Opinion: what do you think?

[goofyernmost]

Almost every Cash Only business doesn’t give a damn if people walk away. They’re doing quite fine without you.

That is not necessarily true. Credit card companies charge vendors when cards are used. All of them do. American Express Credit cards charge the highest rate, but they all cut significantly into the profit margin of small mom and pop stores. To avoid those charges business stay cash only. Then there are those that do not trust technology and do not want to deal with wifi, internets and the like. It's just a matter of time before they all will have to let all but minor amounts of cash be used if for no other reason that it is more difficult for big brother to make sure you aren't cooking the books.

 

[TheDad00]

hotel gm here. We don’t take cash. Never really an issue.

 

[GreatLakes]

Unless I have to use cash I don't and I don't use a debit card either. Everything gets put on the Credit Card and that is paid monthly so I don't pay interest but get my rewards and/or cash back. In fact at this point I rarely even use the credit card, I try to use my watch or phone as often as possible and I have all the relevant credit cards in my Google and Garmin wallets. My store cards, like Giant Eagle Fuel Perks, are in the Google wallet to so I don't even need to bring out that.

Unless you've done something wrong, like caused a financial loss to an FI or have terrible credit, there is no good reason not to have some card payment option even if it is a secured card with your FI.

 

[Julie's Haircut]

In fact...some cash businesses (more than you think) exist primarily for money laundering!

Or tax evasion. Exhibit A.



The owners of this popular Jersey Shore pizza shop were convicted of transferring millions of corporate cash funds into their personal accounts. All were under $10,000 to avoid scrutiny. The husband served about 15 months in federal prison and his wife received probation.

It was and remains a cash only business.

It was and remains the world's worst pizza.

I have no doubt whatsoever that they're still under reporting income.

https://www.inquirer.com/philly/new...nced-in-NJ-to-15-months-for-tax-evasion-.html

 

[Julie's Haircut]

Unlike some others here, I don't throw a hissy fit when a business only accepts cash.

And the thing about cash being dirty and germy. So what? You get more germs touching your i-phones or credit cards to pay.

And of course those come along who brag that they charge everything and pay it off monthly if not immediately.

And the ones who honestly can't remember the last time they handled cash are no doubt miserly tightwads who never tip a service worker like a hotel housekeeper.

 

[DLgal]

The company I used to work for went cashless for a while. They ended up making an exception that if the customer had exact change, a manager could approve the cash transaction. The whole reason was to eliminate the need for keeping a cash bank at each retail location to stock the registers each shift. They checked into it very thoroughly before moving forward, and it is legal to go cashless.

I personally don’t like going totally cashless, as I hate balancing my checking account with tons of small transactions. Based on the commercial where the developer of a new app that keeps track of all your spending comes right out and says he never balances his checking account or credit card statements, maybe I am in the minority for actually keeping track of my money and where it goes.

This is where using a credit card and paying it off every month works well. No need to balance a checking account several times every day. I balance my checking account once a month.

 

[Lilsia]

The reason a small business remains primarily cash based is because the owner doesn’t understand the expenses associated with accepting cash, is resistant to change and is ok with it costing more to accept cash, is a business for money laundering, or being primarily cash based makes it easier to fudge the books for tax dodging purposes.

Experts put the cost of accepting cash at 9.1% per transaction. Credit/Debit averages 3.5%.

The difference is that the 3.5% is easily seen by the retailer. The 9.1% is hidden.

What expenses are you talking about? The fact that the manager, who is probably on salary, has to go to the bank? I think this is dependent on the business. When you have a low average ring up, you will pay more in merchant fees. Tell me, what exactly are the costs of accepting cash? And who are these "experts", are they paid by the credit card companies? What you are saying doesn't even make sense. We are relying too much on technology. Any place that does not take cash, when your system goes down, and it will at some point, you have to close. If you take cash, you can easily stay open. https://www.reviewjournal.com/busin...stem-goes-down-during-wwe-summerslam-2424914/ I bet that cost them a bunch of money. If they took cash, they would have still been in business that day.

 

[DLgal]

In fact...some cash businesses (more than you think) exist primarily for money laundering!

This is precisely the reason why I immediately walk away from any business that says "cash only." It's shady, at best and I refuse to support a crime ring.

 

[DLgal]

What expenses are you talking about? The fact that the manager, who is probably on salary, has to go to the bank? I think this is dependent on the business. When you have a low average ring up, you will pay more in merchant fees. Tell me, what exactly are the costs of accepting cash? And who are these "experts", are they paid by the credit card companies? What you are saying doesn't even make sense. We are relying too much on technology. Any place that does not take cash, when your system goes down, and it will at some point, you have to close. If you take cash, you can easily stay open. https://www.reviewjournal.com/busin...stem-goes-down-during-wwe-summerslam-2424914/ I bet that cost them a bunch of money. If they took cash, they would have still been in business that day.

