Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I posed a question regarding debit card usage recently and was assured some places now refuse cash and credit but no one provided any examples (in the US) of what these might be.
Has anyone run into this?
I'm assuming you meant refusing one or the other - but not both? As that makes it a bit hard to pay (unless you are actually talking about debit only?).
There are a number of local restaurants that only accept cash. And aside from non-brick/mortar places (Uber, in-flights), I am starting to see some establishment go the non-cash route. Most of these places are newer businesses and feel the efficiency is more cost effective in the long run vs. any savings from not paying interchange fees from collecting cash.
Quote:
Originally Posted by HokieFan
My parents own a small business, and they've told me that it's more costly to process credit cards. And credit cards with rewards take a even higher percentage. They ask their customers to pay in cash or debit but of course, will not turn down a sale if the customer prefers to use credit.
-snip -
Quote:
Originally Posted by Northrick
You're the second one to say this, so I guess I have that backwards. I don't run a business and don't have first hand knowledge. Just something I read.
Still, anyplace I've gone that accepts cards, accepts either type.
Interchange fees is a complicated topic. I worked for a bank and was even very involved in their conversion to chip cards (so I had a LOT of education on how credit/debit cards worked) - and I still don't completely understand it. Perhaps someone that works in card services for a bank/CU can explain better.
Both credit cards and debit cards have interchange fees. And the debit side is more complicated as it can be online or offline (PIN or Signature). In the end, I believe what costs more can differ between businesses. The debit fees are tiered and can differ based on other factors (industry, product purchased, etc.).
And everyone has their perspective. A bank may want you to use PIN based transactions for small purchases, but will make more on signature based for larger items. And the inverse is true for the merchant. Albeit this has more to do with fraud loss than transaction costs.
Collecting payments is a business process that is going to incur a cost to a merchant regardless of how the payment is made. Interchange fees are simply more visible as it appears on the balance sheet. Whereas the cost to managing cash is likely buried under salaries, wasted time, or maybe even fraud/losses.
I only accept checks with my contract services business. Other forms of payment represent either a logistical nightmare (cash) or comparatively unnecessary risk (credit cards) in my experience.
I'm researching a trip to Amsterdam later this year, and the Dutch are apparently doing their best to go to an all card economy. One of the reasons given by a bakery for being card-only was that it was more sanitary for the shop- there are all kinds of nasty things that can be found on paper money, and a credit or debit card into a card reader means that the store worker doesn't have to touch anything the customer gives them- they can just pass the bagged pastries over on the counter and not have to change gloves or wash their hands before touching food again.
I'm researching a trip to Amsterdam later this year, and the Dutch are apparently doing their best to go to an all card economy. One of the reasons given by a bakery for being card-only was that it was more sanitary for the shop- there are all kinds of nasty things that can be found on paper money, and a credit or debit card into a card reader means that the store worker doesn't have to touch anything the customer gives them- they can just pass the bagged pastries over on the counter and not have to change gloves or wash their hands before touching food again.
I don't think that it's a good idea. For a small item like a small bun, will they process my American Express Card while refusing my 60 cents cash? As far as hygiene is concerned, they will still need to punch some buttons of card reader /machine and tear off the paper receipt
I'm assuming you meant refusing one or the other - but not both? As that makes it a bit hard to pay (unless you are actually talking about debit only?).
Actually I meant both as some folks were so vehemently for debit cards in another thread I wondered if I was going to run into a place that would not take my cash/credit as needed.
I think there are some online stores that only accept crypto. I know some sell prescription drugs. Reddit has a sub forum devoted to this and would be a good source if you are looking for examples
I posed a question regarding debit card usage recently and was assured some places now refuse cash and credit but no one provided any examples (in the US) of what these might be.
Has anyone run into this?
How do you mean exactly? If you mean specifically cash, like dollar bills, or credit cards, my business doesn't accept either. We ONLY accept checks. We'll accept a wire transfer if you pay the fee, or whatever other bank transfer method there is. 99% of the time it's just checks. We are a business-to-business company only and it has rarely been an issue for us. Every other company we're dealing with processes checks to vendors, though a few have asked about credit cards. I get that credit cards are easier for them, but it's a hassle for us and there's simply no way we couldn't add the 2% or whatever onto their bill. Our margins aren't that crazy and I've fought hard to get the margins where they are, so losing 2% would be back to 2013 margins for me.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
