Comment by lotsofpulp
3 days ago
They are all over the place, especially small businesses. A cash only (paper money) price is typically less than debit card or other electronic “cash” discounts because tax evasion is assumed.
Next time you have an independent contractor do some work, after they give a price, ask them if they will accept 90% or even less if you pay cash.
My barber has a sign with a cash price, a Zelle/Venmo price, and a credit card price.
Like I said, I don't think I've ever seen them. For instance, you can't go into a Walmart or Best Buy and ask for a cash discount. Maybe a small business offers them, but I live in a small town (pop < 4k) and our grocery store and hardware store don't offer a cash discount. Neither do our gas stations offer a discount for paying for gas with cash, as the other reply mentions.
I'm not disputing they exist, just that it's exceedingly rare and not the norm.
> My barber has a sign with a cash price, a Zelle/Venmo price, and a credit card price.
I'm half joking and half serious, is he intentionally trying to confuse customers? Why do Zelle/Venmo have their own prices, and what price do I pay if I just want to pay with the debit card on my phone?
From someone who lives in bay area (so not <4k), this is exceedingly common. Of course Walmart does not have a small business owner on-site who can oversee such adjustments, but think mom and pop / single owner stores. They do it all the time.
Think contractors. They also do it all the time. When I did a remodel a couple of years back, he asked for cash. It was a small amount so I did not think much until my accountant told me I will need receipts if I wanted them added to my house's capital /cost. I asked the contractor and he stalled me for weeks while also saying I will need to pay more for receipts, until one day I forgot chasing (and am thinking of it now) and just let it go I guess.
>I'm half joking and half serious, is he intentionally trying to confuse customers?
He is sharing some of the savings from tax evasion with the customer.
I do not know if he can accept electronic payments from a debit card on the phone. I presume Zelle/Venmo is simpler than figuring out a system to separate debit cards and credit cards.
>just that it's exceedingly rare
Discounts for non credit card payment methods (such as ACH/debit card/Zelle/Venmo/paper cash) seem more and more common to me. Bigger businesses likely won't engage in tax evasion allowing for bigger discounts for paper cash, but fewer and fewer of my expenses are worth paying with a credit card.
I've seen it quite often for gasoline. Two sets of prices, one for credit, the other for debit/cash.
I've also seen it more common as a credit card surcharge (at the bottom of a menu) than a cash discount.