We have often discussed CC fees on here.

I am in Maine on vacation, and in Bar Harbor there is a bakery called "Pinky's". As you look at their goodies, you will notice a sign near the register that says "cash only". Next to the register is an ATM. On that ATM is a sticky note that says "Pinky's portion of ATM transactions is $2.00".

I immediately thought of TexAgs.

Not only do you pay tourist prices, but Pinky's makes an extra $2.00 on top of most transactions just by requiring that customers pay in cash! That place wouldn't last one week in Aggieland!

We were in Camden ME a couple of weeks ago and I ordered a couple of lobster rolls at a drive-up stand. When I tried to pay with a credit card, she pointed me to their conveniently-located ATM right there near the parking lot. Since I didnt bring my bank debit card, I had to cancel the order.

Rex Racer said:

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We have often discussed CC fees on here.

I am in Maine on vacation, and in Bar Harbor there is a bakery called "Pinky's". As you look at their goodies, you will notice a sign near the register that says "cash only". Next to the register is an ATM. On that ATM is a sticky note that says "Pinky's portion of ATM transactions is $2.00".

I immediately thought of TexAgs.

Not only do you pay tourist prices, but Pinky's makes an extra $2.00 on top of most transactions just by requiring that customers pay in cash! That place wouldn't last one week in Aggieland!

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I never found Bar Harbor; however, my wife and I enjoyed staying in Bah Habah in 2014.

Salt Lick BBQ, Driftwood, Texas was cash only at least since 1979 when I started going there.

The Cleburne Cafeteria in Houston was cash only for decades. After the fire and rebuild they started taking cards.

maroon barchetta said:

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Yankees

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I agree. I love to visit though

oklaunion said:

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Why don't y'all carry cash?

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Sometimes I have to visit Chicago, Portland and NYC.

oklaunion said:

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Why don't y'all carry cash?

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I just don't go to the trouble of getting cash. No need 99.9% of the time, and I hate getting change because I don't like carrying coins in my pocket.

My father always carried at least $20 in cash - usually more.

I rarely even take a card out anymore. I use my watch to pay for most things now.

LOYAL AG said:

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oklaunion said:

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Why don't y'all carry cash?

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Because I don't. It's inconvenient and inherently more dangerous. If we go run errands this weekend I might spend $500+ in all those stops. So if the guy behind me at stop #1 sees me with that much cash and decides he wants it now I have a physical altercation in the Costco parking lot that might lead me to shooting that guy and now my day is ruined. I go months at a time not spending cash.

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Costco doesn't take cash. Why would you have your cash out there?

maroon barchetta said:

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LOYAL AG said:

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oklaunion said:

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Why don't y'all carry cash?

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Because I don't. It's inconvenient and inherently more dangerous. If we go run errands this weekend I might spend $500+ in all those stops. So if the guy behind me at stop #1 sees me with that much cash and decides he wants it now I have a physical altercation in the Costco parking lot that might lead me to shooting that guy and now my day is ruined. I go months at a time not spending cash.

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Costco doesn't take cash. Why would you have your cash out there?

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Odd detail to focus on but that's not true.

Mine straight up told us we can't use cash when we signed up. And I've never seen anyone use cash there.

I use cash there regularly. I only use the costco citibank card for gas

Weird. They told us when we signed up that we good use Visa debit only.

They also pay out the change for all their annual cash back checks they send to the executive members when they are used.

Rex Racer said:

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We have often discussed CC fees on here.

I am in Maine on vacation, and in Bar Harbor there is a bakery called "Pinky's". As you look at their goodies, you will notice a sign near the register that says "cash only". Next to the register is an ATM. On that ATM is a sticky note that says "Pinky's portion of ATM transactions is $2.00".

I immediately thought of TexAgs.

Not only do you pay tourist prices, but Pinky's makes an extra $2.00 on top of most transactions just by requiring that customers pay in cash! That place wouldn't last one week in Aggieland!

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We just got back from Maine. at midnight,,,foliage colors were very disappointing this year due to droughts...rivers were was down.

Write on your ticket that 2% of your tip was given to your restaurant via the ATM machine,

oklaunion said:

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Why don't y'all carry cash?

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I do carry cash but like to use my SWA card for everything as all of out airfares for the past 10 years have been purchased with points, We don't carry a balance on any card

maroon barchetta said:

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Yankees

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Joe T Garcias in FW pioneered this practice.

australopithecus robustus said:

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I've said it before on these threads. The banks have done a stellar job of getting everyone on the convenience leash to use cards and ultimately it costs everyone more.

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Or the middlemen (parasites) who make money off this have succeeded wildly in convincing banks and customers of the objectively idiotic delusion that convenience should have a price tag.

In any event the Big Lie and Theft persists until someone has the will to actually legislate it out of existence.

I'm reminded of the story about how NY Senator Al D'Amato killed an attempt to legislate away ATM fees. These fees (like the CC ones) are not real. They are theft.

FlyRod said:

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australopithecus robustus said:

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I've said it before on these threads. The banks have done a stellar job of getting everyone on the convenience leash to use cards and ultimately it costs everyone more.

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Or the middlemen (parasites) who make money off this have succeeded wildly in convincing banks and customers of the objectively idiotic delusion that convenience should have a price tag.

In any event the Big Lie and Theft persists until someone has the will to actually legislate it out of existence.

I'm reminded of the story about how NY Senator Al D'Amato killed an attempt to legislate away ATM fees. These fees (like the CC ones) are not real. They are theft.

