Meanwhile in NYC, paying by anything other than cash generally requires a $10-15 minimum. I find it incredibly inefficient and am sick of having to hold cash and constantly go to ATMs.
I understand that the reason these card minimums are in place is because the card companies charge a non-trivial amount that wipes out the store's margins at low prices. How can we solve this?
In credit cards, certain low risk retailers get very discounted rates, such as grocers. In Australia, I think it's a flat rate for grocers to accept a card. I wouldn't be surprised if it's similarly lower in Sweden.
Also the cost of things are higher in Sweden for everything, so I wouldn't be surprised if that is rolled into the cost of things and everyone pays the credit card tax.
Also for large businesses, handling cash has a cost too & card fees are negotiated for lower rates, so accepting cards isn't as big of a deal for them.
I find that true in grocery stores and bodegas, but less so in coffeeshops or food trucks -- perhaps places that value capturing loyalty and repeat customers over the margin of an individual transaction.
Is 3% really wiping out the margin? Square and SumUp charge less than 3% for credit card payments.
At least in Germany that led to smaller minimum amounts. They are now at about 1€.
It probably has been solved. Generally speaking, minimums are against the agreements the stores have with credit card processors. But the stores use minimums anyway.
The problem with bitcoin is very similar to credit. It is extremely difficult for a small business to liquidate.
There is also the added problem of protection. With credit and banking, you are ensured and regulated. Without, you are left to your own ability.
But those aren't the biggest problems. The problem is how do you pay taxes with bitcoin? Their market value at acquisition? Does the market fluctuation between collections and taxes count as interest/losses? Do you have to pay taxes on money lost for changing bitcoin to local currency?
These are all very large problems for a business owner.
You could accept Bitcoin via Bitpay (or any other payment processor supporting immediate conversion to fiat) and receive fiat currency. The good thing is: No chargeback possible.
I understand that the reason these card minimums are in place is because the card companies charge a non-trivial amount that wipes out the store's margins at low prices. How can we solve this?