Why is it that some restaurants accept cash only?

Question

There are some restaurants that have signed posted "cash only" Which means you can't use a credit card, debit card, or check.

I am only saying the some restaurants accept cash only.

Answer 1

The reason for this is because you a business has to pay money to a credit card company in order to be able to accept credit cards. They have to go through an application process, pay for the equipment with which to scan the cards, and pay a dividend overall based on how many credit card transactions they do. Visa and Mastercard charge the lowest amount, which is why most businesses accept them. American Express charges more to the business, which is why there are many places that do not accept AmEx.



Its all just a business decision based on whether the business wants to pay the fees or not.

Answer 2

In short, it's because they can.

Less short. Cashing checks or processing charge cards costs them money plus they do not always get their money right away. and they have decided that instead of raising their prices a bit, they just do not allow them. Your credit cards charge the merchant an average of 3-5

% and often a minimum of 1% and topping over 7%. Since it is illegal for them to add a charge to use a credit card, their choices are either to raise all their prices a couple percentage points or not accept cards at all.

One drawback of accepting cash only is that a thief knows that there is a lot of money in such stores and they tend to get robbed.

Another drawback is that those stores are relegated to being low priced restaurants as people are less likely to be carrying around that much money and it turns off out of towners.

Answer 3

honestly ive never ever been in a restaurant that accepts cash only. but i have been in a few convenient stores. they do that because in order to accept cards they must pay fees for every dollar people spend. theyre cheap and dont want to do that. honestly though, the money they would be spending in comparison to the loss of customers or lack of more customers...theyd actually be making more money if they accepted the card. usually the cheap people in this world get screwed. very true.

Answer 4

Its a huge tax evasion dodge operated openly here in the U.K. Go to any Chinatown, Little India etc. and half of them will be cash-only . Register the business off-shore, get your cousin to file your accounts (basically cook the books) and any hole-in-the-wall operation in a prime position, can make a financial killing (despite paying high rental) in six months maybe around £500k+, less minimal staff costs, who are all usually paid below the minimum wage ( almost certainly if they are illegal). The Inland Revenue are never going to investigate the business, they simply don t have the resources, as long as you file returns annually and pay something. You can imagine what this costs the Government in lost revenue!

Answer 5

The card companies charge per transaction. VISA MasterCard and American Express charge about 1 1/2 to 2 percent. Discover charges up to 6% of each transaction. They do cash only to keep prices down.

Answer 6

The banks charge businesses a fee to use card services. That's why some ATM's or stores charge a fee. Those that only accept cash don't want or refuse to pay the fees. Btw, those fees are passed on to the customer in one way or another.

Answer 7

For Tax evasion as “S” suggested. Cash only leaves no paper trail allowing restaurateurs to file less than actual revenue on their taxes. The extra cost to them for management of CC processes is baloney. More and more people are using less cash for the convenience and CC cost is easily off-set if they accepted CC.

http://www.cnbc.com/id/101664403



I avoid carrying cash not only for the convenience of debit cards but studies show the contaminants and bacteria found on paper currency.

http://en.wikipedia.org/wiki/Contaminated_currency



For these reasons I don’t carry cash and I won’t do business with cash only establishments.

Answer 8

I hope not. EBT should be used to buy groceries. Not fast food. In CA EBT can not be used for any kind of prepared food, you cant even use it for a rotisserie chicken at the grocery store.

Answer 9

For Tax reasons. They always declare much less then the actually make. they give you a had written check. Who can prove how much they make in a situation like that?

Answer 10

old fashon they wanna be old fason they dont trust the jews that run the credit card company

Answer 11

So they can avoid people with bad credit.

Answer 12

because ur credit may be bad

ex. the checks my bounce, or the credit, or debit card wont work..

yeaaaap!

Answer 13

because they r lozers that suck