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The better question, why aren't stores charging CC companies so that a CC company can be used in the store?
Years ago, CC companies begged stores to accept their CC. Stores had the leverage. In many ways, they still do. The CC companies just tell stores that if they don't pay the percentage, then they can't use the card and they'd lose customers. This is true to some degree. But I think lots of companies have enough leverage for it to be free. Lets say Walmart decides to not accept X credit card anymore. Walmart is tired of paying the percentage. Will that stop customers from going to Walmart? In many cases no.
time change
stores don't have the leverage any more
they did when most of the general public didn't use cards
I pay cash cause I hate people who are always taking forever to find their cards, their card won't work, etc, etc.
Cash going faster than CC's happens maybe 5% of the time at most. It's almost always faster for someone to hand a card and swipe it. I dread when I'm in line at Subway, etc. and I see a person ahead of me start counting out bills and coins.
Quote:
I live for the day when some punk tries to take my money. One less punk for everyone else to worry about. Lawyers don't take lawsuits against people whose assets they can't find. I'll take my chances with the legal system, as long as I'm standing on the (dead) punk's wrist, his gun lying there beside him.
The least expensive gas stations that I am familiar with, do not give discounts for cash. The vast majority of their customers pay at the pump with credit/debit cards, and that is what they prefer. Customers that pay cash, must go into the store and put up a cash deposit and the clerk has to take their money, turn on the money and after most get gas, they have to give them some money back. If it is a busy station, it costs them more in wages and trouble, than the card discount.
We have one here in our town at a freeway entrance, that has a dozen pump lanes with cars on both sides of the lanes, with two cars per lane, and you often have to wait to get to a pump. In addition they have about 10 truck lanes, and they are always full it seems. If everyone had to go into the store to pay, it would take several times as many clerks they now have. They want everyone to use credit/debit/speedy pass cards, not cash. They are open 24 hours a day. They have a convenience store and a deli to help the truckers, along with showers for their use. They are a chain, and do a tremendous amount of business.
The reason gas stations demand a cash deposit before they allow you to pump if you are a cash customer, is because if they did not several people a day would come in and fill their tanks, and run off without paying.
Using them as an example, they prefer no one ever pay cash, as it takes more clerks to handle payments, and would cost more for labor than it does for cards.
Retail stores also know, that people spend more using cards, than they would using only cash. The additional business more than makes up for the cost to accept cards. Using cards, people shop all week long, not just right after pay day.
The least expensive gas stations that I am familiar with, do not give discounts for cash. The vast majority of their customers pay at the pump with credit/debit cards, and that is what they prefer. Customers that pay cash, must go into the store and put up a cash deposit and the clerk has to take their money, turn on the money and after most get gas, they have to give them some money back. If it is a busy station, it costs them more in wages and trouble, than the card discount.
We have one here in our town at a freeway entrance, that has a dozen pump lanes with cars on both sides of the lanes, with two cars per lane, and you often have to wait to get to a pump. In addition they have about 10 truck lanes, and they are always full it seems. If everyone had to go into the store to pay, it would take several times as many clerks they now have. They want everyone to use credit/debit/speedy pass cards, not cash. They are open 24 hours a day. They have a convenience store and a deli to help the truckers, along with showers for their use. They are a chain, and do a tremendous amount of business.
The reason gas stations demand a cash deposit before they allow you to pump if you are a cash customer, is because if they did not several people a day would come in and fill their tanks, and run off without paying.
Using them as an example, they prefer no one ever pay cash, as it takes more clerks to handle payments, and would cost more for labor than it does for cards.
Retail stores also know, that people spend more using cards, than they would using only cash. The additional business more than makes up for the cost to accept cards. Using cards, people shop all week long, not just right after pay day.
If I ever encounter a gas station like this, my cash deposit will be in ones, then I will pump $5 and retrieve my change back.
May be because money is our only way of survival so we alway working to make as much money as we can. Some other countries may also lived of the land so they dont need to work that much to survive. Good question..
[quote=RecentGrad1;36774561]Of coruse it's penalizing them for using a credit/debit card! It costs them more to process it! Rather than keeping the additional cash profits for themselves, they're passing them on to you. What do you have to lose?
When I bought gas (before I went completely carless) I always bought at a gas station that took cash only (Arco). Their prices were the absolute cheapest in the area. The cash-only definitely helped them maintain their price structure (though I'm sure their economies of scale also contribute).
Banks have used electronic transfers for decades because its in end less costly .its like the difference between a e-mail or fax compared to a letter. Letters use to be cheap to send but not now days with cost of labor.Any merchant now days love the instant transfers and increased sales with less labor cost. That is is why station give discounts for using their card; its cheaper so they pass on some of handling charges.
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