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

I always pay small buisness in cash as I run one myself, but think some people are genuinely not aware of bank charges etc. I would put the sign up ☺️

Not reading the full thread. But my nail bar offers 15pc discount for cash. Most people hoose this. Just up your prices so you are getting what you want

Which is illegal.

Lots of small shops around here have signs saying cash only or cash preferred.

It’s fine. Don’t over think it.

I hardly ever have cash on me so would just make me feel a bit awkward to be honest

It's only reasonable if the transactions are low value (like a newsagents). As you have said it's a beauty business and transactions will be much higher than that I'm afraid I'd think you were looking to dodge tax/pay employees cash in hand (avoiding associated costs and regulations) or have failed to cost things correctly as cash has a banking charge too.

For the type of business you run I'm afraid it would put me off using the services again.

Cash preferred
Card/mobile transactions will be charged the transaction fee

they can’t do that, legally.

Are businesses aware that it costs many of us bank charges to draw cash out at ATMs?

Surely this consideration should go both ways?

You know you can pay an electric bill over the shop counter with pay point don't you ?

It's not illegal to offer a discount for cash. It's illegal to add money on to cover card fees though

How is it a " tax didge" It's keeping the money rather than paying card fees on it. Nothing to do with tax

If it’s wellness / beauty I can’t imagine any offerings under £50 which I’d never have the cash for. There’s no way I’d be going to a cash machine to take it out pre-appointment. People just won’t do it, and the sign really might put people off.

My BIAB nail girl asks us to BACs her the payments so it goes directly to her account and bypasses fees.

Oh really? Why?
If that's the case I would add the transaction fee too all prices to cover it. If your services are good enough, I'm sure most will not mind.
Your business, your prices

Except you would just have to increase your prices generally as I believe it’s illegal in the UK to charge more for card payments

There's way too many exclamation marks in the message. Very off putting and the message is lost when I see that.

Don’t you pay to deposit cash? I do the books for a small business who have a business account with Lloyds and they charge 1.5% to bank cash!! Which is a) daylight robbery and b) higher than the card fees!!

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

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.

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?

It costs nothing to pay other people in cash though

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.

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.

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

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.