> Credit card transactions take far less, and they deal in legitimate risk (chargebacks, stolen cards, fraud, etc). For high volume merchants. For mom and pop

> Credit card transactions take far less, and they deal in legitimate risk (chargebacks, stolen cards, fraud, etc). For high volume merchants. For mom and pop shops they usually pay a fixed fee + %. For transactions under $5 they can lose money on a sale which is why you quite often see minimum purchase prices or discounts when paying with cash. In some states however there are no laws protecting small businesses and processor contractors usually have a clause forbidding merchants from steering customers away from paying with a card. A local baobao shop by me offers a 10% discount for cash transactions, that tells me they make more money offering a 10% discount than accepting a card. When I was in Georgia my drycleaner told me she didn't make money on any card transaction under $25.