this post was submitted on 21 Jun 2023
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[–] Leyana@aussie.zone 4 points 1 year ago (1 children)

It's a tax dodge. You can skim off the top easier with cash.

[–] Liz@midwest.social 4 points 1 year ago (1 children)

Well, that and the fact that every credit card transaction includes a transaction fee that the business ends up paying. When they add 1.5% (I've usually seen 2.5%) they're just moving the expense from being hidden inside the list price of the things you're buying to being added at the register.

Think of it like a "bank tax” in addition to sales tax. Business could easily include tax in the price, but they don't because customers are used to seeing the lower price and having tax added at the register.

[–] Zagorath@aussie.zone 1 points 1 year ago (1 children)

Right, but as @tfyoung said above, there are costs to the business associated with cash as well. Probably much higher, if a little harder to precisely calculate.

The time and expense associated with handling, counting, and physically banking cash is not insignificant.

[–] Liz@midwest.social 2 points 1 year ago

It's that harder to calculate part that makes some business favor cash. After all, the humans running the business are not perfect economic machines. Some people are going to favor a nebulous expense (that they honestly probably didn't consider at all) over a clear and obvious expense.