This book sets out to study the economic effects of non-cash transactions on tax evasion using newly released data. The study makes use of a panel Instrumental-Variable model in the presence of endogenous variables and exogenous instruments and applies it to a 2000–2016 cross-country panel. The findings suggest that direct payments by credit and debit cards are an effective way to crack down on evasion, but card usage for replacing ATM cash withdrawals with net currency fosters VAT evasion. The IV- results also reveal – in contrast to earlier work in this area – that the impact of the use of wire transfer on VAT evasion has not been negative. The results indicate that the mere possession of a credit or debit card does not affect tax evasion, but the use of them for actual payments matters.