About
The Alphabet City Cash Collective is a grassroots initiative to address the exploitative credit system that weakens local economies, extracts wealth, and traps people and businesses in cycles of debt. While big corporations rake in obscene profits, small businesses and individuals pay the price.
Here’s how it works: Look for the Alphabet City Cash Collective decal on storefront windows (the same logo you see on this website) or check out the map of participating businesses on our home page. These businesses offer a discount to customers who pay cash, typically around 1-2%. While the discount might seem small, it adds up for both you and the small businesses, who avoid losing up to 4% per transaction to credit card networks and big banks.
Don’t typically carry cash? That’s a great reason to join the Lower East Side People’s Federal Credit Union, located right here in the neighborhood. The credit union offers free access to cash at its branch on Avenue B and 3rd Street and through its network of ATMs. Even better, the credit union is owned by its members and provides affordable, responsible credit options designed to help build wealth in the community.
Alarming Facts About Credit Card Networks and Big Banks
- $160 billion in fees annually: Credit card companies and big banks collectively extract over $160 billion a year in fees from consumers and businesses each year. This staggering figure underscores the extent to which they profit from our daily transactions.
- Predatory profit margins: For every $100 spent on a credit card, up to $4 or more goes directly to the card networks and their banking partners—money that could otherwise stay in the local economy.
- Staggering corporate profits: In the first quarter of 2024, Visa reported a jaw-dropping 57% profit margin, highlighting how these companies exploit their monopoly power to extract vast sums that far exceed the actual cost of processing transactions.
- Small businesses disproportionately impacted: Credit card fees represent one of the largest expenses for small businesses, cutting deeply into profits and forcing some to raise prices, lay off workers, or even close shop.
- The debt trap: Credit card debt in the U.S. has reached a record-breaking $1.3 trillion, with average interest rates exceeding 20%. These crushing rates further enrich banks at the expense of consumers.
By embracing cash, we can:
- Reduce the power of predatory corporations.
- Put more money back in the hands of small businesses.
- Keep more of our hard-earned money in our pockets.
- Strengthen our local economy, keeping our money circulating right here in Alphabet City.