Embracing or Frowning Upon Cash Only Businesses

Embracing or Frowning Upon Cash Only Businesses

Recently while exploring some new supermarkets there appeared to be one place that did not accept credit card payments. You have to pay either with cash or debit. This of course saves the business money as one would normally have to pay credit card transaction fees. In-turn, this gives the business an advantage to price items lower where other businesses that would usually factor that the fee costs into the pricing of all items in the store.

Now that can be a good thing for the consumer where you can get stuff for less money. But thinking of it from the other perspective it can be a negative as well. For example, one could argue that the business is doing that to prevent having to report income since cash is harder to track. As well, it can be an inconvenience for the customer who don’t normally carry a lot of cash and how many actually use it as a way to track spending with extra consumer protection.

Funny enough, there are always certain types of places I would expect to only accept cash such as places around Chinatown here. The operations are usually a no frills type of setup where you expect to get things cheaper as a result. But if it is a larger type of business, not accepting ay credit card is a negative for me as you know the business does enough volume to make up for those types of business expenses.

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