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> There are very few places in the US that up charge for credit card transactions I actually see it quite often here in the Twin Cities at small stores, bars,

> There are very few places in the US that up charge for credit card transactions I actually see it quite often here in the Twin Cities at small stores, bars, restaurants. A 1~3% discount for cash. > The merchant gets all except for a 2% fee when you don’t use cash. Cash handling also has cost - theft both from employees and outside actors - too. I've asked quite a few merchants that take both whether they have a preference for cash vs card. Most (~90%) say they don't care either way. The remainder all say they prefer cash. I've never had one reply they prefer a card to cash. Also, when making large (like four- or five-figure) transactions with people like home contractors, they all request payment via personal check, to avoid the card fees eating a huge chunk of the transaction. I also dislike the idea of all transactions being trackable/identifiable. I think there's value in being able to perform anonymous transactions.

scarface_74 2y ago
> I actually see it quite often here in the Twin Cities at small stores, bars, restaurants. A 1~3% discount for cash. For reference, I have a card that gives me 3 points back for all restaurants and another card that gives me 2 points back for all other purchases. Doing the simplest thing possible and transferring those points to Delta for flights nets me 1.3% for each point meaning I will at least get 2.6% back on general purchases or almost 4% back worse case on restaurants. If they have to accept cash or credit cards, yes they will prefer cash. But there are reasons that some places don’t accept cash at all. It’s because of employee theft. But it’s harder to steal cash at restaurants and bars because everyone gets receipts. The usual theft from bars come from bartenders pouring more expensive liquors and charging for cheaper liquor and then accepting larger tips.
- marxisttemp 2y ago
  [flagged]
  - scarface_74 2y ago
    https://www.nerdwallet.com/article/credit-cards/credit-cards-make-you-spend-more https://www.nerdwallet.com/article/credit-cards/credit-cards... People spend more money and tip higher when they use credit cards than cash….
    - inetknght 2y ago
      > People spend more money and tip higher when they use credit cards than cash…. And you think that's a good thing?
      - scarface_74 2y ago
        I’m saying it doesn’t “hurt” the merchant
        inetknght 2y ago
        Indeed? I'm saying it likely does hurt the customer and in ways that the customer often doesn't realize. That doesn't make it bad per se, but it would be great if more people would realize and address the risks involved.
        scarface_74 2y ago
        > Those credit card perks are directly subsidized by the handling fees they charge your local businesses The “local business” more than makes up for credit card fees via increased spending. They know their margins and the minimum amount needed to make a credit card transaction worthwhile. That’s why many have minimum transaction amount to use a credit card.
        inetknght 2y ago
        > The “local business” more than makes up for credit card fees via increased spending. Sure thing bud. Keep cherry-picking the business side of things.
- coldpie 2y ago
  Those points don't come from nowhere, they come from the business you're buying from. For local businesses, I'd rather I keep 1% and the business keeps 2%, than Visa takes 3% from the business and gives me 1.5% back.
  - scarface_74 2y ago
    And people spend more when using credit cards than paying cash… https://www.nerdwallet.com/article/credit-cards/credit-cards-make-you-spend-more https://www.nerdwallet.com/article/credit-cards/credit-cards...
    - coldpie 2y ago
      I'm not really sure what you're trying to do in this thread. You asked why people like to use cash, and we're answering your question. You don't have to agree with us, it's OK for people to have different opinions about stuff.
      - scarface_74 2y ago
        People are concerned with it hurting local businesses. > they come from the business you're buying from. For local businesses Which is not true. And some of the reasons - like security and losing money - is tin foil hat territory.
        coldpie 2y ago
        > Which is not true. Oh. Where does it come from then?
        scarface_74 2y ago
        Retailers don’t “lose money” by accepting credit cards because on average consumers spend more when they use credit cards than they do when using cash.
- krunck 2y ago
  People get benefits back from their cards because of the transaction fees. Thats where the money comes from, not from the bank accounts of Visa and Mastercard's CEOs. Merchants are prevented by their contract from charging the transaction fee to the customer using the card. Therefore all customers pay the fees though increased merchant prices, even those using cash. I resent paying for peoples credit card "benefits" - actually they're payoffs - every time I use cash.
  - scarface_74 2y ago
    > Merchants are prevented by their contract from charging the transaction fee to the customer using the card. Therefore all customers pay the fees though increased merchant prices, even those using cash. This hasn’t been true for over a decade https://usa.visa.com/dam/VCOM/download/merchants/surcharging-faq-by-merchants.pdf https://usa.visa.com/dam/VCOM/download/merchants/surcharging... > Can I add a surcharge to card transactions? > As a result of a legal settlement to resolve claims brought by a group of U.S. merchants, merchants in the U.S. and U.S. territories may add a surcharge to certain credit card transactions, starting January 27, 2013. Merchants who choose to surcharge must follow > I resent paying for peoples credit card "benefits" - actually they're payoffs - every time I use cash. You really think retailers would reduce their prices by the amount of credit card fees if they didn’t pay them?
    - bigstrat2003 2y ago
      > You really think retailers would reduce their prices by the amount of credit card fees if they didn’t pay them? What kind of question is that? You were literally given an example, in this thread, about how some retailers do just that.
      - scarface_74 2y ago
        In aggregate, if all credit card fees were eliminated tomorrow, would all prices get 2% cheaper?

