Among other benefits, these cards have virtually eliminated the expense of preparing and distributing welfare checks. But privacy advocates fear that state bureaucrats could use the cards to pry into the personal lives of welfare recipients by tracing their electronic purchases. They're resented by the public, which thinks they should be monitored. The push for a cashless society is gaining momentum, however, if only because making money disappear is also a way of saving money. Keeping all that paper in use is a costly chore for the government.
Currency is cumbersome for businesses as well.
People have to count it, armored cars have to carry it, bank vaults have to store it and security guards have to protect it. Checks too are expensive to handle. Banks end up losing money on about half of all checking accounts, since the handling costs often exceed the interest earned on lending out the deposits. An electronic transfer, on the other hand, costs only 15 cents per blip. Some of the biggest users of electronic transfers have thus reaped substantial benefits.