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>The shopkeeps who are also the owners are so appreciative as it's essentially a 5-7% "tip". Because tax evasion? Otherwise credit card interchange rates are n
by gruez 1y ago
>The shopkeeps who are also the owners are so appreciative as it's essentially a 5-7% "tip".
Because tax evasion? Otherwise credit card interchange rates are nowhere that high, typically 3%.
- manwe150 1y agoSquare is 2.6% + 15¢, so to get 5-7%, you could be doing most transactions under $5. That seems to require fairly high sales volume to make any decent wage though, so there is an added transaction cost for them to “keep good change” instead of serving more customers
- basch 1y agoCash costs as much or more to handle. Potentially ranging from 4.7% to over 15%, costs include labor for counting change, closing drawers, preparing deposits, security expenses like armored transport, bank fees for cash services, insuring against significant risks of theft and fraud.
- IAmBroom 1y agoTrue, but it's a hidden cost, so less "painful" to small merchants. In the end: fairly unimportant... except for that perceived "cost".
- imajoredinecon 1y agoIf it's 3% + $0.30, that can easily be 5-7% for smaller transactions, which are the ones where I most often get asked to pay cash.