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I remember reading that credit cards lower the transaction threshold substantially so it's worth it to businesses to pay the higher transaction fees. I can't r

I remember reading that credit cards lower the transaction threshold substantially so it's worth it to businesses to pay the higher transaction fees. I can't remember where (might have been HN or patio11), but it was a business owner arguing that the rewards to incentivize card use are better for the businesses overall.

cortesoft 7y ago
So many restaurants around here have gone card only. Not having to deal with cash is worth the 2% for a lot of businesses.
- ghaff 7y ago
  I think a lot of folks seem to assume that dealing with cash is free, which it isn't of course. The biggest win probably comes if you can dispense with cash entirely though that isn't always possible for various reasons. (It's actually illegal for restaurants not to take cash in some US jurisdictions.)
  - fossuser 7y ago
    I was curious about this. What I found was that at least in the US you must accept cash for the payment of a debt. This means in restaurants and stuff where you pay after you're served they must accept cash, but when you pay first they don't have to (unless there are other state laws that require it). I'm not super confident I have this right, but I thought it was interesting. Some states allow workarounds like cash to card machines at the location (you can input cash and get a gift card to use) - I think Amazon was doing this for some of their GO stores so they don't exclude people without bank accounts.
    - ghaff 7y ago
      >This means in restaurants and stuff where you pay after you're served they must accept cash, but when you pay first they don't have to (unless there are other state laws that require it). IANAL but I'm not sure how big a factor this is. There's a lot of mythology around the "legal tender for all debts" language but I'm not sure how much of it has a real legal (or practical) basis. In the real world, if you eat your meal at a credit card only place and you then tell them you don't have a card, I imagine they'll find a way to take your money--not because of some arcane legal reason but because cash is better than nothing.
      - fossuser 7y ago
        I'm not aware of any credit card only places that serve you food first (all the ones I know are like Sweet Green - chipotle style order/pay first before food). Are there any not like this?
        ghaff 7y ago
        No idea. Credit card only isn't all that common in my experience other than situations where it's sort of inherent (planes, food delivery, and so forth). Sit-down may (rarely) be cash only in the US but I'm not sure I've ever personally run into a CC-only restaurant where I'm in the physical location. They do exist apparently but they're rare and, yes, I think they're probably mostly fast casual sort of places where you order at the counter.

cortesoft 7y ago

So many restaurants around here have gone card only. Not having to deal with cash is worth the 2% for a lot of businesses.

ghaff 7y ago
I think a lot of folks seem to assume that dealing with cash is free, which it isn't of course. The biggest win probably comes if you can dispense with cash entirely though that isn't always possible for various reasons. (It's actually illegal for restaurants not to take cash in some US jurisdictions.)
- fossuser 7y ago
  I was curious about this. What I found was that at least in the US you must accept cash for the payment of a debt. This means in restaurants and stuff where you pay after you're served they must accept cash, but when you pay first they don't have to (unless there are other state laws that require it). I'm not super confident I have this right, but I thought it was interesting. Some states allow workarounds like cash to card machines at the location (you can input cash and get a gift card to use) - I think Amazon was doing this for some of their GO stores so they don't exclude people without bank accounts.
  - ghaff 7y ago
    >This means in restaurants and stuff where you pay after you're served they must accept cash, but when you pay first they don't have to (unless there are other state laws that require it). IANAL but I'm not sure how big a factor this is. There's a lot of mythology around the "legal tender for all debts" language but I'm not sure how much of it has a real legal (or practical) basis. In the real world, if you eat your meal at a credit card only place and you then tell them you don't have a card, I imagine they'll find a way to take your money--not because of some arcane legal reason but because cash is better than nothing.
    - fossuser 7y ago
      I'm not aware of any credit card only places that serve you food first (all the ones I know are like Sweet Green - chipotle style order/pay first before food). Are there any not like this?
      - ghaff 7y ago
        No idea. Credit card only isn't all that common in my experience other than situations where it's sort of inherent (planes, food delivery, and so forth). Sit-down may (rarely) be cash only in the US but I'm not sure I've ever personally run into a CC-only restaurant where I'm in the physical location. They do exist apparently but they're rare and, yes, I think they're probably mostly fast casual sort of places where you order at the counter.