Can businesses refuse cash?

[Carson Dyle]

Your bar serves children?

I live in a college town. They all serve children.

 

[corwin]

I recall a bar back in the mid or late 80s that had 90 cent 16oz drafts. You can imagine how many 10 cent tips the waitresses and bartenders got.

Enough that they probably added up quite quickly

Also in the 80's that had a lot more buying power than it would today

 

[highland145]

I recall a bar back in the mid or late 80s that had 90 cent 16oz drafts. You can imagine how many 10 cent tips the waitresses and bartenders got.

College...$1.50 pitchers...those were the days.

 

[AznAnarchy99]

Good point, maybe there is some sort of minimum fee before it just goes to a percentage of the transaction...

Wait staff too...

If you're not a big business, its usually a flat rate + percentage. I've seen the flat rate at 15 cents per to 35 cents per.

 

[dullard]

Cash is legal tender. Meaning that it can be legally used. But no one is legally required to accept it.

IIRC the fees are by $ amount and not per transaction so that wouldn't make any difference...?

In almost all cases there is a per transaction fee AND a fee by percentage. If your company is large enough you can try to negotate different terms (but good luck with that). But in general, you pay both.


http://www.federalreserve.gov/paymentsystems/regii-average-interchange-fee.htm

http://www.cardfellow.com/blog/average-fees-for-credit-card-processing/

http://usa.visa.com/download/merchants/Visa-USA-Interchange-Reimbursement-Fees-2014-Oct-18.pdf

I could go on and on with links.

Using the last link for a Visa card (see the table on page 7 for credit cards) a small ticket is generally 1.65% + 4 cents per transaction. But some guy like me could come in with a Visa Signature Preferred card at 2.10% + 10 cents per transaction. On a $2 purchase, that comes out to be 14 cents (a total 7% fee).

Edit: to be clear, this is just Visa's fee. The bank that you work with to do the transaction will add their own fee.

 

[corwin]

In almost all cases there is a per transaction fee AND a fee by percentage. If your company is large enough you can try to negotate different terms (but good luck with that). But in general, you pay both.


http://www.federalreserve.gov/paymentsystems/regii-average-interchange-fee.htm

http://www.cardfellow.com/blog/average-fees-for-credit-card-processing/

http://usa.visa.com/download/merchants/Visa-USA-Interchange-Reimbursement-Fees-2014-Oct-18.pdf

I could go on and on with links.

Using the last link for a Visa card (see the table on page 7 for credit cards) a small ticket is generally 1.65% + 4 cents per transaction. But some guy like me could come in with a Visa Signature Preferred card at 2.10% + 10 cents per transaction. On a $2 purchase, that comes out to be 14 cents (a total 7% fee).

I stand corrected...but I'll still take my business somewhere else if they only take cash

 

[Carson Dyle]

Using the last link for a Visa card (see the table on page 7 for credit cards) a small ticket is generally 1.65% + 4 cents per transaction. But some guy like me could come in with a Visa Signature Preferred card at 2.10% + 10 cents per transaction. On a $2 purchase, that comes out to be 14 cents (a total 7% fee).

In my experience, those would be _extremely_ attractive terms. More like 25-30¢ per transaction plus 2.5-3%, with Amex being higher.

 

[Humpy]

Where I work we won't do business with anyone that won't take a CC for a transaction of $10K or less. We've had a few long term vendors quickly change their story when they claimed the couldn't afford to take credit cards any more. Turned out they couldn't afford not to.

 

[xeemzor]

You're assuming I would make you a loan.





Either way I'd have to eat the fee or raise the interest.

But I post on ATOT. Of course I must be trustworthy.

 

[dullard]

In my experience, those would be _extremely_ attractive terms. More like 25-30¢ per transaction plus 2.5-3%, with Amex being higher.

Your bank will add their own fees, this is just Visa's fees.

 

[highland145]

But I post on ATOT. Of course I must be trustworthy.

And you aren't going to 1) need a loan or 2) want to pay my rate.

 

[edro]

Accepting credit cards greatly improves the likelihood of spontaneous purchases.