Notice more and more restaurants taking cash only

[Smiling JOe]

...
SJ, I think it is less these days that people cannot afford to pay cash, but rather that they don't want to take a bunch of cash on vacation with them. ...

As I said, if it isn't a "can't afford it thing," it is a convenience thing, and for those people's convenience, an ATM machine is located in the room behind the bar. Think about it this way, by not having to increase prices across the board, to cover the cost of the credit cards, everyone benefits from lower prices, and for those who use the ATM in the back room, the fees are probably no more than the savings on menu prices by not having to upcharge for cc fees.

All of this cash/check only thing isn't so new. It has been around for years. Only in the last ten years, did McDonalds begin installing cc machines at all of their locations. Most fast food restaurants still rely on cash as their main focus of sales, and as a whole for an international franchise, I'm sure they cut out millions of dollars of "waste."

 

[SneakyPete]

I must admit I simply like the convenience of a credit card. I don't carry much cash and so I'd be hard pressed to come up with the cash for a family meal at 30A prices (even a casual family meal for 4 can easily set you back $50 w/ tip). With a credit card, I can run over my expenses at the end of the month and categorize them when I pay bills and balance my checkbook. Of course I COULD do that with cash, but that would mean keeping a written tab of everything I spend whereas the credit card does that for me automatically. We have only one credit card and keep the balance at zero or thereabouts so I'd say we're in the zone of "If you can't afford it..."

At our business, we simply factor the CC percentage as a cost of doing business. We do not specifically raise our prices to cover the fee, although of course any increased cost is considered when we set our prices.

Maybe a better way to encourage cash purchases is to hand out some minor discount coupons or "extras" (free upgrade to a large fry? 50 cents off a side item?) to those who pay cash. Word would likely get around, especially with regular tourists and locals.

 

[Smiling JOe]

...

At our business, we simply factor the CC percentage as a cost of doing business. We do not specifically raise our prices to cover the fee, although of course any increased cost is considered when we set our prices. ....

This sounds contradictory. Sounds like you ARE covering the cost when setting your prices, making all buyers pay for CC usage, though you say that you don't raise your prices to cover the fee. Maybe you can elaborate on that. In my mind, you either up the prices to cover the additional costs, or you take it off the business profits.

 

[wrobert]

My Visa/MC/Discover fees went from about 2% last year to as high as 4.8% recently and it is killing us on the CC sales. I don't want to go all cash as this makes it difficult for some patrons, but I am considering charging a $.50 to $1.00 fee to cover my added cost, if a customer chooses to use a CC. Do you think customers will gripe about this? Our small restaurant can't keep eating the cost. Opinions wanted?

Shea at Flip Flops.

First I would start looking for another processor with those fees being so high. That is a bit much. And you also need to read your agreement with the CC company. Many will allow you to discount for cash, but will not allow you to surcharge for CC.

As for other services I use Intuit, which is considered to be one of the more expensive services and they only charge 1.64 % for card swiped transactions. I just like the convenience of the way they interact with Quickbooks.

 

[scooterbug44]

I don't mind paying with cash or check when there is a no-fee ATM on the premises. It does make it more difficult to divvy up group checks, and I do tend think that the business or server is shorting the tax man, but I figure karma takes care of that in the long run.

Credit card companies are screwing us all over, so if a local business wants to be cash/check only and have an ATM to avoid their evil fees, that's just fine with me.

If it's a small purchase or a home business, I expect to pay cash - that's why you can get "cash-back" w/ no fees when you get your groceries etc.

 

[Lynnie]

I naively assumed if I was using the "debit" option, then the money was being removed directly from my account, like an electronic check, with no CC fees. I'm one of those people who rarely has cash on hand, and frequently use my debit card. No more - cash or check only at local businesses from now on for me...

I don't buy the BS about tax scams; like Jodi says, all of the restaurants I go to use an itemized POS system, and give me a register receipt, no matter how I pay. If they don't, request one. I don't believe they are fudging the receipts to scam the IRS; that is more fear-based conjecture to justify a bad business practice. We've all been lulled by the empty promise of credit for too long - it is an evil system. My daddy was right all along - if you can't pay for it with cash, right now, today, don't buy it, you can't afford it.

Debit card fees are not as high as credit cards, but there is still a fee. Most places at the beach will take checks - at least they've always taken mine (local address, too).