scarface_74 2y ago

> I actually see it quite often here in the Twin Cities at small stores, bars, restaurants. A 1~3% discount for cash. For reference, I have a card that gives me 3 points back for all restaurants and another card that gives me 2 points back for all other purchases. Doing the simplest thing possible and transferring those points to Delta for flights nets me 1.3% for each point meaning I will at least get 2.6% back on general purchases or almost 4% back worse case on restaurants. If they have to accept cash or credit cards, yes they will prefer cash. But there are reasons that some places don’t accept cash at all. It’s because of employee theft. But it’s harder to steal cash at restaurants and bars because everyone gets receipts. The usual theft from bars come from bartenders pouring more expensive liquors and charging for cheaper liquor and then accepting larger tips.

marxisttemp 2y ago
[flagged]
- scarface_74 2y ago
  https://www.nerdwallet.com/article/credit-cards/credit-cards-make-you-spend-more https://www.nerdwallet.com/article/credit-cards/credit-cards... People spend more money and tip higher when they use credit cards than cash….
  - inetknght 2y ago
    > People spend more money and tip higher when they use credit cards than cash…. And you think that's a good thing?
    - scarface_74 2y ago
      I’m saying it doesn’t “hurt” the merchant
      - inetknght 2y ago
        Indeed? I'm saying it likely does hurt the customer and in ways that the customer often doesn't realize. That doesn't make it bad per se, but it would be great if more people would realize and address the risks involved.
        scarface_74 2y ago
        > Those credit card perks are directly subsidized by the handling fees they charge your local businesses The “local business” more than makes up for credit card fees via increased spending. They know their margins and the minimum amount needed to make a credit card transaction worthwhile. That’s why many have minimum transaction amount to use a credit card.
        inetknght 2y ago
        > The “local business” more than makes up for credit card fees via increased spending. Sure thing bud. Keep cherry-picking the business side of things.
coldpie 2y ago
Those points don't come from nowhere, they come from the business you're buying from. For local businesses, I'd rather I keep 1% and the business keeps 2%, than Visa takes 3% from the business and gives me 1.5% back.
- scarface_74 2y ago
  And people spend more when using credit cards than paying cash… https://www.nerdwallet.com/article/credit-cards/credit-cards-make-you-spend-more https://www.nerdwallet.com/article/credit-cards/credit-cards...
  - coldpie 2y ago
    I'm not really sure what you're trying to do in this thread. You asked why people like to use cash, and we're answering your question. You don't have to agree with us, it's OK for people to have different opinions about stuff.
    - scarface_74 2y ago
      People are concerned with it hurting local businesses. > they come from the business you're buying from. For local businesses Which is not true. And some of the reasons - like security and losing money - is tin foil hat territory.
      - coldpie 2y ago
        > Which is not true. Oh. Where does it come from then?
        scarface_74 2y ago
        Retailers don’t “lose money” by accepting credit cards because on average consumers spend more when they use credit cards than they do when using cash.
krunck 2y ago
People get benefits back from their cards because of the transaction fees. Thats where the money comes from, not from the bank accounts of Visa and Mastercard's CEOs. Merchants are prevented by their contract from charging the transaction fee to the customer using the card. Therefore all customers pay the fees though increased merchant prices, even those using cash. I resent paying for peoples credit card "benefits" - actually they're payoffs - every time I use cash.
- scarface_74 2y ago
  > Merchants are prevented by their contract from charging the transaction fee to the customer using the card. Therefore all customers pay the fees though increased merchant prices, even those using cash. This hasn’t been true for over a decade https://usa.visa.com/dam/VCOM/download/merchants/surcharging-faq-by-merchants.pdf https://usa.visa.com/dam/VCOM/download/merchants/surcharging... > Can I add a surcharge to card transactions? > As a result of a legal settlement to resolve claims brought by a group of U.S. merchants, merchants in the U.S. and U.S. territories may add a surcharge to certain credit card transactions, starting January 27, 2013. Merchants who choose to surcharge must follow > I resent paying for peoples credit card "benefits" - actually they're payoffs - every time I use cash. You really think retailers would reduce their prices by the amount of credit card fees if they didn’t pay them?
  - bigstrat2003 2y ago
    > You really think retailers would reduce their prices by the amount of credit card fees if they didn’t pay them? What kind of question is that? You were literally given an example, in this thread, about how some retailers do just that.
    - scarface_74 2y ago
      In aggregate, if all credit card fees were eliminated tomorrow, would all prices get 2% cheaper?