AIBU to put up a sign encouraging customers to pay in cash?

The OP runs a small corner shop not something the size of Tesco. I am old enough to remember life before magic cards and I've often wondered how much the shops have to pay for the priveledge. In the end it's just the banks getting our money for issuing us a card or the shopkeeper's money for renting him the machine. More fools us since the shop has to factor in the cost of the bank's service into the prices we pay.

Back in the year dot, shops let you buy on tick and pay at the end of the month.............. that was even better than using a card. Also the Post Office sold Postal Orders which worked like cash but you could also sent them by mail. Not email, envelope and stamp mail !

The beautician I use only takes cash and you have to pay a deposit by tansfer when you book. No probs so long as it's all upfront. Many moons ago I ordered coffee and cake at a chain coffee shop and when I gave them cash they said they only took cards, I asked where the signs were, they didn't have any. I left, I had a card but cut off my nose etc on principle.

Yes my kids used to spend money immediately when they had cash pocket money, but in the bank it tends to accrue. DS has over £200 in his current account right now, he forgets about it going in. They've also started transferring some into a savings account, I think it's helped them manage their finances more. They both have direct debits for subscriptions to magazines and streaming services, so it makes them budget and leave enough in their account.

I'm the same. I love being able to properly record/control spending by being able to see it all on bank/credit card statements. I do "formal" book-keeping on our home/personal finances, so everything is reconciled, recorded and analysed. I absolutely hate cash. I always have a few coins and a few notes with me, but I'd far rather leave them untouched as when I use them, I have to remember what I've spent and do a manual entry in the book-keeping.

It's brilliant having such control and over-sight of our spending, and it's saved us a shed load of money over the years by being more aware of spending, and being able to "reign in" when a particular expense category is getting a bit heavy. Also good to monitor for utilities and other contracts so that we know when the contract expires and can change/renew competitively rather than let the direct debits continue for things we don't want or we can get cheaper.

Our DS never uses cash - even when he was younger, when relatives/friends gave notes for birthdays/Xmas, it would go into his bank account. He'd never just "spend" it on nothing as he always wanted to save for big things and loved watching his bank balance rise!

Glad there's someone else like me :-) Yeah I keep on top of my money by watching the bank balance, so if I have a few hundred in cash I feel I can guilt-free spend it as the balance won't change. I don't trust myself. My kids also use their cards for everything, but now the grandparents just bank transfer any pocket money for them. As I'm not a cash-spender generally, I feel guilty handing people cash in shops though and usually apologise for it. Most of it goes on Sainsburys at the self-scan till, but that feels like I'm getting free food due to how my brain works (dopamine hit though I guess!)

I think it depends on the service you are providing and the level of alternatives in the area.

If you are the only insulin provider in an area with high diabetics, then you can do what you like. Customers will have to accommodate you.

If you're a takeaway, with a lot of competitors nearby who don't care how they are paid, then you'll lose some customers.

I don't carry cash. There aren't a lot of ATMs near me and have a strong annoyance with businesses, who want my business but want to dictate how the customer pays.

These signs make me think tax dodhe or inefficient business. Why don't thry factor it into the price or shop around for competitive card options or both?

We used to use our local chipper until they went cash only. Such a pain in the bum to have to go to the ATM first. We just order delivery from the place further away as we can pay card online.

It's always been explained to me that there aren't the advantages to cash these days. Card transaction costs have come down, and accounting for and banking cash has costs.

I don't really use cash anymore so very rarely use an ATM but I don't really need to because my mum still likes cash and if I buy something for her she'll pay me back in cash.

Some older people prefer using cash (or even cheques!) for tradespeople because they find the whole bank transfer thing a pain (which it is with card readers and one-time-authentication codes and the like - preventing fraud seems to come at the cost of making systems unduly complicated).

I'm the opposite of most ADHD people I know - cash feels like free money to me, as my bank balance doesn't go down, so I'll waste it on crap

Oh me too! I feel like the opposite to most people on this issue but this is how I am. Once the cash is withdrawn it feels spent already as my bank balance is depleted and so I think of it as free money. I quite often end up with cash because people give my son cash but he prefers to bank it so I'll the cash off him them transfer to his savings. It's honestly the only frivolous spending I really do - I find it very easy to spend on coffee or nail varnish or other silly little things.

