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

You are not being unreasonable to say cash payments are preferred, but I would think you would lose business if you tried to enforce cash only (which you haven't said that you will).

If encouraging cash payment you need to make sure you have a decent float to pay the correct change.

Our local chippy posted on Facebook explaining how much they had to pay in bank charges, and asked if people could pay by cash if possible. There is also a small sign by the till to say something along the lines of card accepted but cash preferred. ( They have since had a cash point put in- not just for customers, for anyone to use. There is a cashpoint not far away, but if I needed to use one, I would prefer the one inside the chippy, to the one in the wall outside the local supermarket).

I wouldn't take offence at it. If I had the cash available I would pay that way. I would prefer that to being told i could only use one payment method.

Different businesses will have different things that work for them. At a guess some prefer cash due to bank charges. Others may prefer card because they don't want to have to go to the bank with cash, no risk of fake notes, no mistakes in change, could be easier for accounting purposes.

I think I would change the wording a bit to something like-

As a small business we are charged by the bank for every card transaction. These charges add up each month.

If you are able to please consider paying by cash.

If you are not able to then card payment or bank transfer are also accepted.

I suppose people might like to ponder on why there are these charges from banks for card payments for businesses. Seems like they have businesses over a barrel.

Seeing as we have no choice to use banks, I think it should be free. We cant carry our money around in wooden chests any more, we're forced to use banks

I don't think I'd put up a sign saying 'Cash is king' because it looks dodgy. I'd assume some sales were not being declared.

The initial note you had is quite long but explaining about the credit card fees is something I have seen quite a few times and it definitely wouldn't put me off.

Neither sign would make me pay in cash though as I don't tend to carry it these days. I'd hazard a guess most people who pay in cash these days are self employed or kids.

Whats the point in that, the business then ends up loosing X % anyway

Some older people still prefer cash.
One bistro I go to is card only. Recently an elderly couple came in, obviously didn't see the sign, sat down, ordered some food, were asked for a card payment, they didn't own either a dc or a cc...they had to leave.

If it's doing so well, why do you care about card fees?

I wouldn't assume tax dodge but I rarely carry cash so would probably go elsewhere even though you accept card payments.

I remember many businesses only accepting card payment over a certain amount although that seemed to mostly stop when covid started.

I used to make an effort to have cash to buy a coffee from the little independent kiosk at my local station but then I overheard someone asking what they preferred and they said card. Apparently it cost them more to bank the cash than the card fee.

You do know it is legal to pay employees in cash

I run a small business also. You need to shop around if your card fees are high. Is it really a viable business if card fees make a difference?

I think it's very off-putting for customers to be told you prefer cash. I'd assume you want me to trek off to an ATM so you can dodge declaring income and pay less tax. I'd buy elsewhere as I've no interest in supporting the black economy.

If you were employed and your employer says you can have £13ph but actually we’re going to knock a small percentage off so you won’t get the full £13 would it not annoy you?Obviously when running a business these fees have to be factored in and they need to be paid because not all payments are going to be cash no matter how cute a sign is but it’s still annoying earning money and giving some away

Not if they are paying suppliers, knife sharpening and other people in cash then no need to bank it

Was it a nail bar? I’ve swerved a local nail bar for this exact reason and gone to one that accepts card payments. It might be perfectly legit but as you say - it’s a sector that’s notorious for it and asking for cash is supposedly a red flag.

I prefer to use my card via apple wallet mostly these days - a lot more secure. I have chosen to use a chiropractor who takes cash only and its an annoying trek for me to have to get cash out for him when everyone else I use including the car wash guy takes card payments. I hope he cures my pain eventually, that's the only reason I'm sticking with him and there are no other local chiros around.

I go via the cash point to my beautician and my local greasy spoon - it does the best breakfast.

I do this because they have signs saying cash preferred. And I want them to stay in business, so I do what I can to help them thrive. Saying that, I can do this, as they are close to cash points.

Well done on the super fast growth @Theydidnt

I would not put up a sign like that. Do what most businesses do and hike your prices a bit to cover the loss. A sign like that indicates you’re in financial trouble.

I would wager my annual card fees that you work in the public sector 😂

Lots of shops near me have something similar but not as much to read. If I’m going there I will get cash out if the last remaining machine in the town is working.

Sorry I haven't read the whole thread - do you have a business bank account? We did and it was significantly more expensive to pay in cash than it was to accept American Express and other credit cards. The banks don't want to handle cash as it requires humans who are expensive to employ. Plus finding a branch which is open at a convenient time is a rare thing. I prefer cards, except for tiny transactions, as they offer me a level of protection that cash doesn't.

They make the charges because it costs money to provide the service. They also charge businesses for handling their cash (because that also costs banks money), but a small business owner may prefer to spend extra hours managing their cash or risk having cash on the premises etc. so they don't have to use the bank as much rather than pay for it. They can't do it themselves with card payments.

Good grief!

"Due to the costs involved with facilitating card payments..." is your idea of a simple opening to a sign?!

How about:

Please pay with cash, if you can.

Although businesses using signs like this can often underestimate the hidden costs of handling cash, especially now there are fewer neighbourhood banks.

Yeah, why would businesses like banks charge for the services they provide? It's a massive mystery for sure.

And what about supermarkets? We have no choice but to eat food, so they should provide it for free.

At a Christmas market many retailers had a similar sign; and it did make me think of the impact of card fees on small retailers. What was more effective though was that many retailers; particularly food and beverage had a sign on display. Are there other small retailers in your area who would also have similar signs to you?

No need for sarcasm. Banks are hugely rich institutions, we're all making money for them right now, so its not beyond them to provide much much cheaper or even free in some circumstances, banking services. Not above and byond but just some basics perhaps, of which I would assume card payments are one.

By the way Its not the done thing to amend and edit your post to change the complete tone and message which means by the time someone has written a reply their reply doesnt make sense anymore