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

[Theydidnt]

I run a small business and we are taking SO much less cash than we used to. It's really having an effect on how much we are taking. But I'm interested to know whether people would be put off by a sign with this wording or whether people support it. I know lots of people think cash is a way of avoiding the tax man and may find it unprofessional. Interested to know people's thoughts

The main reason that I want cash retained as an option is that if it was completely gone, the banks/visa/mastercard would charge even more as they effectively have almost a monopoly.

Would help if bank branches were not being closed in large numbers, as I am sure I am not alone in only drawing out cash indoors for personal security.

Perhaps a simple 'we welcome cash payments' might be effective instead of giving what seems more detail than most people would bother to read.

So you have high cost purchases surely? It’s not £4 here and £3 there in a cafe.
And you admit business is booming, so you aren’t putting this sign up trying to claw a living you just don’t want to pay the nominal charge out of your profits?
Why do to begrudge that expense but not your electricity, insurance, rates?

When you run a business you look at all areas you can make savings. Energy rates, accountancy costs etc. It’s just one more of those. I haven’t put the sign up, I was asking for people’s opinions on it. Like everything else, I need to weigh up the positives and negatives. And perhaps people are right, probably isn’t even worth my time thinking about it. However, sweating the small stuff has worked well so far for me, so I thought it would be worth asking. It’s also been interesting gauging people’s opinions.

I see those signs aroud and think one of three things - tax dodge, wobbly business (new or indebted businesses are often on COD with suppliers or want to keep money out of the bank) or a business that is badly run or naive as they don't fully compare the costs of taking cash with card fees. As people said cash costs in terms of time, risk, leakage and banking fees.

But I wouldn't be offened, I would just ignore the sig and still pay by card.

Cash is still king for me and I’ve got many bargains simply by having the right cash amount at the right time so I absolutely have no issue with the sign.

I do wonder if you have the card payment machine agreement though. I know there are a lot of small businesses that used to have an issue with card transactions but they are now using companies that charge them very little transaction fees so they now let customers make small purchases of a pound even without worrying about it.

So many shops refused cash now that I don't routinely use it anymore. However I normally always have cash on me, but in notes. Even Santander get funny when you try withdraw change. They might give you "their Las bag of 50ps" in a huff if your lucky to be in rare town that still has a bank.

I'd use cash in a place that regularly accepts it ( local Chinese is cash only). I would also suspect tax evasion, however that wouldn't stop me. The Chinese must be on a tax fiddle

Thanks all - really appreciate the input, very helpful. I’m off now as I have a business to run!

I promise I am:

Not fiddling the tax man
Not taking part in modern slavery
Not rude to my customers (unless they deserve it 😂)

As for the sign, I’ve still not made up my mind but I think changing providers and booking systems is higher up my priority list now.

My family business actually went the other way, preferring card over cash before fully transitioning to card only. the big thing is 90% of people won’t read the sign, so have it copy on the door as well as by the till, so it has more chance of grabbing attention plus they can make decisions about if they want to get cash before they get to the till, the person who suggested the simple four word sign nailed it, no one will read the long sign. Anyone who wants to know more as to why will probably just ask and you can explain.
but keep it simple, big font, by the till and by the entrance

This is very common with our local cafes and independent shops. No issue at all with it.

My hairdresser prefers cash, but will take card payments too.

Their sign is “Cash is King and we love it! No problem if you want to pay by card.”

Some pay by card, majority are paying in cash.

The sign is fine but I'm afraid cash is becoming more and more annoying for most customers. Where I live, all the banks have shut down and there is basically nowhere to get cash out in the first place. The ATM near where I live is out of order and has been for months. Cards/Apple Pay are much more convenient.

I never even have a pound for the supermarket trolley. Which results in me buying less because Im only carrying a basket

I had one of those token things but it kept getting stuck and didnt fit them all.

You also need to weigh up that lots of people will assume it's to facilitate tax evasion. I understand that's not true in your case but you're unusual in that your cash handling fees and associated costs come out lower than your card fees.

It's probably dependant on your demographic whether this will put clients off.

I agree with this. Tax evasion would definitely cross my mind for sure.

Card accepted
Cash preferred

I’m in the minority I can see but I do find the sign a bit cringe. And yes it does look as though you’re avoiding tax. Most of those CASH ONLY businesses so obviously are.

A salon i go to accepts cash or bank transfer. You pay a deposit on booking system by card and the rest on the day

Another option is to have a minimum card spend. We've always set it at £5 and probably only lose a couple of sales a year. Most of the time people are happy to spend more, as we keep our prices competitive. We have a tab system where regulars often pay a fiver and keep it on there for future use.

Card only is all well and good, but when the technology fails, you don't have a back up. The council have been doing works around our shop for the past couple of years. We've had days where the internet and phone lines have just been totally down. If we were card only, we'd be closing up and losing a day's trade or sitting around twiddling our thumbs.

Well I can assure you it's all declared. If it wasn't the expenses that are paid with it couldn't be declared also

And I assume you never but anything on Amazon as the are the ones that avoid shitloads of tax

I dont know why you are getting angry if you havent done anything wrong.

We are merely saying that asking for cash gives the impression you are trying to dodge tax. It doesnt necessarily mean you are doing it but people who are in fact dodging tax would ask for cash so you cant blame people for thinking it 🤷‍♀️

Its not tax (that potentially benefits the public). Its a fee ( that benefit the bank and their shareholders).

I would quite like a three percent pay rise!

I'm not angry.

It only gives that impression to people with a dishonest mind. I don't automatically jump to a business " must be doing something wrong" if they prefer cash ( and OP says she still accepts cards) If it was strictly cash only it might be different

Disagree. We all know that dodgy businesses run on cash and that money laundering is done this way. Its not a secret, its why you cant even pay a significant amount of cash into your own bank account now without questions being asked by the bank.

Someone telling me they would prefer I paid by cash every time would make me wonder if they were legit.

Yes businesses that SOLELY take cash. Not ones that just prefer it

It's getting harder and harder round here to find a functioning ATM that doesn't charge you for withdrawing money.