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I have to feel its misguided in some cases. Credit card transaction fees hit the hardest on small purchases, as they take a larger percent. A business thats l

by basch 7y ago

I have to feel its misguided in some cases. Credit card transaction fees hit the hardest on small purchases, as they take a larger percent. A business thats lots of tiny transactions might come out slightly ahead with cash, but now youre losing customers, and maybe not book keeping accurately enough to be legally compliant. I have noticed gas stations are more prone to this (along with very small business), although it happens on occasion at restaurants as well. I figure, with 3% restaurant rewards, I break even at 3% restaurant charge and or using cash.

nordsieck 7y ago
> A business thats lots of tiny transactions might come out slightly ahead with cash, but now youre losing customers Why would businesses that offers a cash discount (which means they also accept credit/debit) lose customers?
- ac29 7y ago
  I think they meant a business that only takes cash.
- smileysteve 7y ago
  Because card paying members may choose to shop the store where they don't feel like they're losing. Ie; gas station 1 has a 3c cash discount. Gas station 2 has no discount, but you don't feel like you're not getting the discount. Gas station 3 can even compete by having a 1c credit discount.
tlb 7y ago
Keep in mind that accepting cash isn't zero-cost. You need drop safes, daily pickups by secure courier, and you're at risk of robbery (especially for places open at night, like gas stations.) Depending on circumstances, it can cost more than 3%.
- basch 7y ago
  those are all things I put in my first comment above.
AlchemistCamp 7y ago
For me, even when buying things like new computers, it will cost 3%-5% more if I use a card. The dominance of cards is mostly American or, at the very least, location-dependent.
- basch 7y ago
  where as I feel I pay 2-5% less when using a card. Target and Amazon are both 5% off using the right card, vs 2% on a generic cash back card. Gas is 4% off on the costco card.
lotsofpulp 7y ago
The real savings are in not reporting the income for taxes, and even payroll taxes / insurance if you get to pay someone with cash with the cash you're given, and worth much more than saving a few % off credit card fees.
aledalgrande 7y ago
Actually a lot of cash only businesses are probably dodging taxes.

by basch 7y ago

nordsieck 7y ago

> A business thats lots of tiny transactions might come out slightly ahead with cash, but now youre losing customers Why would businesses that offers a cash discount (which means they also accept credit/debit) lose customers?

ac29 7y ago
I think they meant a business that only takes cash.
smileysteve 7y ago
Because card paying members may choose to shop the store where they don't feel like they're losing. Ie; gas station 1 has a 3c cash discount. Gas station 2 has no discount, but you don't feel like you're not getting the discount. Gas station 3 can even compete by having a 1c credit discount.

tlb 7y ago

Keep in mind that accepting cash isn't zero-cost. You need drop safes, daily pickups by secure courier, and you're at risk of robbery (especially for places open at night, like gas stations.) Depending on circumstances, it can cost more than 3%.

basch 7y ago
those are all things I put in my first comment above.

AlchemistCamp 7y ago

For me, even when buying things like new computers, it will cost 3%-5% more if I use a card. The dominance of cards is mostly American or, at the very least, location-dependent.

basch 7y ago
where as I feel I pay 2-5% less when using a card. Target and Amazon are both 5% off using the right card, vs 2% on a generic cash back card. Gas is 4% off on the costco card.

lotsofpulp 7y ago

The real savings are in not reporting the income for taxes, and even payroll taxes / insurance if you get to pay someone with cash with the cash you're given, and worth much more than saving a few % off credit card fees.

aledalgrande 7y ago

Actually a lot of cash only businesses are probably dodging taxes.