Use of "Plastic" Increases 20%
Plastic money or debit cards has seen an increase of use of 20% this year. The national credit card processors - Credomatic and ATH - report more than 3 million debit and credit card transactions.

December is traditionally the most risky month to carry cash, especially in the downtown area. Carrying plastic decreases the risk of loss, since the card can be immediately cancelled and is of no use at automated teller machines (ATM's) without a pin.

Credit card processors issue notices to retailers, especially during the holiday period, to ask for a picture identification of customers using their card instead of cash. Many retailers follow this practice, especially on larger purchases, but the shopping frenzy and long lines at checkout counters sometimes makes the practice impossible.

In Costa Rica, cash and cheques are becoming less common every day.

All government agencies and many private businesses pay their employees by direct deposit and the lines at cash machines on the 15th and 30th of each month are long. Using plastic is much simpler, even if it is to buy an ice cream cone at McDonalds.

Almost every retailer now accepts plastic. It is not uncommon to go to an Aliss, a major department store, and find 40 or more credit card processing machines at the check out counters. Each cash register is equipped with two card machines, one supplied by ATH which accepts Visa transactions and the other by Credomatic, which accepts all major cards including Visa.

Retailers also prefer the use of plastic, reducing the risk of theft and mistakes by employees handling cash and being victim of a hold up. Plastic also eliminates the risk of loss of life or injury in making a nightly cash deposit.

"I prefer to pay the discount (the rate charge by the credit card processors for handling the electronic transaction) than walking out of my store, the 100 metres to the bank, with a bundle of cash", Victor Gonzaléz, a retailer at Plaza Rohmoser told us.

The discount can vary anywhere from 2% to 7%, depending on the business and volume.

Another benefit to card holders is bonuses paid by the issuing banks. The Banco de Costa Rica (BCR) pays a 1% cash back bonus to it's customers who use a debit or credit card to make their purchases. The bank during a study found that it was more profitable to have its customers use plastic than visit a branch or ATM to withdraw cash. The bank does not, however, offer the cash back bonus on payments made online through its website. For instance, paying your phone bill using your plastic at the telephone company will earn you the 1% cash back, but paying online will earn nothing.

Private banks offer its credit card customers "miles" which can be exchanged for merchandise and services, including airline tickets. Banco Interfin, one of the largest private banks, is offering it's credit card customers "double miles" during the month of December.

So, be patient, when in line at the supermarket or fast food restaurant and the person ahead of you pulls out plastic to pay for a chocolate bar or soda. It is the way of the future!