To be narked that my hairdresser will only accept cash?

[Hillfarmer]

Had my hair cut and coloured at a small local salon in London i.e. not West End. At the weekend. Came to £108.00. Only taken my daughter there before for a trim so it was under £15 and must have paid cash previously.

I asked why, and they said it was ‘easier’. I said it was ‘easier’ for me to pay with a card. They said every card transaction costs them money. I said ‘even a debit card?’ and they replied with a yes.

So off I had to trot to the ATM up the road, presumably just like most of their other customers.

The more I think about it, the more it pisses me off. They are obviously just avoiding tax in some way, aren’t they?

I feel like dropping them a note saying I like my haircut, but won’t be coming back unless they drop the insistence on cash.

AIBU?

P.s. I tip in cash.

They

My old hairdresser used to do this but it was no real bother for customers as there was a cash machine very near the salon.
Surely businesses that take cash only are more at risk of losing out when the bank refuses to accept any counterfeit notes/coins in the takings?

The new notes and £1 coins are meant to be less counterfeit-able than the old ones but there are still many dodgy ones around. I would think the annual cost of a card machine/ipad would outweigh the risks associated with being cash only.

The supermarkets will negotiate with the card processors to enjoy a very low fee, simply because they have bargaining power and can threaten to us a competitor card processing firm. The small corner hairdresser has no bargaining power and "it's take it or leave it" for them.

That wasn't my point - my point was that they put the cost up to cover this for everyone, even the people paying cash. Small businesses don't do this.

my point was that they put the cost up to cover this for everyone, even the people paying cash. Small businesses don't do this.
I don't see they'll have much choice from January, when charging customers to pay by card will become illegal in the UK. Clearly the money will have to come from somewhere.

In nearly 5 years of trading I've had one counterfeit £20 note retained by the bank out of the 1000s I pay in each month, I don't think that's a huge concern!

Sounds well dodgy to me.

I would question ANY company that always accepts cash only.

Maybe to star with, but not after say, 6 months in. No paper trail, very weird.........

I mean 'maybe to 'START' with...' (not star!)

They’re probably laundering money. My hairdresser who used to work in a local place and since moved to a West End salon said a lot of the local ones were just money laundering businesses.

My hairdressers charges an extra 50p for card transactions, it doesn't really bother me as I'm pretty sure up North we probably pay about half the price of southern hairdressers.

Based on the rates I pay for my business, it would cost 48p to take a £108 card transaction. Monthly card terminal rental is £15. If 20 customers a month wanted to pay card then that would be 0.48x20 + 15 = £24.60 to take £2160 worth of payments. Seems worth it to keep those customers happy

They’re probably laundering money. My hairdresser who used to work in a local place and since moved to a West End salon said a lot of the local ones were just money laundering businesses
Your hairdresser said it?
Must be true then!

The local hairdresser round the corner from me was only open 3 days a week, never had any customers, yet when dh asked for a haircut, they couldnt fit him in Most definitely money laundering.

* As a small salon owner myself let me tell you that it costs £150-£450 to buy a card machine*

Or get an iZettle for £30 and no ongoing monthly fee

i would not return there i do not appreciate tax avoidance

That's a bit unfair to decide she's guilty of tax avoidance!
It's completely up to the OP where she goes to have her hair done so she's YADNBU to never go back even for no reason at all.
However the PPs who are convinced its tax avoidance are BVU, especially when the merchant account charges have been described by so many posters. Small business owners have to watch every penny because from the money you give them they have to pay for the salon's rent, rates, phone, elec, heating, advertising, all the products, wages, bank fees, accountants fees, taxes, insurance etc.

It doesn't leave much over so I can see why they would want to save on the merchant account fees and the internet you need to run a card machine.

@mugmugmugmug which merchant account is that? My job today is to find the best one - but all the ones I've seen so far take a % plus a fixed fee.

She’s probably a serial bank start up. Most banks now charge more to handle cash than card payments, unless you’re in the first 12-24 months of a start up contract. Most small business owners do this to an extent.

I've a card machine for my business, and feel qualified to wade in!

Yes, you can get an iZettle for free (or near enough). But the % taken is higher. There is a cost and hassle involved in taking card payments.

I choose to offer card payments, because I think it makes my business appear more professional. But plenty of my colleagues don't, and it is DEFINITELY NOT A TAX DODGE!!!

Oh, and my hairdresser takes cash and cheque only. Yes, it is annoying. But he's good and I've been going there 12 years.

Mugmugmug has a good deal!

mmzz - have a look at Lloyds. Also see if any of your trade bodies/memberships/etc offer a special deal (one of ours does for Lloyds).

@mmzz that's with barclaycard merchant services. There's also a 2p charge on each transaction that's not contactless but I included that in my 48p. Calcs were based on debit cards, credit is higher. Also barclaycard were able to offer a short contract which I was happier about. Lots of others wanted 3 / 4 year contracts

It doesn’t cost 2% for a debit card transaction ours is .44% for debt card and 1.15 for a credit card any business not taking cards wouldn’t be getting my business.

Most card machines use broadband now. So fess is a red herring.

Oh yes I meant to mention we only have one phone line as the card machine works over broadband

Should add our machine was free and it’s 18 fixed charge a month I think. We put about £4K-6k a month through costs between 60-70 most months.

Cash is expensive to handle. As i said above .7% to pay into the bank.
Then we are limited in how much we are allowed on premises
Limited on jow much can be transported to the bank by one person by the insurance company.

Then there are money laundering rules, and i think there are also new rules about paying cash into other peoples accounts.

Sorry i dont trust anyone who comes in and pays 100s or 1000s in cash.

Notacooldad Not sure why you posted such a snide comment?

In most industries someone who is in that industry usually has a good idea of what is going on in their own workplace and that of their competitors, especially when they’re referring to one suburban high street with no less than 5 hairdressing establishments.** Is it because you assumed the hairdresser was a woman and therefore unreliable and full of gossip?

As far as I recall my (male - not that it matters) hairdresser told me he had seen it happen in his own salon as well.* Fictional names and figures would be written into the diary and cash added to the till.*