# Businesses that don't accept debit/credit cards **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [April 18, 2016, 3:43am UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533 "2016-04-18T03:43:51Z")\ **Posts on this page:** 13\ **Page:** 4
**Author:** ![Slow\_Moving\_Vehicle](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/slow_moving_vehicle/32/291_2.png) [@Slow\_Moving\_Vehicle](https://boards.straightdope.com/u/Slow_Moving_Vehicle)\ **Post date:** [April 19, 2016, 5:21pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/61 "2016-04-19T17:21:58Z")
> [@jtur88](#): > > The Dollar General store near me has stopped accepting MasterCard Credit cards, because they refused to be blackmailed into paying higher and higher transaction fees for small purchases. They say the fees often swallow the markup. . > > For a long time Sam’s Club would not take cards, just pointed to an ATM in the corner. > > I don’t think there is anywhere that you can use a credit card to buy gold coins, or other forms of investment-grade metals. Maybe not now, but back in 1999 I bought a gold double eagle from a coin shop using my Discover card. ---
**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\ **Post date:** [April 19, 2016, 6:39pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/62 "2016-04-19T18:39:45Z")
> [@NeonMadman](#): > > So, say I walk into a used bookstore and find $50 worth of books that I would like to buy. But the store doesn’t take plastic, and I have only $18 in cash on me. If I really really, \*\*\*really \*\*\*want the books, I \*might \*ask the proprietor to hold the books while I go to an ATM and get cash, but, realistically, most of the time that isn’t going to happen. More often, I will spend a much smaller amount out of the cash I have for the books I want the very most, or I’ll simply leave without buying anything. Probably most often, it will be the latter. And I’m sure I am not unique in this. So, how much revenue is the store losing because of its no-plastic policy? Is it better to have, for example, $750 in sales for the day and collect $750, or to have $900 in sales and collect $873 (and even that latter number is an exaggeration, since it’s unlikely that 100% of their sales will be via plastic, though that’s what I have assumed for the purpose of illustration)? In my experience, the stores that don’t take plastic have average sales that are much lower than $50. The sort of place a person might stop at in the morning to get coffee, a bagel and a newspaper or where you might buy a sandwich, chips and a soda at lunch. or where you stop to buy a half gallon of milk, because you can get in and out faster than at a supermarket. The credit/debit card fees will kill them, because the way the fees are calculated a single $100 sales costs less in fees than 20 $5 sales. And they may not lose any business because of it- few people walk around with absolutely no cash and these are the sorts of places people go to as part of their routine , so they aren’t going to benefit from the sort of impulse buying in the way the bookstore might. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 19, 2016, 6:52pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/63 "2016-04-19T18:52:28Z")
> [@guestchaz](#): > > there are fees for the store associated with cards, rental of card readers, subscription to internet service to use the card reader, subscription to card processing service, etc. (I probably have at least some of these fees labeled incorrectly) Basically, cards are a huge hassle for shops, but one that most stores deal with because not accepting them reduces the potential customer base… I am tired of hearing that “cards are a huge hassle for shops” since so are other methods of payment. Checks are likely the worst, due to bad checks, time spend writing and verifying, etc. But even cash is a hassle. First you have the time spend counting, double counting then triple and quadruple counting once the first two times come out wrong\*. Then, increased risk of employee pilfering, increased risk of hold-ups and the relevant insurance increases, also a cost to deposit cash (especially if in high amounts), risks of money laundering, increased risk of tax compliance issues, and so forth. \*An extra half hour a nite for two staffers is not trivial. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 19, 2016, 6:56pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/64 "2016-04-19T18:56:50Z")
> [@Machine\_Elf](#): > > But it’s harder to account for it. Card transactions incur a fee, which cuts into the profit from that sale; to account for that, you need to jack up the prices on _everything_ in your store. How much? Depends how much of your business is done with credit cards, and how much is with cash. No, you dont need to jack up prices\* . Yes, there is a fee, but there’s also a cost to using cash. And, studies have shown the extra business is more than worth it. - if you have many, many small trans, under $10 or so, then yes, the cost is very high. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 19, 2016, 6:58pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/65 "2016-04-19T18:58:55Z")
> [@running\_coach](#): > > [CostCo is dropping](http://www.usatoday.com/story/money/2016/02/29/american-express-selling-costco-portfolio-to-citibank/81101748/) AmEx in June. Because they are bringing in Visa. [http://www.bloomberg.com/news/articles/2015-03-02/costco-strikes-deal-with-visa-citigroup-after-dropping-amex](http://www.bloomberg.com/news/articles/2015-03-02/costco-strikes-deal-with-visa-citigroup-after-dropping-amex) ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 19, 2016, 7:04pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/66 "2016-04-19T19:04:51Z")
> [@Doug\_K](#): > > Every small business I’ve ever worked for that took cash handled deposits in the same way: One of the owners took the cash and checks in a locked bag and dropped them in the night depository on the way home. Total cost: bupkis. What was the cost of counting and double counting the cash? What was the cost of the hold up insurance? What was the cost of any thefts that might occur on the way or there? What was the cost of employee pilferage? What was the cost of the bank charges for depositing cash? Hint- not “bupkis”. > **[Charging firms for cash deposits? To banks it makes sense](https://www.latimes.com/business/la-xpm-2011-nov-18-la-fi-lazarus-20111118-story.html)** > > Charging firms for cash deposits? To banks it makes sense The issue is that most cash only business owners are not business savvy. They dont see those costs directly, like they see that 2% CC fee charge. Thus, to them, it doesnt exist. But retailers that have hired consultants have seen that CC bring in more $ than they cost- all things considered. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 19, 2016, 7:07pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/67 "2016-04-19T19:07:50Z")
