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BA Deere
Honored Advisor

Trend back to cash.

I don`t have a link to a story, but locally since Christmas a grocery store has been giving a 3% cash discount.  They want the cash, no credit cards or even personal checks, they want cash.  Then a couple weeks ago a local eatery started giving a 10% cash discount, they won`t even swipe a credit card on bills less than $10, I haven`t noticed they`ve raised their prices, but I`m convinced the portion sizes are less.

 

A small local gas station always did charge 4 or 6¢ more than all other local stations if you payed with a credit card. That was quite a gas station, back 30+ yrs ago, the only ID that a 17yr old needed to buy a 12 pack was a snowmobile helmetSmiley Wink

 

On credit card statements, I`ve noticed that some are charging over 20% interest, not that long ago some credit cards were below 10%.  So much for that "cashless society" that we were supposedly moving towards.

14 Replies
kraft-t
Senior Advisor

Re: Trend back to cash.

Most credit card companies will not allow the business to give discounts for cash. The business will sacrifice the use of credit cards by its guests.

Samnospam
Advisor

Re: Trend back to cash.

There was a lawsuit or the law was changed er something I don't remember, but the banks can't punish retailers anymore for discounting cash.

Red Steele
Veteran Advisor

Re: Trend back to cash.

Local medical provider sent me a bill this month for services and put in a memo to take off 25% if I pay the bill in the next 45 days. I think they just want to get paid.

 

I regularity see cash discounts posted, especially in the mom and pop gas and convenience stores,  and some places won't take the high fee cards like my American Express.

Samnospam
Advisor

Re: Trend back to cash.

We had a bill at a local hospital a couple years ago, the wife called about paying it and the person on the phone instantly went into a payment plan routine, the wife asked how much if I just pay it all now, she got a big discount.
r3020
Senior Advisor

Re: Trend back to cash.

The local Case IH dealer gives a 10% cash discount. Still too high.

Nebrfarmr
Veteran Advisor

Re: Trend back to cash.

Some credit card companies charge the business a transaction fee, for running it through the credit card.  I learned this from a guy I went to HS with, that runs a little repair shop/parts store.   I bought a couple oil filters from him, and said I forgot my checkbook, why not put it on my Visa.   He said Visa charges him a per-transaction fee, and they prefer not to put anything under $50 on a card, as their fee eats into their profit too much.  I think he said it varies from card to card, with the worst offender charging $2 per transaction, or 4%, whichever is greater.

He gives a 5% cash discount on everything, and 10% on labor, if you pay your bill before you drive out of his lot.

cotman03
Senior Contributor

Re: Trend back to cash.

If medical care was based more on cash payments than insurance payments, we would have never even heard of Obamacare.  And we would all be paying much less for it.

gough whitlam
Senior Contributor

Re: Trend back to cash.

The banks have done very nicely out of instant finance and at our expense. We all want the free enterprise system, the freedom to do what we want (don't we ), so they give it to us.  Now we don't like it!  Beats me.

Craig's Brother
Senior Contributor

Re: Trend back to cash.


@Nebrfarmr wrote:

I think he said it varies from card to card, with the worst offender charging $2 per transaction, or 4%, whichever is greater.


My credit card clearing house charges me 2.9% on the dollar amount, plus 30 cents per transaction fee.  This is the lowest cost card clearing house I could find!  On my non-profit, the rate is a tiny bit cheaper, 2.2% which isn't a huge difference.  The international rate charged is 3.9% plus a currency conversion fee that seems to vary by country and amount.