Pain Of Paying

What is the pain of paying?

The pain of paying is the unpleasant feeling associated with spending money. It can affect purchase decisions and enjoyment of what is bought.

Prelec and Loewenstein (1998) describe mental links between payments and consumption. A payment can bring a purchase's cost to mind; the perceived benefit can, in turn, justify the expense. How closely payment and consumption are linked matters.

Payment methods and the pain of paying

Payment timing and visibility can change that connection. However, cash, checks, debit cards and credit cards should not be placed in a universal ranking of discomfort. Their effects depend on the task and the consumer. The cited paper does not show that an abstract payment method always reduces pain or increases spending.

Pain of paying example

Imagine paying for a meal at the moment you eat it, compared with eating a meal paid for weeks earlier. The example separates the timing of payment from the experience of consumption. It invites a question about how much the cost comes to mind; it does not assume that everyone enjoys the prepaid meal more.