Let's see. First you need to spend money on a safe to keep your cash. You have to open and maintain a bank account at a local branch where you can deposit your cash. Business accounts are rarely free. You have to pay the gas to drive to and from the bank a few times a week. You have the hourly cost of the time it takes to count out the cash and balance registers every day. You could be doing other stuff in that time. You have to worry about always having change available, and if you run out, back to the bank you go. It adds up.

 

[fla4fun]

This is where using a credit card and paying it off every month works well. No need to balance a checking account several times every day. I balance my checking account once a month.

I suppose it depends on how many transactions we are talking about, because in essence you are just moving the pain of reconciliation from your checking account statement to your credit card statement. I am not saying I never use a credit card, but I pay for groceries, gas, and little incidentals with cash. I don’t overspend because when the cash is gone, it’s gone. So I have maybe five transactions in the checking account each month, and maybe one or two transactions on two credit cards (I use one card strictly for online and one strictly for in person), so it’s simple to reconcile everything. I hate math, so the simpler I can keep it for me, the better. I know others prefer the convenience of using debit or credit cards exclusively, but it’s just not for me.

 

[DLgal]

I suppose it depends on how many transactions we are talking about, because in essence you are just moving the pain of reconciliation from your checking account statement to your credit card statement. I am not saying I never use a credit card, but I pay for groceries, gas, and little incidentals with cash. I don’t overspend because when the cash is gone, it’s gone. So I have maybe five transactions in the checking account each month, and maybe one or two transactions on two credit cards (I use one card strictly for online and one strictly for in person), so it’s simple to reconcile everything. I hate math, so the simpler I can keep it for me, the better. I know others prefer the convenience of using debit or credit cards exclusively, but it’s just not for me.

Oh boy. We average 5 transactions a DAY. I don't reconcile anything on the credit card statement. I have it set up to send me a text for each transaction where the card is not present, so I know they are all legit. I simply pay the balances in full every month. It's always about the same amount. We put everything on the card: groceries, gas, drug store purchases, medical appointment co pays, amazon and other online shopping orders, and we have most utility bills ans subscriptions charged monthly as well. We only have a small handful of monthly expenses that come out of our checking account like rent, car payment, and insurance premiums.

 

[Mackenzie Click-Mickelson]

I suppose it depends on how many transactions we are talking about, because in essence you are just moving the pain of reconciliation from your checking account statement to your credit card statement. I am not saying I never use a credit card, but I pay for groceries, gas, and little incidentals with cash. I don’t overspend because when the cash is gone, it’s gone. So I have maybe five transactions in the checking account each month, and maybe one or two transactions on two credit cards (I use one card strictly for online and one strictly for in person), so it’s simple to reconcile everything. I hate math, so the simpler I can keep it for me, the better. I know others prefer the convenience of using debit or credit cards exclusively, but it’s just not for me.

If I used cash for groceries as a norm I would totally lose track of how much I'm spending but that's a me thing. Gas I used to pay in cash all the time when I was a teen but that's a hassle to say "put X on pump" and going into the station. Costco gas also doesn't do cash. There's nothing wrong with the way you're going about things but it's def. a minority especially these days.

 

[kdonnel]

What expenses are you talking about? The fact that the manager, who is probably on salary, has to go to the bank? I think this is dependent on the business. When you have a low average ring up, you will pay more in merchant fees. Tell me, what exactly are the costs of accepting cash? And who are these "experts", are they paid by the credit card companies? What you are saying doesn't even make sense. We are relying too much on technology. Any place that does not take cash, when your system goes down, and it will at some point, you have to close. If you take cash, you can easily stay open. https://www.reviewjournal.com/busin...stem-goes-down-during-wwe-summerslam-2424914/ I bet that cost them a bunch of money. If they took cash, they would have still been in business that day.

You do not have to believe it for it to be true.


https://www.plainscapital.com/blog/the-cost-of-accepting-cash/

https://www.bypassmobile.com/blog/ordering-point-of-sale/the-hidden-costs-of-cash-for-merchants/

https://www.cashdrawer.com/wp-conte...ost-of-cash-acceptance-what-can-merchants-do/

https://hbr.org/2014/06/the-hidden-costs-of-cash


Merchants far and wide mistakenly believe that accepting cash is the cheapest option. This erroneous belief is mostly due to the fact that, though credit and debit fees are obvious, the costs associated with cash management are largely hidden and far less obvious. Many merchants simply do not realize how much they’re paying to accept cash. In reality cost of handling cash is often the most expensive, especially if you handle cash manually, have lax cash management procedures, and process large volumes every day.

