[TRDRVR]

A huge aspect people ignore is how expensive it is to handle cash. From storage, administration, transportation, loss, etc. it's usually a little more expensive to take cash vs. card.

This is why your grocery store partners with an ATM network to let you take out extra cash at the POS. As long as you're paying the fee, they'll do whatever they can to trade you cash for a digital deposit into their bank account.

[aeyes]

I worked at several small businesses and we always preferred cash, we even accepted multiple currencies. The handling was no problem but I admit that it must be more difficult for larger businesses.

Card payments made the price of the service more expensive for all customers because we weren't allowed to have a card payment fee.

[ses1984]

Small businesses put in sweat equity to handle cash payments, like the owner going to the bank to make a deposit. If they had to pay an hourly employee to do that, it might even out with credit card processing fees. Also small businesses can fudge numbers with cash payments in a way that’s a lot harder to do when some other company keeps a record of all of your cc transactions.

[dhosek]

Back when I was publishing a magazine in the 90s, I preferred credit card payments over checks in the mail because while there was the 3% vig for the merchant account on the credit cards, taking piles of checks to the bank was a pain and there was always the risk of a check bouncing (yes, there was also the chance of a charge being reversed, but in the whole time I did this, that only happened once—selling subscriptions for a print product is a good hedge against fraudulent use of cards and the one time I got stung it was someone who bought a big pile of back issues and had them shipped to Hungary). Add in that credit card orders could be handled by phone or internet while checks had to come in the mail and it was a clear win. And that’s ignoring the multiple studies that show that credit card purchasers at brick and mortar retail tend to spend more money than cash purchasers.

[Kranar]

I also worked at small businesses and they absolutely preferred cash but not because it was easy to handle but because, you know... taxes, wink wink.

[TRDRVR]

>we even accepted multiple currencies

You accepted multiple currencies without taking a spread on Forex? How did you convert it for free? Not even actual forex businesses can do that...

[ransom1538]

"we weren't allowed to have a card payment fee. "

BTW. Good luck catching that. In SF, that is how many businesses work. You want to use a card? Ok, one extra dollar. Nothing enrages visa more, but, the merchant should have this right.

[whartung]

I was just thinking about the other day how much cash used to flow through grocery stores.

The routine was to show up at the store with your paycheck, cash it, pay for your groceries, and keep the change.

Our store used to have the safe up front next to the bags of charcoal.

[reaperducer]

This is why your grocery store partners with an ATM network to let you take out extra cash at the POS. As long as you're paying the fee, they'll do whatever they can to trade you cash for a digital deposit into their bank account.

This is not universal.

Where I currently live, and where I lived five years ago, supermarkets charge a fee (50¢ here, 25¢ where I used to live) to take out cash at the POS, because the card transaction cost more than handling cash.

There was a lot of "Are you sure?" prompts on the screen because the supermarkets (both big chains) didn't want the burden of the plastic transaction.

I've seen it stated a lot in technology forums that "cash is more expensive for merchants than cards," but I've never seen that spelled out from any source other than the card companies.

Every low-margin business I patronize, from the garden centers, to the convenience stores, to the antique stores all either offer a discount for cash, or charge a fee to use plastic.

Just last week, a woman who's run an antiques store for 35 years told me that card fees were going to put her out of business, and she practically begged me to go down the street to my bank to get cash for my purchase.

[gnopgnip]

A lot of businesses have a few percent cash discount to offset credit card costs, so they make the same amount either way. An antique store that would go out of business unless you pay in cash is either because they aren't paying consigners honestly, or they aren't paying taxes.

[op00to]

Small businesses offer a discount for cash because they are underreporting their sales to pay less tax.

[Scoundreller]

Meanwhile eBay forces payments by debit/credit card/Paypal, because they have arrangements with a (formerly owned) processor, even though I, as a seller, would be happy to accept cash/drafts/cheques/COD/whatever to keep that ~3%.

[watwut]

You do not need credit card for that. Debit card is enough.

[resource_waste]

My wife takes big payments at her company.

I'm pretty sure lots of people are putting these on credit and... might not ever pay it back.

She literally couldnt get cash from these people.

(US medical btw)

[mateo1]

I agree, which is why merchants should be allowed to charge different prices for different card operators and for cash.