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I have to feel its misguided in some cases. Credit card transaction fees hit the hardest on small purchases, as they take a larger percent. A business thats lots of tiny transactions might come out slightly ahead with cash, but now youre losing customers, and maybe not book keeping accurately enough to be legally compliant.

I have noticed gas stations are more prone to this (along with very small business), although it happens on occasion at restaurants as well. I figure, with 3% restaurant rewards, I break even at 3% restaurant charge and or using cash.

Actually a lot of cash only businesses are probably dodging taxes.

Keep in mind that accepting cash isn't zero-cost. You need drop safes, daily pickups by secure courier, and you're at risk of robbery (especially for places open at night, like gas stations.) Depending on circumstances, it can cost more than 3%.

those are all things I put in my first comment above.

The real savings are in not reporting the income for taxes, and even payroll taxes / insurance if you get to pay someone with cash with the cash you're given, and worth much more than saving a few % off credit card fees.

> A business thats lots of tiny transactions might come out slightly ahead with cash, but now youre losing customers

Why would businesses that offers a cash discount (which means they also accept credit/debit) lose customers?

Because card paying members may choose to shop the store where they don't feel like they're losing.

Ie; gas station 1 has a 3c cash discount. Gas station 2 has no discount, but you don't feel like you're not getting the discount. Gas station 3 can even compete by having a 1c credit discount.

I think they meant a business that only takes cash.

For me, even when buying things like new computers, it will cost 3%-5% more if I use a card.

The dominance of cards is mostly American or, at the very least, location-dependent.

where as I feel I pay 2-5% less when using a card. Target and Amazon are both 5% off using the right card, vs 2% on a generic cash back card. Gas is 4% off on the costco card.

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