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Thats purely the banking fee. Cash handling costs (everything from security to transport to audit) adds up to. Depending on the size of the business and their
by kasey_junk 4y ago
Thats purely the banking fee. Cash handling costs (everything from security to transport to audit) adds up to. Depending on the size of the business and their transaction mix it is extremely common for retailers to prefer credit cards to cash as they require less costs.
- matthewdgreen 4y agoIt's not really a natural decision. Card processors historically went to a lot of trouble to prohibit retailers from offering different prices for cash and credit (excepting gas stations.) Even today, after a Federal law prohibited the practice, card networks still make this challenging. https://www.pymnts.com/visa/2018/non-compliant-cash-discount-card-fees/ https://www.pymnts.com/visa/2018/non-compliant-cash-discount...
- kasey_junk 4y agoI don’t think that’s responsive to what I’m saying. There are merchants where the all in costs of cash is more expensive than their equivalent card costs. Those merchants wouldn’t want to give a cash discount, quite the opposite they’d want to give a card discount or prohibit cash transactions (though most would rather have the sale vs not so that is more rare).
- matthewdgreen 4y agoI don't disagree with you that there are such merchants. I'm just wondering whether that case would be as common in a world where card networks hadn't put their thumb on the scale. Merchant cash handling costs will be (proportionally) higher when cash payments are rare. And that situation is more likely in a world where card networks have conspired to ensure that customers receive little benefit from paying in cash, and just don't carry it anymore.