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

If it’s about card fees (which I get) then could you ask for preferrably cash or bank transfer? I think most people aren’t paying cash anymore because no one really carries it much anymore and I don’t even have a bank card on me most of the time to go to the cash machine, just Apple Pay. I’d be happy to do a bank transfer though.

Just be aware that you can put the sign up, its not likely to change behaviour. We know card payments cost, card payments for most people are too much more convenient.

It would only annoy me if I didn’t know this piror to paying. Otherwise I prefer to pay in cash too.

I think it's fine to put up a sign, but I'm afraid I would still pay by card anyway - I simply don't carry cash these days.

I’d have a notice in bigger font saying ‘PLEASE PAY IN CASH IF POSSIBLE’ The sign you have is too long and wordy and I probably wouldn’t read it.

OP - go to the website of the Competition Appeal Tribunal and search for either CICC or Umbrella Interchange Fee litigation. There has already been a collective (class) action filed on behalf of all U.K. businesses that paid interchange fees (the main part of the merchant service charge you pay your acquiring bank) on accepting commercial cards. There will likely be one filed in relation to accepting other types of cards shortly. Your business is in that class and hopefully eventually will get some compensation.

What most posters won’t realise is that there has been literally decades of litigation and regulatory scrutiny of the Visa and MasterCard fees on the basis that they are anticompetitive and therefore unlawful. Sainsburys, Tesco, etc sued years ago. You can google Sainsburys v Mastercard in the Supreme Court and read the judgment.

It’s interesting - before I started my own business I worked in another similar one where i
out up a similar sign. Cash increased by about 30%. But I don’t want to put off the people who think it’s because I’m dodging tax!

I operate a cash economy as much as I can and will never use a phone payment app until I'm left with no other choice, so I'd probably patronize your place if you were close to me. I walk out of shops that won't let me pay in cash.

As others have said, if your turnover is that high the surely you’re being charged for processing cash too?

When DH was self employed I hated people paying in cash, as it meant keeping it and paying it into his account so he could keep a proper record for taxes.

I do assume that any business that only takes cash is not being entirely honest with the tax man, and I would feel similarly about one that preferred cash due to fees, as it suggests you may not be banking it all!

good luck if you ever need to borrow anything from your bank

if your bank account turnover doesn’t reflect what’s on your filed accounts they’ll not be impressed

me too. I'd have no problem with it and try to comply.

I’ve worked in HMRC and since then always avoid businesses that say they want cash. Tax evasion in small businesses is HUGE and requesting cash payments is a big part of it. I’d assume that you’re dodgy and avoid you.

Have you shopped around for a better rate? Banks hate cash just as much as HMRC. It’s a real hassle for them to have o handle cash.

We used to run a small business , and much preferred card payment
You get charged for paying cash in , and have to actually get to a bank in their increasingly changing business hours

Not offended, but it wouldn't change my method of paying either. I'm happy to (and expect to) pay more, overall if not directly, to enable the convenience, budget control and security I get by not paying cash.

I always have cash on me and occasionally go to cafes that only accept cash. Often the people who I’m with have no cash on them so I end up paying for them as well. But at least you do have the option of paying cash.

There’s a local farm to me that started selling milkshakes in a vending machine. They have had people trying to break into the vending machine to get the cash out. But it’s card payments only for this reason. Some small buisnesses prefer card payments, others say cash is king. My disabled son only has access to cash.

My disabled daughter can only use cash for her respite. So if a venue is card only they have to go somewhere else. I’m totally against a cashless society. A lot of elderly only pay in cash. I myself have gone overdrawn not realising how much I’m spending when all I’m doing is tapping my card instead of handing over cash.

That would totally put me off, even though it’s worded gently, as it would make me feel awkward. I haven’t used cash for years.

The don't worry bit would piss me off. Patronising.

I don't carry much cash since I had my purse nicked.

Also, you've said the same thing twice straight after the first time.

I wouldn’t care if you were dodging tax, but it does feel like you don’t want the custom if it’s paid for by card. You should do more to push the bank transfer option. I
don’t mind doing that when you get sent a little link that makes it quick and easy.

It’s super polite, and there is nothing wrong with the sign, but unfortunately I would ignore it. I only carry my phone now, very happy for you to put whatever on the transaction, but unfortunately it’s just not convenient for me to carry cash anymore.

If I have cash and see a sign like that I’ll pay cash instead as it tends to remind me I have cash. I won’t make a special trip to the cash machine though.

You are swimming against the tide. I can’t remember the last time I paid for something with cash. If I read that note I’d probably think your business is old fashioned and is going to fail in time. Probably not the image you want to project.

You would be losing my business anyway but I am very surprised how much you would be losing per annum if you are not giving a discount or dodging taxes by taking cash only. Surely a cost is a cost?

Fine in principle, but I think your notice is too long-winded. Keep it short, simple and factual.

Start by telling people that you accept debit and credit card payments (the reassuring bit and the critical information for anyone who doesn't have cash). Then say you prefer cash payments.
State that you pay a fee of xx per debit card transaction, yy per credit card transaction and zz for whatever digital payment solution you use (so customers can see the impact).

No need to lecture customers about the impact on prices and profits - they can join the dots. They're in your shop and about to make a purchase by the time they read your notice, so they're clearly willing to support small, independent businesses and don't need any reminders.

I support local businesses I value, but I'm not a charity and like many people I have to watch what I spend. Your profitability is your problem, not mine and trying to make it a moral issue puts my back up. It's very little skin off my nose to pay the way that's cheaper for a business, so I will if I can for low-value transactions.

Me too.

If this isn’t the case then offer a discount for paying cash minus the card or bank fee.

Have you worked out the cost of your time handling and depositing the cash? Is it lower than the percentage the machine charges?