Shops that refuse credit cards

smokey_dave

Some shops refuse to accept credit cards.

I never use my debit card in these shops and I ALWAYS pay cash. This is because I believe that it costs these firms to pay cash into their banks.

If this is right the more people that pay cash might get them to allow the use of credit cards.

bengalknights

It actually costs less to bank cash then accept credit card!

ILW

bengalknights wrote: »

It actually costs less to bank cash then accept credit card!

And they can probably "avoid" a little tax.

Hominu

bengalknights wrote: »

It actually costs less to bank cash then accept credit card!

Depends on the store, I was told by a manager in Tesco that it costs them more to accept cash than a credit card due to the amount of transactions they process.

It's not just the banking, but they have to store the cash on the premises, secure the cash, transport it to the bank via courier, bank fees, etc.

Small stores will probably get higher CC charges, so cash may cost a little less, but for bigger stores, its cheaper and lass hassle to process CC than cash as its all electronic rather than something that has to be physically moved from the premises.

guesswho2000

Hominu wrote: »

Depends on the store, I was told by a manager in Tesco that it costs them more to accept cash than a credit card due to the amount of transactions they process.

It's not just the banking, but they have to store the cash on the premises, secure the cash, transport it to the bank via courier, bank fees, etc.

Small stores will probably get higher CC charges, so cash may cost a little less, but for bigger stores, its cheaper and lass hassle to process CC than cash as its all electronic rather than something that has to be physically moved from the premises.

This makes sense, large places like Tesco are able to negotiate lower interchange fees due to the volume of transactions they process, which explains why they're happy for me to pay by credit card for a newspaper, for example.

geekonthepc

Yeah I've worked in retail myself and know for sure, when working on a large scale, accepting credit/debit cards is often much more cost effective than cash. Hiring someone in a helmet to come and empty the safe regularly is costly, and that's before you even consider the cost of getting someone to count and check it together with insuring that cash in store. It obviously depends on the size of the transaction, but it many cases cards are far more profitable to use.

yangptangkipperbang

Hominu wrote: »

Depends on the store, I was told by a manager in Tesco that it costs them more to accept cash than a credit card due to the amount of transactions they process.

It's not just the banking, but they have to store the cash on the premises, secure the cash, transport it to the bank via courier, bank fees, etc.

That is why the supermarkets introduced "cashback" - to get rid of the cash.

zerog

yangptangkipperbang wrote: »

That is why the supermarkets introduced "cashback" - to get rid of the cash.

Now they just need to allow cashback with credit cards, and treat it as a purchase. I'd be happy to take £5000 off their hands every so often...

ariba10

The Aqua Credit card pays users 3% of their spending back to them.

It follows that they must charge retailers more than 3%.

vikingaero

We have a very "OMG you don't accept credit/debit card mentality" in the UK.

Compare ourselves with Germany where many shops don't accept cards of any type and it's cash only.

OK there is the black market side of cash, but for a small retailer the costs of card processing are prohibitive. There is the rental of the machine, extra phone line/broadband, paper (£8.99+vat for 16 tiny rolls in Booker last time I looked), credit card % fees, debit card fees, monthly account fee etc.

So for a cash small business having cash means that they don't lose up to 10-15% (when you factor in the true cost) of each transaction. Plus many suppliers offer a 5% cash discount to customers who don't require credit terms.

meer53

smokey_dave wrote: »

Some shops refuse to accept credit cards.

I never use my debit card in these shops and I ALWAYS pay cash. This is because I believe that it costs these firms to pay cash into their banks.

If this is right the more people that pay cash might get them to allow the use of credit cards.

I don't think this is a problem. It's up to the shop owner what types of payment they take, i'm sure your little stand against their choice has them quaking in their boots. Not. Plus it must be pretty inconvenient for you.