Cash or Credit Card?

[Basildog]

Last night i was running low on cash, and a load of staff were champing at the bit to be paid, and i was loathed to go to the bank, si i decided to give 5% discount for cash.As about 80-90% of a normal evening would be Credit Card, i just wanted to up the cash flow a wee bit.Well bugger me, 100% paid cash!!!!!!

This got me thinking.....if i see on menus ,or anywhere for that matter, a small percentage charge for making payment by credit card, it kind of puts my back up.But if you flip it on its head , and charge less for cash, then people really go for it! Strange

[tommy]

not strange at all. it's human nature.

[Holly Moore]

I think you'll find that as a normal practice that that is in violation with the rules of the various credit card companies with whom you do business. It is, in effect, the same as charging a premium to those who use credit cards.

[juuceman]

This got me thinking.....if i see on menus ,or anywhere for that matter, a small percentage charge for making payment by credit card, it kind of puts my back up.But if you flip it on its head , and charge less for cash, then people really go for it! Strange

in New York State, it is illegal to charge a surcharge for the use of a credit card.. moreover, within the United States it is a violation of your merchant agreement to charge a surcharge for the use of a credit card or to require a minimum purchase for the use of a credit card.. violation of this is reason enough to lose your merchant account.. in my experience, it's rarely enforced though..

offering a cash discount is permitted in both instances.. what can you do, people are loath to part with it until they see they can get a deal.. most people don't even think about the charge that the restaurant pays when they use their card..

[Rail Paul]

not strange at all.  it's human nature.

Many US gasoline stations routinely give a discount for cash, even post the cash and credit prices on the price boards. It is usually about 3%, expressed as five cents on $1.50, etc.

Restaurants will occasionally give a cash discount if asked. More often an independent than a chain, which prob has something to do with financial controls on cash.

[Basildog]

Yes Tommy...people are strange

Maybe you could explain the logic behind the pricing of a menu i saw recently...2 courses for £26...3 Courses for £28.To me that means that you can get a dessert for only£2, but how the place is supposed to make money at that price i don't know?

[Basildog]

I think you'll find that as a normal practice that that is in violation with the rules of the various credit card companies with whom you do business.  It is, in effect, the same as charging a premium to those who use credit cards.

oops...better not tell them then

[Charlene Leonard]

also what amazes me is that everyone had enough money on them to pay in cash but would normally pay by credit card. why are all these people carrying quite a bit of cash on them and then choosing to pay by card?

[Basildog]

Thats what i found strange Charlene. When i go out and i intend to pay with Card, then i rarely have enough on me to pay cash.People had not been told before about this offer, i only printed the menus at 6pm

[hollywood]

also what amazes me is that everyone had enough money on them to pay in cash but would normally pay by credit card.  why are all these people carrying quite a bit of cash on them and then choosing to pay by card?

Had they all just returned from Iraq?

[Simon Majumdar]

also what amazes me is that everyone had enough money on them to pay in cash but would normally pay by credit card.  why are all these people carrying quite a bit of cash on them and then choosing to pay by card?

two words

Drug cartel

B'dog - I hear there is a big laundering racket going on down Padstow way and I don't mean keeping Rick's linen pristine

S

[Basildog]

Keep ya mouth shut Simon, or you will wake to find a monkfish head on your pillow

[macrosan]

That'll be last night's date, then

[hollywood]

Keep  ya mouth shut Simon, or you will wake to find a monkfish head on your pillow

INT DAY: WOLTZ'S BEDROOM (SUMMER 1945)

It is large, dominated by a huge bed, in which a man,

presumably WOLTZ, is sleeping. Soft light bathes the room

from the large windows. We move closer to him until we see

his face, and recognize JACK WOLTZ. He turns uncomfortably;

mutters, feels something strange in his bedsheets. Something

wet.

He wakens, feels the sheets with displeasure; they are wet.

He looks at his hand; the wetness is blood. He is

frightened, pulls aside the covers, and sees fresh blood on

his sheets and pajamas. He grunts, pulls the puddle of

blood in his bed. He feels his own body frantically,

moving, down, following the blood, until he is face to face

with the great severed head of Khartoum lying at the foot of

his bed. Just blood from the hacked neck. White reedy

tendons show. He struggles up to his elbows in the puddle

of blood to see more clearly. Froth covers the muzzle, and

the enormous eyes of the animal are yellowed and covered

with blood.

