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There is a reason behind this. Tesco deems it worthwhile to take a (smaller) hit to keep your business, whereas your local pub believes you aren't going to swit
by polshaw 14y ago
There is a reason behind this. Tesco deems it worthwhile to take a (smaller) hit to keep your business, whereas your local pub believes you aren't going to switch pubs, and just wants to encourage you to use cash so that they keep as much of the price of your drinks as possible (i say this because £1 in 10 is a 'penalty' more than covering costs.. which should be closer to 30p).
IE, your choice of supermarket is more elastic than your choice of pub.
Bitcoin seems to be the closest thing we have to disrupting this, but the chicken and egg problem isn't going anywhere.
- tonfa 14y agoWhen I was in France I would sometimes pay in a bakery with my debit card for a couple of euros. Actually, I believe handling cash costs them money too and card processing fees might be less than what cash costs them.
- dagw 14y agoI've heard several small shop owners say they prefer debit cards to cash since they claim it reduces the risk of robbery. The more people pay by card, the less cash there is in the till and thus the less reason to try to rob a place.
- pbhjpbhj 14y agoProcessing card transactions takes longer and reduces the serve rate of drinks. This is IMO probably a larger factor than the processing cost - cash has a processing cost too (staff time, security, fraud, bank charges) and it seems pretty close to the card processing cost.