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The other day, I paid cash at the local Chinese-American place, and the owner said "thank you for using cash, it helps small businesses", which took me by surpr
by yaky 3y ago
The other day, I paid cash at the local Chinese-American place, and the owner said "thank you for using cash, it helps small businesses", which took me by surprise. So I asked how much card processors charge, and she went on a bit of a rant, listing processing fees for everything from regular debit cards* charging 3-4% to rewards credit cards being around 7% to special international or world credit cards charging something like 17%. And most of them have a very narrow window to correct or void the transaction. With such rent-seeking behavior by banks, I very much understand wanting to keep cash around.
* Debit cards charged as debit, by entering a PIN. Some terminals allow you to "bypass PIN" and/or automatically charge debit cards as credit. I don't know, it's shady.
- notso411 3y ago[dead]
- dazc 3y agoWe have some small traders in the UK who insist on a minimum spend for accepting cards because of the fees levied. It doesn't really make any business sense although I appreciate the sentiment behind it.
- infinitecost 3y agoWhat part of the world? In the US at least this experience would only apply to a business owner that was getting absolutely fleeced by their processor.
- HomeDeLaPot 3y agoI wish more businesses would (could?) give cash discounts. It's the answer to the convenience and rewards offered by credit cards. If I can save as much or more by paying in cash as I can by paying by card, then I have a great motivation to start carrying cash around!
- yaky 3y agoSeveral small businesses in my city do charge 3% for using a card. So that is like a cash discount. Many gas stations (usually ones serving trucks) have cash discounts for fuel, too. (US, midwest)
- dpkirchner 3y agoThis is the first I'm hearing of double digit rates -- what cards are those? I'd definitely like to avoid them.
- yaky 3y agoI don't recall exactly, I believe it was some type of business cards, or cards for travel and international use.