Credit card and financial company experts say that cashless vending machines, allowing consumers to pay for convenient snacks using a major credit card, will soon be on their way to America, according to an article by consumer reporter Nancy Castleman at DebtSmart.com ("Credit Cards Come to Vending Machines: Students and All Consumers Beware").

Castleman writes that very soon, Philadelphia civilians and visitors will be able to buy their favorite Coke-based soft drink with their credit cards at about 1,000 different Coke vending machines spread throughout the state. She also writes that about half of all the vending machines in the U.S. will become credit card-friendly to its dedicated soft drink and snack-craving patrons by the year 2009.

The purpose of this vending-machine overhaul could really be seen as two-fold: One, to expand the already-booming credit card industry into another consumer market (i.e., vending machines); and two, to provide convenience to vending machine patrons, thus encouraging credit card usage.

This is good news for credit card companies who wish to promote and encourage their usage (although even now the credit card industry is pulling in billions upon billions of dollars each year), as well as for loyal vending machine drink-and-snack purchasers who are looking for that extra helping of convenience. If you love your snacks, enjoy a convenient lifestyle and are normally a wise and careful spender, this is great news!

But it may not be such good news for credit cardholders already deep in debt, tempted to max out their credit cards, and who frequent vending machines already. Vending machines that accept credit cards could potentially add further temptation and create financial problems. According to Castleman’s article, Americans are "expected to spend a whopping 50 per cent more when [they] can use a piece of plastic to buy snacks, soft drinks, and what-have-you from vending machines."

Fifty per cent more? That seems like a lot to pay for convenience. This increase in vending machine spending would be similar to the increase in spending in U.S. fast-food and quick-serve restaurants after credit cards were introduced several years ago, notes Automatic Merchandiser Magazine editor Elliot Maras, who was quoted in the article.

However, Castleman says that the new cashless vending machines that will encourage the use of credit cards for the sake of convenience throughout the country aren’t all. In addition to vending machines accepting plastic, they will also be stocked with completely new items—more than just snacks, candy and drinks. These new items will be bigger, better, more valuable and—you guessed it—more expensive, thanks to credit cards with high limits, beating out the "mediocre" chump change people carry around in their pockets, wallets and purses.

Not only that, but the vending machines themselves will have new, upgraded looks, and you’ll be able to find them in new and unexpected places, too.

Castleman cites one specific example in her article. Beginning in fall 2006, the major department store Macy’s will reportedly be selling iPods and more of the latest, coolest, hottest electronics, gadgets and gizmos in new, snazzy-looking vending machines that take credit cards only.

Castleman warns that parents may want to be concerned about cashless vending machines making their way into public schools, preying on young, innocent and vulnerable children. However, since when do children carry credit cards? The current cash-only vending machines filled with junk may be problematic for sweet-toothed or greedy children who somehow have a bunch of cash to spend. But credit card-only vending machines really shouldn’t affect kids, unless they’re out for a walk with a parent and happen to spot one of these vending machines.

The point of this credit card and vending machine "merger" is obvious: to encourage the use of credit cards and increase convenience for consumers. If a cashless vending machine is going to push you over the financial edge when you’re out in public, just stay away from it or don’t carry your credit cards with you.

However, you may end up jumping on the bandwagon the next time you’re out and about, craving a snack or drink and then find yourself completely cashless.

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