4 ms·
> ... shows that cash handling costs many retailers between 4.7 and 15.3 percent. This feels like a weaselly way of putting it. I want to know the average (or
by kelnos 2y ago
> ... shows that cash handling costs many retailers between 4.7 and 15.3 percent.
This feels like a weaselly way of putting it. I want to know the average (or median) cost of cash handling, not what it costs for "many" (whatever that means) retailers. It could be that the 15.3% figure represents costs that 0.01% of retailers have to bear, and that 4.7% is for 10% of retailers. And it could be that 90% of retailers spend less than credit card fees managing cash.
Or they could mean what you want them to mean, and it really is more expensive than credit card fees for the median business to manage cash. But from their wording, it's hard to know the truth behind it.
Sniff-test-wise, I find it hard to believe that gas stations (and other retailers) would offer a cash discount if cash was actually more expensive for them to handle than credit cards. It seems unlikely that they wouldn't have come up with that without at least some research to quantify their cash-handling costs.
- Reubend 2y ago> Sniff-test-wise, I find it hard to believe that gas stations (and other retailers) would offer a cash discount if cash was actually more expensive for them to handle than credit cards. It seems unlikely that they wouldn't have come up with that without at least some research to quantify their cash-handling costs. Well said. I totally agree, and I can't imagine any basis in reality for cash handling costing retailers 4.7% (much less 15.3%). Sure, cashiers need to handle change, but that's not a big cost compared to turnover for most businesses.
- Ekaros 2y agoThere are lot of other steps as well. Like counting the till, depositing the big bills and possibly getting more change. As in general lot of cash users use larger bills compared to the change. Moving this cash around, guarding it. Recounting it at times. Work spend outside the transaction with the customer. And it is not like bank will always offer free deposits or give out the right amount of coins for no fee.
- chgs 2y agoFor small businesses cash also allows for easier tax evasion
- merrywhether 2y ago> Sniff-test-wise… Penny-wise, pound-foolish isn’t a saying because it’s a total rarity. Plenty of people follow “common” practices that seem positive but are actually negative. Cash is much easier to steal from your employer, let alone miscount, misplace, or even accidentally destroy. You’ll see most if not all of these outcomes occur if you work a service/retail job.