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The problem with cashless restaurants

Senior Contributor

Re: The problem with cashless restaurants


@MakingProgresswrote:

Personally I operate as a cashless person. However my Dad has multiple bank accounts (won't use a debit card, writes checks for bills) and credit cards (only uses them for online purchases or travel) and he uses cash for all other purchases.    He would get up and walk out of a resturant that won't take cash, so that place won't ever get his business. 


That would be me too and I have a wallet full of cards, the "no cash" policy is just too arrogant for my money/business.  

Message 11 of 46
Established Contributor

Re: The problem with cashless restaurants


@corpcrmgrwrote:

I actually know of a restaurant that does not accept any CC payments. There is an ATM machine inside. The restaurant wins both ways: a fee from the ATM and cash that just might not be reported!


Sounds like Hamburger Joes in Myrtle Beach, SC.  Not to mention they are only paying their waitstaff $2 an hour plus tips.  This restaurant also gives you like an 8 ounce see through plastic cup for tea and soda.

 

Now I can understand the barbershop not taking credit cards.

 

Then you have WalMart installing 2 dozen U-Scans when the price of labor is already figured into the product.

Message 12 of 46
Valued Contributor

Re: The problem with cashless restaurants


@pipeguywrote:

https://www.msn.com/en-us/money/smallbusiness/the-problem-with-cashless-restaurants/ar-BBJaSQI?li=BB...

 

I posted a thread on this "no cash accepted" Visa program previously, (7.12.17 Would you shop at a store or restaurant that refuses to take cash?) but this is a good article that looks at both sides.

 

Final paragraph: "It’s true that going out to restaurants isn’t a right. But in an era when an increasing number of restaurants no longer accept legal tender, it’s useful to think about who this system benefits most: the businesses and banks, at the expense of consumers."

 

 


I don't see an issue with it at all. You see cash only restuarants out there, why can't there be cashless only restaurants? 

 

But then again, I'm annoyed by people who live by the motto "cash only." Particularly my roomate who gives me $700 in CASH for his portion of the bills every month. Nope, they don't believe in ACH or checks, but cash only. 

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Message 13 of 46
Valued Contributor

Re: The problem with cashless restaurants


@corpcrmgrwrote:

I actually know of a restaurant that does not accept any CC payments. There is an ATM machine inside. The restaurant wins both ways: a fee from the ATM and cash that just might not be reported!


They've most likely lost more customers and business than the gains they get from their ridiculous tactics. 

 

You: 

 

1) Not only refuse to take cards in 2018.

2) Scream to your customers that you're a cheap business owner and might cheat on your taxes. 

 

But... 

 

3) Make your customers pay an ATM fee to get cash to pay their bill, which the fee probably goes in your (the owner's) back pocket. 

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Message 14 of 46
Valued Contributor

Re: The problem with cashless restaurants

I never use cash if cards are accepted, so I'm a-okay with this.

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Message 15 of 46
Established Contributor

Re: The problem with cashless restaurants


@mountaindewvoltagewrote:

@corpcrmgrwrote:

I actually know of a restaurant that does not accept any CC payments. There is an ATM machine inside. The restaurant wins both ways: a fee from the ATM and cash that just might not be reported!


They've most likely lost more customers and business than the gains they get from their ridiculous tactics. 

 

You: 

 

1) Not only refuse to take cards in 2018.

2) Scream to your customers that you're a cheap business owner and might cheat on your taxes. 

 

But... 

 

3) Make your customers pay an ATM fee to get cash to pay their bill, which the fee probably goes in your (the owner's) back pocket. 


 That's a pretty unfair characterization.   There are many reasons an owner may choose no to accept credit cards.  The number one reason being its a small business with an extremely thin profit margin.  A lot of rural businesses would fall into this category.  And by rural, I don't mean suburban.  I mean out in the middle of nowhere.  Several bars in the northwoods of Wisconsin come to mind.  I'm sure every state has out of the way areas where businesses are run by simple people on a shoe-string budget because they love the business, not because they want to get rich.  Paying the swipe fees and paying for a reliable internet connection isn't worth raising prices to cover those costs to some people.

 As for the ATM, that's not a cheap investment whether they buy it outright or lease it from a service.  And its a convenience provided to those who don't carry cash, so I see no problem with a reasonable fee.  Reasonable being the key word!

 

 I wouldn't purposely NOT go to one of these cashless restaurants in the article, but the whole concept of forced cashless strikes me (as someone else said) as arrogant and condecending.  They would start with that impression and have to work their way out with me.

 

 

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Message 16 of 46
Valued Contributor

Re: The problem with cashless restaurants

I really don't care how slim their profit margins are. Raise your prices by 3% and there wouldn't be much of a reasonable complaint. If you're out in an urban area, there isn't much in the way of competition preventing you from doing so. 

 

As for the ATM, it's not for convienence, it's so the business can make a profit instead of paying credit card fees. Putting a sign up and saying the ATM is for "convienence" while charging a $3 fee is unfair to the customer when they can pull out plastic and pay pretty much anywhere else for free. 

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Message 17 of 46
Frequent Contributor

Re: The problem with cashless restaurants

If the fee was only $3.00. Most of the times the ATM financial institution is some entity just in the ATM business. The ATM has a fee and your bank charges you for using an out of network ATM.


Message 18 of 46
Valued Contributor

Re: The problem with cashless restaurants


@corpcrmgrwrote:

If the fee was only $3.00. Most of the times the ATM financial institution is some entity just in the ATM business. The ATM has a fee and your bank charges you for using an out of network ATM.


My bank doesn't charge me a fee and reimburses all ATM 3rd party fees. 

 

Unfortunately not everyone banks with Scwab, Merrill Lynch, or a select group of credit unions. 

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Message 19 of 46
Established Contributor

Re: The problem with cashless restaurants


@mountaindewvoltagewrote:

I really don't care how slim their profit margins are. Raise your prices by 3% and there wouldn't be much of a reasonable complaint. If you're out in an urban area, there isn't much in the way of competition preventing you from doing so. 

 

As for the ATM, it's not for convienence, it's so the business can make a profit instead of paying credit card fees. Putting a sign up and saying the ATM is for "convienence" while charging a $3 fee is unfair to the customer when they can pull out plastic and pay pretty much anywhere else for free. 


To each their own.  Like I said, for some people its about the clientele, not the profit (beyond keeping the lights on, of course).  Its not hard at all to carry cash and avoid an ATM fee.

 

Besides... nothing is more annoying to me when I visit restaurant bars or big city bars than having to take $.72 in change because of how they have to make exactly a certain percentage profit.

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Message 20 of 46