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I've seen those gas stations. Those are not normal gas stations. They are usually run by shady people that bait people into coming to their station by offering really chap gas until you pull in and you see that rate is only if you pay cash. However, most intelligent people have credit cards that reward them far more than that in cash back or rewards.
Most people are wise and have a reward card. If you pay off your balance each month, there is no penalty to using a credit card and you get rewards each time you spend.
I agree with a few quibbles. For one the credit card penalty (I refuse to call it cash discount) in my area is about $0.10 but some stations don't have one and some it is a bit less. Most rewards programs pay 1% on purchases, with a quarter or two of the year giving a rotating 5% on gas. Costco pays 4% on gas and American Express Open pays 3% on gas. If gas is around $2 per gallon 3% - 5% swallows up the credit card penalty. I wouldn't call credit card penalties shady, at least in my area. Stations have to post the cash and credit card price with equal prominence though about 5% of stations don't do that.
[quote=azriverfan.;45463559]For example, if you spend a 100K in a year on your Southwest Airlines card, you get a free companion pass. So I put my business expenses on that and essentially my wife gets to fly free with me. Why on earth would I pay cash for something when there are rewards like this? [/qupte]I prefer my rewards in cash rebates. That is unless the tickets you get are easaily obtainable and for otherwise expensive flights. I used one in 2000 for a flight from NYC to Greenville, NC which would have cost around $500. Many flights though are far less expensive since they are to bigger markets.
Quote:
Originally Posted by azriverfan.
This is why cash is becoming obsolete. Everyone is trying to max out their reward points. Now things that were previously could not be paid with credit cards are now available to be paid with CC. The only people who I know that still value cash are the elderly due to their ignorance and irrational fear of credit cards.....oh yeah and mobsters too for obvious reasons
Cash is still good for petty transactions.
Quote:
Originally Posted by azriverfan.
It is for all the reasons you stated that our practice stopped accepting cash and we saw no loss of patients. We have not had one complaint about it because nearly everyone has a credit card these days.
Probably is a good idea, particularly if insurance is cheaper without accepting cash.
There is another problem. A lot of tills come up short for the day, especially if the sales are small and lots of them. Some is because the clerks are hitting the tills when more than one use the till it is impossible to find out who is hitting the till. And a lot of clerks, give out too much change. A few short tills, and the profits for the day are gone.
In places like an ice cream store, the clerks are not the ones that can do numbers in their head, and always be right. By going to no cash, this problem goes away.
Why hasn't a place like McDonalds switched over to "no cash"?
Are you telling me that ice cream stores are hiring employees more ignorant than McDonalds ?
Why hasn't a place like McDonalds switched over to "no cash"?
Are you telling me that ice cream stores are hiring employees more ignorant than McDonalds ?
Yes, they are. Many of them run on random high school girls being paid sub-minimum wage under the table, usually with no management present. Of course, this isn't the case for year-round ice cream shops, just the seasonal ice cream 'stands'.
I've seen those gas stations. Those are not normal gas stations. They are usually run by shady people that bait people into coming to their station by offering really chap gas until you pull in and you see that rate is only if you pay cash. However, most intelligent people have credit cards that reward them far more than that in cash back or rewards.
Most people are wise and have a reward card. If you pay off your balance each month, there is no penalty to using a credit card and you get rewards each time you spend. For example, if you spend a 100K in a year on your Southwest Airlines card, you get a free companion pass. So I put my business expenses on that and essentially my wife gets to fly free with me. Why on earth would I pay cash for something when there are rewards like this?
This is why cash is becoming obsolete. Everyone is trying to max out their reward points. Now things that were previously could not be paid with credit cards are now available to be paid with CC. The only people who I know that still value cash are the elderly due to their ignorance and irrational fear of credit cards.....oh yeah and mobsters too for obvious reasons
It is for all the reasons you stated that our practice stopped accepting cash and we saw no loss of patients. We have not had one complaint about it because nearly everyone has a credit card these days.
I agree that cash acceptance requires more effort but it does not mean that CC is the answer for everyone. As a physician you know that insurance payments are fixed and every penny that you pay to the CC is not recouped from higher charges, unlike Walmart or Macy's. For a $30 copay the sum is not much but for a $2500 drug infused and added to deductible the 3-4 % is significant, especially with the ASP ( average selling price) model of payment where insurances pay the exact amount of purchase cost of the drug.
I run a similar business and we accept cash and checks but for credit cards we charge 3.5 % extra to cover our transaction costs. After the class action suit settlement, Visa and MasterCard allow it but not Amex. Hence we don't accept Amex. If a customer bounces a check once they have only cash or CC option the next time. Thus customers have a choice but can choose to pay for the rewards themselves if they want to use the card. Or they can save money and pay cash or check. About 20-30 % pay by CC, especially if the amount is under $150.
An ice cream store in my area doesn't take cash. The owner said everyone uses debit or credit cards and he's afraid that cash could be "counterfeit", so he doesn't take it. Has anyone else heard of this?
anyone not taking one form of payment over the other has something to hide imo.
anyone not taking one form of payment over the other has something to hide imo.
By taking CC only and not cash it is in fact the reverse; he has nowhere to hide since all transactions are recorded electronically. He cannot stash it away like cash
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