Discount for cash

[craig1912]

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.

[dalenorth]

Tax dodging barstewards!!

[anonymous-user]

Yes. definite discount for cash - the full 20% VAT and 19% corp tax.


Should be getting on for half price, really.

[Jimmy Recard]

[Jockman]

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?

[ymwoods]

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.

[Jockman]

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.

Well, indeed. None of us here are naive.

You need to balance up the consequences of conducting your business in this manner.

[craig1912]

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?

[hyphen]

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.

[Jockman]

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.

[Helicopter123]

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?

[ymwoods]

Helicopter123 said:

That was my thoughts too, but he says no one here is naive.