Sorry that's an essay about my brain nobody asked for! Was unreasonably excited to see someone else who felt the same.

I think doing it is fine, but someone's probably already said one bit is repeated, and it's a bit TLDR for me personally.
I run a business but I'm not a cash-user myself - I must admit I assume it's a tax-avoidance issue when people say they prefer cash, and the customers who ask if they can pay us in cash usually add on "is there a discount for that?" as they assume we won't put it through the books and then there'll be no VAT!
But it's necessary to give people the option - one trader I know only takes cash and has said people then say they'll take cash out but they often don't return. In my business I'll take cash but it costs more for me to bank it than cards do (0.99% on card payments but 1.5% I think on depositing cash), and I'm nowhere near a bank so would have to make a special trip, but I'll never say no to any payment method. I end up using it to pay myself as it's cheaper, even though I don't like to use it (I'm the opposite of most ADHD people I know - cash feels like free money to me, as my bank balance doesn't go down, so I'll waste it on crap)

I doubt anyone would say it's tax fraud in itself but some customers (ones who know enough about business banking that they know cash tends to be a similar cost to process) will assume the reason for cash is to keep some payments off the books.

Absolutely not. Go ahead. You will get numpties saying it's tax fraud but just ignore them.

I think the sign is fine but people will ignore it and just use a card anyway. I never seem to have cash anymore, it doesn’t last in my wallet

I think it’s fine. I rarely carry cash but my favourite independent cafe only takes cash payments. I tend to use Apple Pay so often don’t even have a bank card. Yesterday I wanted to pop in the cafe for lunch but hadn’t got any cash or bank card so I went to an alternative (chain) cafe where I could pay.

Yeah all ATMs charge where I live and its not just about the charge- its also the annoyance of having to drive around finding one that is actually working which is so inconvenient.

Also, it's simply not safe or wise to be carrying around wads of cash. I wouldn't advise anyone to do that, its foolish.

Because they live here where cash machines don't charge?

(Although, I can't think of the last time I used cash. I get frustrated now when I can't pay using my phone and have to dig my card out...)

Also, I'd insert the word "card" before the first mention of the word "transaction" .

I think it's a sensible idea for your small business. Do it.
I support a local business - a treasure of a shop - and always make sure I have cash when I shop there.

Good luck.

But it’s a hassle. I rarely have cash. When I get it it’s a pain. The only time it was good was when the kids were small and most clubs were cash payment. That was pre-Covid though, and most things are paid online now. I’d have to make an effort to live my life with cash, and I’d only do that if there was something in it for me - like a cheeky little tax incentive.

I guess what you’re probably thinking is that the OP can use the cash to pay her wages and therefore her living expenses and save the card fees? Yes. She could.

But why would people want to constantly be drawing out cash and carrying it around? ATMs here charge for drawing cash out- why on earth would people do this and carrying around large amounts of cash when doing a weekly shop isnt safe or advised

Starling is an outlier though. And they do accept more ( it is my main bank account and oli often get paid in cash) but charge you. HSBC on the other hand you can pay in 20k per year in cash. Including at the post office

Utility bills can be paid by cash via paypoint.

Shopping can be paid by cash.

That is true, but - assuming not a tax dodge - relies on other people being happy to take cash. Even most personal accounts have limits on how much cash you can pay in these days - my Starling account is £1,000 in a 12 month period I think - so there’s a chance you’d end up awash with cash which most wouldn’t go for, if, for example, you were paying wages in cash. Add to that many suppliers - especially online - can’t/won’t take cash, and eventually you’re going to have to pay some of it in.

It costs nothing to pay other people in cash though

Fair point. I always think the same when I see businesses essentially posting on their FB pages what the OP is suggesting, it’s not free to pay cash in as a business, so what are they on about?

This is what I was thinking, banking cash is expensive too. Also why are you paying for bank transfers - I have several business current accounts and none of them charge for bank transfers. You might need to tidy up your process and look for a better banking deal.

This is of course why people assume it's a tax dodge, because it's not generally cheaper to take cash.