Local Diners Opt for Cash-Only Policies to Keep Prices Down
Feeling frustrated by the rising prices of burgers and seafood dishes? You’re not alone. Many diners share this sentiment, and some small businesses have tapped into a cash-only system to combat the 2-3% fees charged by credit card companies. This strategy allows them to keep prices more appealing for patrons.
Take, for example, a traditional tavern that’s been serving up cold beers and hot burgers for 80 years without accepting credit cards. Owner Joe Fessler, who still relies on an old-fashioned cash register, emphasizes the challenge of maintaining a low burger price in light of credit card fees. “If someone swings by for a Coke and pays with a credit card, after the fees, you really lose out,” he explained.
These fees, which can range from 2% to 3% per transaction, can significantly impact small business profits.
The Burden of Card Fees on Small Businesses
According to Doug Kantor from the National Convenience Stores Association, these fees tend to hit small businesses the hardest. “Retailers often find themselves having to either forfeit profits or adjust prices to account for these fees,” he noted. Yet, Kantor offers some suggestions that could benefit both consumers and retailers.
- Consider paying in cash; some retailers even offer discounts for it.
- Negotiate with your credit card provider to find better terms.
- Connect with Congress to advocate for increased competition between payment networks.
“Using cash can be great for you as a consumer and helps support local businesses,” Kantor remarked.
Fessler, the tavern owner, isn’t rushing to adopt newer payment methods like Apple Pay. “If things are working, why change?” he asked. Diners, like Ralph Kelly, appreciate this approach. “I enjoy it when burger prices stay low; it keeps the quality high,” Kelly said.
So, next time you’re out, consider seeking out those small businesses that don’t accept credit cards. Just make sure to have some cash handy—perhaps around $20—to avoid any hassles.
