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Comment by melling | Hacker News Reader

How about a no currency solution? I use credit cards for most transactions over $10. There should be a way to pay for small items with no transaction fee. Real cash will last much longer and payment lines will move quicker.

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Call me paranoid, but I don't like the idea of all my money transactions being traceable. It's less that I worry about my bank or government but about, for instance, super-market chains linking my buying-behavior to my bank account or card number.

You're not the only one. There's a sizable underground economy in this country that feels the same way about traceability. Organized crime, drug transactions, and black market goods represent an enormous amount of currency exchange. Even non-nefarious businesses like local laundromats or sidewalk vendors deal in cash with the advantage of being able to skimp on their tax reporting.

It would be interesting to see the effects on these "industries" if we were to move to a purely electronic exchange of money.

HN readers aren't your average slice of America. A large chunk uses cash for everything, and can't get even checking accounts, let alone a credit card.

"A large chunk uses cash for everything, and can't get even checking accounts"

If you mean day laborers or migrant workers, I've seen first-hand some employers now pay them with rechargeable AmEx or Visa cash/gift cards like Green Dot. Keeps the shift supervisor from having to carry conspicuous wads of cash around, and it's directly deposited on their card at the end of the shift, so no need for lineups.

I didn't say the solution had to be a credit card. There are a few options. I bet most people have cell phones. A quick Google says around 17 million people don't have a checking account. You could sell pre-paid cash cards too.

> There should be a way to pay for small items with no transaction fee.

Hm... I'm thinking of something universally accepted, something that doesn't need relatively expensive handling equipment, something anyone can get and anyone can exchange for goods and services...

This something sounds like cash to me.

Why should there be no fee? Square has already removed the fixed portion of their fee so it is just 2.75% (not ~$0.30 + ~3%). This helps with small transactions. Eventually their competition will have to do the same.

Because for some products, that's most of the profit margin gone.

3% is most of the profit margin? Really?

http://biz.yahoo.com/p/s_qpmu.html

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