Brain response – Credit cards versus Cash

Comment: I found this interesting news article about differences when we pay for products using credit cards or cash – It appears that using credit cards activates the reward system in ways that cash does not! Link to article and original study below:

Using credit cards stimulates the brain’s reward system and an urge for further spending, according to a recent study from MIT that examined the neuroscience of buying things.

Credit card shopping tells us to “step on the gas” and leads to more “purchase cravings” in the future, Drazen Prelec, study author and professor at the MIT Sloan School of Management, said in a release.

Previous research has shown that people tend to spend more when paying with a credit card versus cash. For this new study, researchers used MRI machines to see what’s happening in the brain when people are prompted to buy an item with cash or a credit card…
Full article: CNBC Make It