5 ms·

0.3% vs. 3-4%

jasode 3y ago
>0.3% vs. 3-4% No, the total costs of handling cash currency & coins for large businesses will still add up to 3% or more which is in the range of the fees of credit-cards processing. Costs of accepting cash also includes: - paying for armored trucks and security guards to transport bags of cash to the bank - percentage of cash lost to crime such as --- employees/cashiers theft/skimming by handling cash, --- robberies, --- counterfeit bills https://www.google.com/search?q=retailer+total+costs+of+handling+cash https://www.google.com/search?q=retailer+total+costs+of+hand... For a business, a true arbitrage of not paying 3% credit-card fees would be convincing customers to pay by check or electronic ACH bank account withdrawal. Those payment methods avoid the costs of managing loose cash and also avoid the fees from the credit-card processors. But they also have the same privacy concerns as CCs if customers care about that aspect.
- Ekaros 3y ago
  Time spend managing the tills that you do not either have too much money at one time or have enough money always to give change... Oh and at the end of shift counting the money... Like today I returned some deposit bottles and they had run out of 20€ bills... Which should be the most common ones. Going on trip so I preferred 10€ bills, but still...
multjoy 3y ago
Square will do you 1.75%, no contract, no fees and now you don't even need a physical reader as you can do contactless payment on your phone. You can get it lower with other providers if you negotiate right. Nobody is paying 4% for any cardholder-present transactions.
- gruez 3y ago
  >Square will do you 1.75%, no contract, no fees Where? A quick search on their website shows 2.6%: https://squareup.com/us/en/pricing#rates https://squareup.com/us/en/pricing#rates
  - multjoy 3y ago
    Everywhere, apparently, other than the US. You should fix your banking system.
    - emeril 3y ago
      someone has to pay for our big rewards program!!! :) often as high as 2-2.5%
canucker2016 3y ago
In Canada, from a 2009 article, https://www.cbc.ca/news/card-costs-who-pays-what-to-whom-1.807339 https://www.cbc.ca/news/card-costs-who-pays-what-to-whom-1.8...: ==== How we pay - Credit cards account for 31 per cent of transactions. - Cash accounts for 29 per cent of transactions. - Debit cards account for 26 per cent of transactions. So what does it cost to process a transaction? The Bank of Canada survey looked at the estimated cost of processing a $36.50 transaction, which was the median cash transaction in its survey. Costs broke down like this: Debit card: 19 cents. Cash: 25 cents. Credit card: 82 cents. The study notes that the overall cost of electronic transactions falls as the volume increases, which the authors suggest, may encourage greater use of electronic payments. ====

0.3% vs. 3-4%

>0.3% vs. 3-4% No, the total costs of handling cash currency & coins for large businesses will still add up to 3% or more which is in the range of the fees of credit-cards processing. Costs of accepting cash also includes: - paying for armored trucks and security guards to transport bags of cash to the bank - percentage of cash lost to crime such as --- employees/cashiers theft/skimming by handling cash, --- robberies, --- counterfeit bills https://www.google.com/search?q=retailer+total+costs+of+handling+cash https://www.google.com/search?q=retailer+total+costs+of+hand... For a business, a true arbitrage of not paying 3% credit-card fees would be convincing customers to pay by check or electronic ACH bank account withdrawal. Those payment methods avoid the costs of managing loose cash and also avoid the fees from the credit-card processors. But they also have the same privacy concerns as CCs if customers care about that aspect.

Ekaros 3y ago
Time spend managing the tills that you do not either have too much money at one time or have enough money always to give change... Oh and at the end of shift counting the money... Like today I returned some deposit bottles and they had run out of 20€ bills... Which should be the most common ones. Going on trip so I preferred 10€ bills, but still...

multjoy 3y ago

Square will do you 1.75%, no contract, no fees and now you don't even need a physical reader as you can do contactless payment on your phone. You can get it lower with other providers if you negotiate right. Nobody is paying 4% for any cardholder-present transactions.

gruez 3y ago
>Square will do you 1.75%, no contract, no fees Where? A quick search on their website shows 2.6%: https://squareup.com/us/en/pricing#rates https://squareup.com/us/en/pricing#rates
- multjoy 3y ago
  Everywhere, apparently, other than the US. You should fix your banking system.
  - emeril 3y ago
    someone has to pay for our big rewards program!!! :) often as high as 2-2.5%

canucker2016 3y ago

In Canada, from a 2009 article, https://www.cbc.ca/news/card-costs-who-pays-what-to-whom-1.807339 https://www.cbc.ca/news/card-costs-who-pays-what-to-whom-1.8...: ==== How we pay - Credit cards account for 31 per cent of transactions. - Cash accounts for 29 per cent of transactions. - Debit cards account for 26 per cent of transactions. So what does it cost to process a transaction? The Bank of Canada survey looked at the estimated cost of processing a $36.50 transaction, which was the median cash transaction in its survey. Costs broke down like this: Debit card: 19 cents. Cash: 25 cents. Credit card: 82 cents. The study notes that the overall cost of electronic transactions falls as the volume increases, which the authors suggest, may encourage greater use of electronic payments. ====