most effective ways to control and manage spending. When you receive your paycheck, slip the money you need for each bill – mortgage, electricity, utility, internet, etc. – in an envelope created specifically for each expense. This makes it easier for the individual to see where their money is going and prevent excessive spending.

Young adults are not the only ones that find themselves in difficult situations with spending. Sometimes situations that are completely out of one’s control can put an individual or a business in a tough situation. Thankfully, merchants can obtain a bad credit merchant account from an alternative lending source like eMerchantBroker. Waiting for approval from a traditional lending source not only slows down your business, but it can also make things seemingly impossible when you find out that you’ve been denied. A bad credit merchant account can help you get back on your feet, help you manage your situation and get you started back on the right path.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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