5 ms·

> For a single transaction, is it even possible to make a transaction with a credit card when: - The chip/card reader fails? - The network connection is down? -

> For a single transaction, is it even possible to make a transaction with a credit card when: - The chip/card reader fails? - The network connection is down? - There's a power outage? I use cards for 99% of my payments. For me, this simply hasn't been an issue in actual reality. In fact, I've had far more issues getting cash into and out of the handful of ATMs in my area that work with my credit union. I keep about $100 in each car and $1000 in my house in case I find I desperately need cash. The car money comes in handy sometimes if there's a cash discount for gas or I drive someplace and realize I've forgotten my wallet.

martyvis 5y ago
Why would a gas station offer discount for cash for any reason other than to avoid it going through the books and hence avoid obligations like paying tax or their staff a proper wage?
- dhosek 5y ago
  To save on the credit card fees. Gas stations are one of the few businesses which are allowed to offer cash discounts in their merchant agreements.
  - bee_rider 5y ago
    Interesting! Any idea why that is?
    - kasey_junk 5y ago
      Because the margins on gas are tiny. The gas stations would have never had any credit card uptake without it and people have to buy gas and are extremely price sensitive so would have continued shopping at cash only gas stations. Unlike say a clothing store where the convenience of credit overcomes the price sensitivity, you can defer the purchase and the merchant has higher margins.
  - acjohnson55 5y ago
    A lot of places do this, whether it is "allowed" or not. But my understanding is that after much push and pull between merchants and processors, most processors do allow it.
- bee_rider 5y ago
  Card payment processors charge the merchant some premium. Usually their contract with the merchant prevents passing the fee along to the customer. A cash discount could be a way to get more customers to pay in cash, which avoids the credit card company's cut. This is probably violating the terms of the merchant/card company contract, but I dunno, hard to resent the merchant here given the power imbalance between them and the card processors. How would using cash would be an effective way of denying the gas station's staff a proper wage? I suspect most gas station staff is hourly, rather than... I dunno, tipped or commission. Cash could certainly be a way of avoiding some taxes.

martyvis 5y ago

Why would a gas station offer discount for cash for any reason other than to avoid it going through the books and hence avoid obligations like paying tax or their staff a proper wage?

dhosek 5y ago
To save on the credit card fees. Gas stations are one of the few businesses which are allowed to offer cash discounts in their merchant agreements.
- bee_rider 5y ago
  Interesting! Any idea why that is?
  - kasey_junk 5y ago
    Because the margins on gas are tiny. The gas stations would have never had any credit card uptake without it and people have to buy gas and are extremely price sensitive so would have continued shopping at cash only gas stations. Unlike say a clothing store where the convenience of credit overcomes the price sensitivity, you can defer the purchase and the merchant has higher margins.
- acjohnson55 5y ago
  A lot of places do this, whether it is "allowed" or not. But my understanding is that after much push and pull between merchants and processors, most processors do allow it.
bee_rider 5y ago
Card payment processors charge the merchant some premium. Usually their contract with the merchant prevents passing the fee along to the customer. A cash discount could be a way to get more customers to pay in cash, which avoids the credit card company's cut. This is probably violating the terms of the merchant/card company contract, but I dunno, hard to resent the merchant here given the power imbalance between them and the card processors. How would using cash would be an effective way of denying the gas station's staff a proper wage? I suspect most gas station staff is hourly, rather than... I dunno, tipped or commission. Cash could certainly be a way of avoiding some taxes.