I for one have been using my CC for every purchase that I can to rack up cash rewards (and paying off the balance in full each month of course)--and the paying of said rewards are probably what is being passed along to the retailers in the form of higher fees. I also like to use my CC to track my spending and for consumer protection from shifty retailers.

The CC companies are providing a service to the retailers for this fee--more customer traffic; less chance of bounced checks; not having to keep lots of cash on hand; reports that help in accounting purposes for sales and taxes.

I, personally, don't like carrying a bunch of cash around--usually no more than $100...ditto carrying my checkbook (ugh!). I'll pay with cash for purchases that are only a few bucks (say, under $10); but unless a place that requires payment in cash provides a truly one-of-a-kind product or service, I'll usually pass them up for a business that accepts my credit card.

And if I'm in line to pay, and I see the retailer doing the "figuring out tax on a calculator, and ringing up 00 on the register trick," I'll pull out my CC, even if it is only for a stick of gum--and make a point to report them to the IRS.

As the Great Recession deepens, and more credit cards get downgraded or yanked, there's a possibility that many will have to revert to the "all cash" system of purchasing goods--but it pretty much stands to reason that these people will not be among the majority of folks who will be patronizing businesses that sell $20 entrees, $4 cupcakes or $15 plum-blossom-scented candles.

.

I can't get a *&^%#$#@$%^&*(() free seat on Delta to save my soul with medallion level status and racking up points on AMEX! Grumble, grumble! Going cash~~~~~~~~have started carrying my checkbook with me again!

And, Y'all, Lay-A-Way is making a comeback!!

 

[Smiling JOe]

Those "cash back" cards are crapola, and the only money you are getting back is that which you and everyone else paid in the way of higher purchase prices as retailers have to increase prices to cover the costs of the cc services.

 

[Coaster11]

I didn't know about the new Visa policy. Sounds like a business would not be able to add on the fees to cover the added cost of the retailer.

Here is a thought: maybe we shouldn't be buying food and drinks if we can't afford to buy it with cash. I know the Red Bar has an ATM in the back, and even though I've been going there for 7 years on a regular basis, and know most of the servers, they still remind me every time they present the menu, that they accept cash or checks only and have an ATM machine in the back if needed. If you don't have cash, it is available in the back room if you insert your credit card. BTW, that machine may run out of cash, but the Red Bar has the controls on it, and will fill it each time it runs out, so no one is without cash availability, unless the power is out or if the machine breaks, but I've never heard of it breaking.

I for one actually use my check card for just about everything... I have the PIN disabled and do not use ATMs. I usually try carry to a little more than 100 dollars with me, but I like to entertain and this is not always enough. When dining by myself, I prefer to use my card as well as dining is not an emergency and I carry the cash in case I get in a bind. Yes, CCs are a convenience, but in this day and age restaurants as well as other businesses should be doing all that they can to make it more convenient for their customers...

Flip FLops,:
why don't you offer a 3- 5% discount for cash customers?? then it does not look like you are adding to the bill but giving a discount is always better... and, no, DON'T RAIS YOUR PRICES if you can help it.

 

[SneakyPete]

This sounds contradictory. Sounds like you ARE covering the cost when setting your prices, making all buyers pay for CC usage, though you say that you don't raise your prices to cover the fee. Maybe you can elaborate on that. In my mind, you either up the prices to cover the additional costs, or you take it off the business profits.

We not not SPECIFICALLY look at CC fees and say, "Oh well, we're going to raise our fees 3% because Visa and MC have raised their fees." We don't give discounts for cash, and we don't charge extra to customers who use their CC.

I mean that as EVERY cost in our business goes up, so do our prices. As we set fees for the coming year, we look at our rent costs, our insurance costs, our equipment costs, our payroll costs, our inventory costs, (and yes) our CC fee costs, and what our competitors are charging for a similar service -- that helps us set our prices for the coming year. CC costs are pretty inconsequential in the mix, actually. Our rent, insurance, and payroll are the driving force in price increases -- though we've tried to keep those increases to a minimum and cut costs in other, very creative, ways. Our business is thriving (even better than in 06, 07, and 08) so I guess we're doing something right.

 

[conched out]

It won't fly charging $10 for a burger and fries if you include cc charges. The cut off for a burger and fries is around $8.50-9.00 Max. Thats what shorties and red bar charges. I agree with the other posters and think much of the cash is about not paying taxes and that irks me.

I agree. Red Bar does big time "numbers". No need to be cash only but it works for them