Comment by red-iron-pine
2 years ago
That's still a thing in Canada and the US in various places, generally "mom and pop" run business.
Credit card fees for small orgs are like 1-2% so for a small biz that could pinch. Cash also lets you, uh, "fudge" your numbers for tax purposes.
There's a good sushi place near me that gives a 10% discount for cash. I'm fascinated by this.
(I still use a card because life is short)
That may just be good old-fashioned tax evasion.
(If you pay cash, the business owner can just pocket the money without ever recording the transaction. For digital payments, this is much harder to do undetected.)
Unrecorded cash payment makes it much easier to pay undocumented staff
It's tax evasion.
First comment I see that addresses this. This is a big part of accepting and paying cash. Tax evation. From both sides.
Where I live there's a mom and pop (well, mom and daughter) shop that sells relatively expensive clothes. They stopped accepting Amex because fees were too high, yet they basically apply a 5-10% discount by default if you spend enough...
Yeah I often see small print on the fuel cost per gallon as "cash price" .. I assume this happens mostly on low-margin products.