> [@kayaker](#): > > Purchasing the sacred herb is still a cash only transaction, though. Due to Federal Anti-money Laundering regulations, no one will bank pot sellers, even those legal under State laws. ---
**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\ **Post date:** [April 19, 2016, 7:22pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/68 "2016-04-19T19:22:48Z")
5-0, 5-0 !!! ---
**Author:** ![cmkeller](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cmkeller/32/118_2.png) [@cmkeller](https://boards.straightdope.com/u/cmkeller)\ **Post date:** [April 19, 2016, 8:41pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/69 "2016-04-19T20:41:11Z")
There’s a pizza store in my neighborhood (Kew Gardens Hills, Queens, NY) that only takes cash. ---
**Author:** ![GreedySmurf](https://avatars.discourse-cdn.com/v4/letter/g/a698b9/32.png) [@GreedySmurf](https://boards.straightdope.com/u/GreedySmurf)\ **Post date:** [April 19, 2016, 9:19pm UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/70 "2016-04-19T21:19:41Z")
Don’t know if this happens in the States, but in Australia most banks will do a credit check on the proprietor of a small business before issuing a terminal/merchant facility. Back when I was a small business manager, I had at least one occasion where we wouldn’t provide merchant facilities because one of the directors had been bankrupt a few years prior. [This info is now ~10 years old, so whether the Banks still do this I don’t know] ---
**Author:** ![NeonMadman](https://avatars.discourse-cdn.com/v4/letter/n/58f4c7/32.png) [@NeonMadman](https://boards.straightdope.com/u/NeonMadman)\ **Post date:** [April 20, 2016, 3:25am UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/71 "2016-04-20T03:25:44Z")
> [@doreen](#): > > In my experience, the stores that don’t take plastic have average sales that are much lower than $50. The sort of place a person might stop at in the morning to get coffee, a bagel and a newspaper or where you might buy a sandwich, chips and a soda at lunch. or where you stop to buy a half gallon of milk, because you can get in and out faster than at a supermarket. The credit/debit card fees will kill them, because the way the fees are calculated a single $100 sales costs less in fees than 20 $5 sales. And they may not lose any business because of it- few people walk around with absolutely no cash and these are the sorts of places people go to as part of their routine , so they aren’t going to benefit from the sort of impulse buying in the way the bookstore might. Well, I pulled the $50 figure out of my hat, just to put a hypothetical number to the discussion. But oddly, the sorts of places you describe, in my area at least, all seem to take plastic. I buy sodas and snacks or lunches almost daily at 7-11s and QuickChek stores, and they certainly all take plastic, though if I’m just buying a soda for under $2, I’ll usually use cash. If I’m buying lunch, I’ll use my credit card. Even among independent convenience stores, I don’t recall seeing one around here that was cash only. Where I generally run into cash-only situations in New Jersey, where I live, are used bookstores (which is why I used that example) and a very small number of independent restaurants. And I have certainly walked out of both without purchasing (though I fully intended to purchase) because they wouldn’t take a credit card. Which was the basis of my post - are these places actually saving enough on processing fees that they can afford to have customers \*who want to buy \*walking out without buying? ---
**Author:** ![NeonMadman](https://avatars.discourse-cdn.com/v4/letter/n/58f4c7/32.png) [@NeonMadman](https://boards.straightdope.com/u/NeonMadman)\ **Post date:** [April 20, 2016, 3:28am UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/72 "2016-04-20T03:28:42Z")
> [@doreen](#): > > In my experience, the stores that don’t take plastic have average sales that are much lower than $50. The sort of place a person might stop at in the morning to get coffee, a bagel and a newspaper or where you might buy a sandwich, chips and a soda at lunch. or where you stop to buy a half gallon of milk, because you can get in and out faster than at a supermarket. The credit/debit card fees will kill them, because the way the fees are calculated a single $100 sales costs less in fees than 20 $5 sales. And they may not lose any business because of it- few people walk around with absolutely no cash and these are the sorts of places people go to as part of their routine , so they aren’t going to benefit from the sort of impulse buying in the way the bookstore might. By the way, I rarely walk around with absolutely \*no \*cash, but I often have very little. I go to the ATM and withdraw usually $40 for walking-around money. I use it till it is close to depleted, then go back for more. So for any purchase much over $5, I’m looking to use plastic, and it’s really only in the situations I’ve described that I’ve run into an issue. With regard to restaurants that don’t take plastic, there are very few that I’ve encountered, and most of those are high-end, so you would really need to know in advance to have sufficient cash if you were going to eat there. My solution, generally, on encountering one of these places has simply been to eat elsewhere. ---
**Author:** ![gigi](https://avatars.discourse-cdn.com/v4/letter/g/a587f6/32.png) [@gigi](https://boards.straightdope.com/u/gigi)\ **Post date:** [April 20, 2016, 3:38am UTC](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533/73 "2016-04-20T03:38:35Z")
> [@installLSC](#): > > Have you run into any businesses that do this? And do you know any good reasons a store owner would have a “no cards” policy? Yes, the delicious Mountain Creamery in Woodstock, VT\*, takes cash and local checks. I forgot last time and by dumb luck had a check with me, and found out “local” includes across the river. \*Try the VerMonte Cristo and homemade ice cream! [Previous page](https://boards.straightdope.com/t/businesses-that-dont-accept-debit-credit-cards/752533.md?page=3)