The expenses that come with this method of payment come in many forms. First, you have the significantly higher labour costs because you have to count, sort, reconcile, report, store, and deposit by hand. You also have losses that come from human error and administrative error as well as robbery, counterfeit fraud, and shrink. You have the costs of security measures to keep your money safe, such as armoured car fees and security cameras, secure storage such as a cash room and a vault, and the equipment and supplies needed for cash handling on a monthly basis. Though cash is king, it’s also very expensive.

 

[soccerdad72]

Unlike some others here, I don't throw a hissy fit when a business only accepts cash.

And the thing about cash being dirty and germy. So what? You get more germs touching your i-phones or credit cards to pay.

And of course those come along who brag that they charge everything and pay it off monthly if not immediately.

And the ones who honestly can't remember the last time they handled cash are no doubt miserly tightwads who never tip a service worker like a hotel housekeeper.

I’ve never understood why this topic always gets people on both sides worked up. We carry some cash and we use credit cards for a lot of things too, plus Venmo, PayPal, ApplePay, etc. It’s all legal currency and however someone wants me to pay, it’s all good

 

[Lilsia]

You do not have to believe it for it to be true.


https://www.plainscapital.com/blog/the-cost-of-accepting-cash/

https://www.bypassmobile.com/blog/ordering-point-of-sale/the-hidden-costs-of-cash-for-merchants/

https://www.cashdrawer.com/wp-conte...f-Accepting-Cash-eBook-Balance-Innovation.pdf [URL]https://cmspi.com/nam/blogs/t...ps://hbr.org/2014/06/the-hidden-costs-of-cash


Merchants far and wide mistakenly believe that accepting cash is the cheapest option. This erroneous belief is mostly due to the fact that, though credit and debit fees are obvious, the costs associated with cash management are largely hidden and far less obvious. Many merchants simply do not realize how much they’re paying to accept cash. In reality cost of handling cash is often the most expensive, especially if you handle cash manually, have lax cash management procedures, and process large volumes every day.

The expenses that come with this method of payment come in many forms. First, you have the significantly higher labour costs because you have to count, sort, reconcile, report, store, and deposit by hand. You also have losses that come from human error and administrative error as well as robbery, counterfeit fraud, and shrink. You have the costs of security measures to keep your money safe, such as armoured car fees and security cameras, secure storage such as a cash room and a vault, and the equipment and supplies needed for cash handling on a monthly basis. Though cash is king, it’s also very expensive.

The higher labor cost is bogus. To be clear, we are talking small businesses here, not places like Walmart, since most cash only places are small businesses. Most managers are on salary, or are the owners so it's not costing them anymore. Most small businesses have a safe anyway, and almost everyone has security cameras now, and what business does not have a business bank account? All of these are very much grasping at straws, especially the "labor cost". LOL

 

[kdonnel]

The higher labor cost is bogus. To be clear, we are talking small businesses here, not places like Walmart, since most cash only places are small businesses. Most managers are on salary, or are the owners so it's not costing them anymore. Most small businesses have a safe anyway, and almost everyone has security cameras now, and what business does not have a business bank account? All of these are very much grasping at straws, especially the "labor cost". LOL

All the time spent handling cash is time that could be spent doing something else that makes money.

If a manager or owner is spending hours a day handling cash, that is hours a day they are not moving their business forward.

That is what makes it a hidden cost.

 

[DLgal]

The higher labor cost is bogus. To be clear, we are talking small businesses here, not places like Walmart, since most cash only places are small businesses. Most managers are on salary, or are the owners so it's not costing them anymore. Most small businesses have a safe anyway, and almost everyone has security cameras now, and what business does not have a business bank account? All of these are very much grasping at straws, especially the "labor cost". LOL

A lot of small business owners simply don't have or want to spend the time handling cash. My hairdresser owns his salon. He works like 12-14 hour days, with clients back to back. He literally does not have time to carve out bank trips and counting money. To do so would literally cost him money because he could be doing a client's hair instead for $130/cut. Even an hour a day spent dealing with cash would be income lost for him.

 

[mrodgers]

Didn't finish reading. I'm not an expert. This is only what I think it is and I could be wrong with anything I state here...

I think that one must accept "legal tender" for debts, money that you owe someone or something. Making purchases is not debt, it is paying for the product now. They do not have to accept cash. Paying for something that you owe however, such as fines, taxes, parking tickets, fees, etc - cash must be accepted because that is legal tender and you are attempting to pay said debt. I do not have thought on things such as services already/automatically rendered, loans, etc. My thoughts on "legal tender" status of cash is that it is an issue of government compared to individual rights.

 

[Jennasis]

I accept cash or check only at my business and pay many bills/invoices with checks.

 

[kdonnel]

I accept cash or check only at my business and pay many bills/invoices with checks.

Time Traveler!!!!

Do you write checks at the grocery store and use a flip phone as well?

Note: All said in jest. I don't care if people use checks, accept cash, or have a flip phone. I do think that when I see someone writing a check at the grocery store or Walmart that they are a person out of time, especially if they are under 60.