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I hope not. No one has forced me to get a credit card. Too much increased government intrusion in our lives already. Just go elsewhere is a business doesn't take cash.

australopithecus robustus said:

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This is spot on. If you want the convenience, you'll pay for it.

This issue is that now the system is set that even if you pay cash, in most cases you're paying the same as the convenience/credit card payers, which means everyone is paying more. The 3% merchant processing fees in most cases are passed on to the consumer as they are embedded into a higher price.

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This is true. Merchants can offer a cash discount but most seem to not do that or they do it backwards by charging a convenience fee which isn't technically legal in Texas. Most just seem to charge $x regardless of how you pay.

Im a fractional CFO so I'm acutely aware of the cost of doing business, probably more than most anyone on here given that I work with small businesses on profitability for a living. I'm fine with passing on the fee. I'm fine with not taking cards. I'm fine with a cash discount. What I'm not fine with is the incessant whining from small business owners about how hard it is and how expensive they are. I'm aware. Fix your margins or don't take cards. Just stop whining.

LOYAL AG said:

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australopithecus robustus said:

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This is spot on. If you want the convenience, you'll pay for it.

This issue is that now the system is set that even if you pay cash, in most cases you're paying the same as the convenience/credit card payers, which means everyone is paying more. The 3% merchant processing fees in most cases are passed on to the consumer as they are embedded into a higher price.

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This is true. Merchants can offer a cash discount but most seem to not do that or they do it backwards by charging a convenience fee which isn't technically legal in Texas. Most just seem to charge $x regardless of how you pay.

Im a fractional CFO so I'm acutely aware of the cost of doing business, probably more than most anyone on here given that I work with small businesses on profitability for a living. I'm fine with passing on the fee. I'm fine with not taking cards. I'm fine with a cash discount. What I'm not fine with is the incessant whining from small business owners about how hard it is and how expensive they are. I'm aware. Fix your margins or don't take cards. Just stop whining.

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Yep, it's much about knowing and controlling costs. As a self-employed contractor for the past 40 years, you have to know your expenses to the nth degree to survive in this world.

woodiewood1 said:

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LOYAL AG said:

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australopithecus robustus said:

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This is spot on. If you want the convenience, you'll pay for it.

This issue is that now the system is set that even if you pay cash, in most cases you're paying the same as the convenience/credit card payers, which means everyone is paying more. The 3% merchant processing fees in most cases are passed on to the consumer as they are embedded into a higher price.

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This is true. Merchants can offer a cash discount but most seem to not do that or they do it backwards by charging a convenience fee which isn't technically legal in Texas. Most just seem to charge $x regardless of how you pay.

Im a fractional CFO so I'm acutely aware of the cost of doing business, probably more than most anyone on here given that I work with small businesses on profitability for a living. I'm fine with passing on the fee. I'm fine with not taking cards. I'm fine with a cash discount. What I'm not fine with is the incessant whining from small business owners about how hard it is and how expensive they are. I'm aware. Fix your margins or don't take cards. Just stop whining.

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Yep, it's much about knowing and controlling costs. As a self-employed contractor for the past 40 years, you have to know your expenses to the nth degree to survive in this world.

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Exactly. What I've learned in my decade plus working exclusively with small businesses is that owners are near universally operational experts and not well versed on money. In other words they're great at running their business with no real idea on how to make money at it. They know they have to control costs but don't know how and get overwhelmed quickly when you start talking about the details and margins and how to measure snd understand these things. Biggest challenge I have for most of them.

Here's an example of a transaction for a taxable $3 item with a common CC fees charged at a business in Brazos County:

$3 Item

8.25% Sales Tax

$0.25 Tax to Comptroller

$3.25 Charged to customer

3.5% ( of $3.25) + $0.15 CC Transaction Fee

$0.26 Transaction Fee to CC Company

$2.74 kept by business.

Notice how much more the fees effect smaller transactions. This is why we try to limit CC transactions to $5 or over.

WonkaTXRanger said:

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Here's an example of a transaction for a taxable $3 item with a common CC fees charged at a business in Brazos County:

$3 Item

8.25% Sales Tax

$0.25 Tax to Comptroller

$3.25 Charged to customer

3.5% ( of $3.25) + $0.15 CC Transaction Fee

$0.26 Transaction Fee to CC Company

$2.74 kept by business.

Notice how much more the fees effect smaller transactions. This is why we try to limit CC transactions to $5 or over.

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Yeah the $.25/transaction fee is a lot on small ticket business like convenience stores. Back in the old days when I would negotiate deals for companies I worked for if it made sense for us I'd push back on that fee specifically. Mostly I was pushing back on the tiers or firing processors that only had tiered pricing in favor of interchange plus processors. I fired First Data more times than I can count even telling one sales person their company was dishonest trash and there was nothing they could say to change that opinion.

Now it seems it's either interchange plus or your processing is captured in your POS such as Square, Toast, etc. Generally those POS based ones are high when you consider how cheap debit cards are but it works out reasonably well if you have a good blend of bit cards and reward credit cards.

If I were you running a lot of low dollar transactions I'd contact the processor to reduce that $.25 to $.10 and/or reduce the discount from whatever you're paying to around 2.5%. Deleon total dollar volume Square will do that specifically if you ask. You noted 3.5% as your discount, that's really high for card present transactions. That number should be closed to 2.75% to 2.9%.