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I stopped by a place called Raffetto's yesterday and I was shocked that they only accepted cash. And a lot of "pizza by the pie" restaurants only accept cash.
Why is this?
Manhattan is a big tourist attraction so wouldn't this be an inconvenience?
I think a lot of companies get charged a 2% fee for every card card purchase. That's a lot of money of time. Plus I'm sure a lot of companies like to pay under the table. You need cash for that, no paper trail.
Because they're smart. They keep the profits, instead of giving a cut to the credit card. That means in turn that they can keep their prices a little lower.
Personally I love supporting cash-only restaurants.
Swipe fees on some credit or charge cards not to mention other associated costs can for some businesses not make it worth to accept. Even now that federal law allows merchants to avoid rules set up by MasterCard, Visa, Amex, etc... about minimum charges for use, it still often cannot work.
If your average sale is $5.00 raising that to say $20 for a credit card purchase is just not smart.
The other reasons of course have already been mentioned; due to new federal laws credit/charge card companies including the PayPal sort are legally required to report accounts with activity above a certain amount. This in turn as caused many merchant accounts to require far more detailed information about banks and so forth. Many businesses simply feel the hassle just isn't worth it in terms of sales generated.
There is no such thing as a free lunch. Fees charged for having a merchant account are worked into the price of goods/services. If a business cannot recoup those fees it will drop taking credit/charge cards. This explains those discounts for paying with cash gas stations.
I stopped by a place called Raffetto's yesterday and I was shocked that they only accepted cash. And a lot of "pizza by the pie" restaurants only accept cash.
Why is this?
Manhattan is a big tourist attraction so wouldn't this be an inconvenience?
Yes, it is a big inconvenience. That is another example of how NYC is stuck with time while the rest of the country keeps moving on to newer and often better means of living.
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