There is nothing more embarrassing than going to a store (which for me if very often) and having a card decline. I have personally never had a card decline due to lack of funds- the lines have always been down. But then you end up holding the line up and other customers get irrate and think that you are broke. Additionally, places that only take cash should be banned. I say this because I am spoiled rotten and American, but it is really embarrassing to be shown a sign that says "cash only" (not at the door of course, but at the register), and then realize that your cart is a lot fuller than your wallet.
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