Comment by tonymet
19 hours ago
Jokes on you. Merchants prefer credit cards because there is less loss than cash. 2.5% is nothing compared to 5-10% loss at the register. Plus easier and more accurate accounting.
19 hours ago
Jokes on you. Merchants prefer credit cards because there is less loss than cash. 2.5% is nothing compared to 5-10% loss at the register. Plus easier and more accurate accounting.
If you're expecting 10% loss at the register and have terrible service, that's a 1-2 punch for bankruptcy.
>5-10% loss at the register
Where did you get this number from?
Clankers found me one study [1] that suggests total handling costs may actually be this bad, but are highly business dependent e.g. restaurants are worse than grocery stores
[1] https://www.ihlservices.com/product/the-cost-of-cash-handlin...
I'm just seeing what looks like an attempt to sell me a PDF.
What actually is the source of such costs? The cashier still has to be paid even if the customer is using a card. Presumably there isn't anywhere near that much theft from registers, or people messing up giving change?
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Clank deeper, please. You gave us content marketing from the electronic payment industry:
"Does IHL Group have any connections to merchant providers?"
> IHL Group sells market intelligence, vendor directories, and lead generation data to the electronic payment industry.
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90% of cash I give to restaurants goes in the pocket, not the register.
Bad service = card always.
Are you saying servers keep 90% of what you pay? Tip and otherwise? What country? How do you know? How could a business possibly operate in this reality?
Not necessarily servers, just not into the register as a tracked transaction.
Tax fraud, essentially.
E.g. you go to the Minnesota State Fair, merchants may offer to not charge sales tax if you pay cash. It is shockingly brazen sometimes.
> How could a business possibly operate in this reality?
Extremely lax enforcement on the part of the specific US state's department of revenue
ACH is still the best
https://gocardless.com/
Great, so it is immediately deducted from my account and swiftly deposited into the recipient's account in 3-5 business days.
For B2B transactions that's actually decent. And any disputes can be sorted out in court.
While cc banks are in these times starting to side more with vendors on charge disputes, its still far more recourse than bank drafts offer you in a transactional dispute
20% more expensive than stripe, no?
Cheaper actually, a lot less fees. Stripe is usually death by a thousand cuts.
If your employees are stealing you should probably nip that in the bud...
Cash allows for many more opportunities for diversion.
You know they count the till against the reciepts right? And frequently have cameras over the register drawer pointed at the employee? And send people to jail who try to do this?
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