WOLTZ tries to scream; but cannot. No sound comes out.

Then, finally and suddenly an ear-splitting scream of pure

terror escapes from WOLTZ, who is rocking on his hands and

knees in an uncontrolled fit, blood all over him.

[Basildog]

Yeah thats the kind of thing!!!

[WHT]

Last night i was running low on cash, and a load of staff were champing at the bit to be paid, and i was loathed to go to the bank, si i decided to give 5% discount for cash.As about 80-90% of a normal evening would be Credit Card, i just wanted to up the cash flow a wee bit.Well bugger me, 100% paid cash!!!!!!

This got me thinking.....if i see on menus ,or anywhere for that matter, a small percentage charge for making payment by credit card, it kind of puts my back up.But if you flip it on its head , and charge less for cash, then people really go for it! Strange

By federal law you cannot charge more for using a credit card. Nor can you set a minimum purchase. You can offer a discount for cash! Funny, yes. Logical? No.

[WHT]

most people don't even think about the charge that the restaurant pays when they use their card..

Nor should they. it is part of the cost of doing business.

[glenn]

By federal law you cannot charge more for using a credit card. Nor can you set a minimum purchase. You can offer a discount for cash! Funny, yes. Logical? No.

Hmmmm... not so sure about that. I can't find any documentation, but I thought cash discounts were also illegal. Wouldn't everyone use such a loophole if that were the case?

What always confused me is why gas stations can get away with charging less for cash. I wonder if the law regulates industries differently, or if states are the ones actually govern such things.

[juuceman]

By federal law you cannot charge more for using a credit card. Nor can you set a minimum purchase. You can offer a discount for cash! Funny, yes. Logical? No.

Hmmmm... not so sure about that. I can't find any documentation, but I thought cash discounts were also illegal. Wouldn't everyone use such a loophole if that were the case?

What always confused me is why gas stations can get away with charging less for cash. I wonder if the law regulates industries differently, or if states are the ones actually govern such things.

state law covers this in ny.. provides that you are permitted to give a cash discount, but not charge a surcharge for credit card usage..

[WHT]

By federal law you cannot charge more for using a credit card. Nor can you set a minimum purchase. You can offer a discount for cash! Funny, yes. Logical? No.

Hmmmm... not so sure about that. I can't find any documentation, but I thought cash discounts were also illegal. Wouldn't everyone use such a loophole if that were the case?

What always confused me is why gas stations can get away with charging less for cash. I wonder if the law regulates industries differently, or if states are the ones actually govern such things.

I will have to go digging for the papers. You can discount for cash. You can't surcharge for credit Was the thrust of it. Remember in law wording is everything.

[Rail Paul]

I've routinely paid cash for purchases like washing machines or auto tires, and had the merchant knock another $20 or $30 off the price. You ask about the discount for cash after the price is squared away. You get full paperwork for warranties, etc.

With restaurants, I usually ask the owner or maitre before the bill is totalled to avoid the same paperwork problems.

In NJ, discounts for cash are perfectly legal. Surcharges for the use of credit are not. (Except for the growing fees for late payments, exceeding a credit line, etc)

[aliwaks]

I have been trying to figure out how to get more cash and that is absolutely brilliant the 5% goes to credit card fees equipment rental any way LOVING YOU!!!!!!

[NeroW]

Keep  ya mouth shut Simon, or you will wake to find a monkfish head on your pillow

Damn, those are some ugly sumb****es.

[glenn]

I don't get it. If it's true that cash discounts are legit, why isn't this more widespread? Why didn't all the establishments that were charging a surcharge on credit cards before the practice was outlawed, simply offer a cash discount instead? I'm not referring to bargaining with a merchant about paying for tires or whatever with cash and getting x amount off, but a written stated policy, like 5% off for cash. I have never seen this anywhere except gas stations, though not any more. Certainly not in restaurants. I must be missing something aside from a few brain cells.

[pogophiles]

also what amazes me is that everyone had enough money on them to pay in cash but would normally pay by credit card.  why are all these people carrying quite a bit of cash on them and then choosing to pay by card?

I can think of three reasons for doing this:

1. Cash Flow -- As long as the balance is paid off every month, using the card delays having to actually part with the cash by as much as a full month.

2. Record-Keeping -- Documented evidence of where your money went.

3. Earning rebates from affinity cards -- could be frequent flier miles, discounts from GM, cash rebates at end of year...