Discount for cash
Discussion
craig1912 said:
Now retailers can’t charge a fee for credit/ debit cards- are they allowed to give a discount for cash payment, in effect charging you more for paying by card? My Indian Restaurant gives a 10% discount on take away but only if you pay cash.
Why would you offer a discount for an amount that costs you more to process?Jockman said:
Why would you offer a discount for an amount that costs you more to process?
That depends on if the cash is ever going to see a bank account however.Many take away businesses probably buy in cash from the supplier and pay in cash to the "employees" Cash is still king in a business like this.
Even in a convenience store, by utilising cash to fill an on-site cash machine you can get the money into a bank account with no charges. You can't do that with a card transaction.
ymwoods said:
Jockman said:
Why would you offer a discount for an amount that costs you more to process?
That depends on if the cash is ever going to see a bank account however.Many take away businesses probably buy in cash from the supplier and pay in cash to the "employees" Cash is still king in a business like this.
You need to balance up the consequences of conducting your business in this manner.
craig1912 said:
but is it illegal to give a discount for cash when it is clearly illegal to charge extra for a card transaction. Isn’t it one and the same thing?
Dunno, but the provider of their card processing if made aware of it, would be having a stern word with the retailer I am sure.craig1912 said:
but is it illegal to give a discount for cash when it is clearly illegal to charge extra for a card transaction. Isn’t it one and the same thing?
No. If I'm reading OP correctly the disconnect is at declaration stage. With the card transaction route there is a definite audit trail. Perhaps not so with the cash route. It is the practical consequences of running a cash business that is of more interest to me.
Jockman said:
craig1912 said:
Now retailers can’t charge a fee for credit/ debit cards- are they allowed to give a discount for cash payment, in effect charging you more for paying by card? My Indian Restaurant gives a 10% discount on take away but only if you pay cash.
Why would you offer a discount for an amount that costs you more to process?Gassing Station | Finance | Top of Page | What's New | My Stuff