Paying by cash costs more -Reverse ATMs

[NoMoreE46]

A WSJ article from Yahoo.

https://finance.yahoo.com/news/want-pay-cash-ll-cost-120000404.html

[ptatohed]

I'm seeing no cash a lot at the amusement parks near me (Knott's, 6 Flags, Lego Land....).  I have my theory which wasn't even discussed in the article.  I am convinced it's to prevent employee skimming.  

[MarkintheHV]

I think that this is just the next step towards a cashless society.

[SeaProbe]

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@ptatohed wrote:

I'm seeing no cash a lot at the amusement parks near me (Knott's, 6 Flags, Lego Land....).  I have my theory which wasn't even discussed in the article.  I am convinced it's to prevent employee skimming.  

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Not to mention the cost of armored truck services.

Accepting cash isn't "free" either…

[MissLiz]

Interesting article. We often go to the water park near my house. They used to accept cash and card, but last year they implemented a no cash policy and later added reverse ATM's throughout the park. There was a bit of an uproar in our community as many teens go there (or work there) throughout the summer without a parent, and most of them don't have cards. The installation of the reverse ATM's was meant to quiet the riot. 

[LADave]

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@ptatohed wrote:

I'm seeing no cash a lot at the amusement parks near me (Knott's, 6 Flags, Lego Land....).  I have my theory which wasn't even discussed in the article.  I am convinced it's to prevent employee skimming.  

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As much as merchants complain about high CC transaction fees, the expenses involved in accepting cash are also very real, including actually taking it to the bank for deposit.

In one of my first jobs, one of my duties was taking our cash at the end of the day and putting it in the night deposit box at the bank. I've noticed in recent years that a number of banks no longer seem to have these secure dropboxes for cash. I presume that means actually going to the bank and waiting in line during business hours, when an owner or employee could be doing something more valuable for the business.

The cost of paying someone to go to the bank on a regular basis can add up quickly. If a business can start accepting only plastic money, they can eliminate  that expense alltogether.

[JoeRockhead]

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@SeaProbe wrote:

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@ptatohed wrote:

I'm seeing no cash a lot at the amusement parks near me (Knott's, 6 Flags, Lego Land....).  I have my theory which wasn't even discussed in the article.  I am convinced it's to prevent employee skimming.  

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Not to mention the cost of armored truck services.

Accepting cash isn't "free" either…

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I receive quite a bit of cash weekly. My armored truck service consists of myself, accompanied by two of my Dobermans, in addition to Mr. Smith, and Mr. Wesson (won't even say what I have invested in those two furry companions)

We have a local pizza place near me that is cash only. I'd imagine one of the more significant reasons for going cashless is to reduce the risk of loss through theft, employee or otherwise. Night deposit boxes?... I can tell you, every other time I take cash in for a deposit, they (their system) want my DL number... don't even get me started on that.  

[ptatohed]

We went to a strawberry farm this past weekend to pick, well, strawberries.    The farm was cash only.  I suspect when these smaller mom/pop shops accept cash only it's to avoid fees but I'm sure it's also so Uncle Sam doesn't need to know about every strawberry basket sold.  

[JoeRockhead]

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@ptatohed wrote:

We went to a strawberry farm this past weekend to pick, well, strawberries.    The farm was cash only.  I suspect when these smaller mom/pop shops accept cash only it's to avoid fees but I'm sure it's also so Uncle Sam doesn't need to know about every strawberry basket sold.  

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You got that right... Mr Pizza guy's exact motive (on both counts) and he's not bashful about saying it. 

[pizzadude]

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@ptatohed wrote:

I'm seeing no cash a lot at the amusement parks near me (Knott's, 6 Flags, Lego Land....).  I have my theory which wasn't even discussed in the article.  I am convinced it's to prevent employee skimming.  

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In my opinion, for a number of reasons its cheaper for businesses to avoid cash, even with CC fees:

1) Reduced risks / losses from counterfeit / skimming / theft, etc..

2) Lower costs associated with business cash management ( labor to maintain daily cash / tills / nightly deposits ).  Some restaurants have even pivoted to cashing out servers with a reloadable debit card versus cash tips at the end of shift. 

3) Transactions processing speeds are faster ( no waiting for change, etc.. )

Having said all of the above, I've rarely had a business owner decline to take cash if offered, even sometimes getting a cash discount.  Also I'm sure we all know of a few "businesses" that will never choose to take credit cards and will always operate on a cash only basis.