[Finance] Cash or card ?

[BN9 BHA]

How does paying cash help small businesses?

Unless they are fiddling the books, I can’t see it makes a substantial difference to them.

Last week I did some work at a property and the customer was trusting me to work there while they went out, I was offered bank transfer for payment or cash, I said bank transfer thinking I would be paid the same day…..most of my customers do this on completion of the work.
I’m still waiting for payment, and texting reminders now.
I would have been paid if I had taken the cash, not all small business owners are on the fiddle, some people can’t be trusted to pay on time.

 

[Herr Tubthumper]

I was asked once after buying a Donner meat and chips at Huddersfield last time we visited if I had something smaller than a fiver. True story. It was £1.50.

Can you imagine if you offered to pay using your phone. The kebab shop owner would think he’s been kidnapped and placed in a science fiction film.

 

[Questions]

Can you imagine if you offered to pay using your phone. The kebab shop owner would think he’s been kidnapped and placed in a science fiction film.

Well I thought I’d gone back in time to be honest albeit Huddersfield being a nice place (for pubs )

 

[Bodian]

How does paying cash help small businesses?

Unless they are fiddling the books, I can’t see it makes a substantial difference to them.

My wife works in a small secondhand bookshop (ie; small business). Many of the books they sell are for around £2.50.

The administration fees for debit cards plus charges for the technology/kit to process them can end up taking up to 5% off the sale price - which in itself isn't all profit.

My local greengrocer (another small business) won't accept cards for totals under £5, as it is not worth it for them, as it reduces their margins too much.

 

[timbha]

Last week I did some work at a property and the customer was trusting me to work there while they went out, I was offered bank transfer for payment or cash, I said bank transfer thinking I would be paid the same day…..most of my customers do this on completion of the work.
I’m still waiting for payment, and texting reminders now.
I would have been paid if I had taken the cash, not all small business owners are on the fiddle, some people can’t be trusted to pay on time.

They might have the cash but insufficient funds in their bank account, or the bank grabs anything that goes into their account before they get a chance to spend it, eg if they have debt or an unapproved overdraft.

Probably the type that likes to make you wait

 

[BN9 BHA]

They might have the cash but insufficient funds in their bank account, or the bank grabs anything that goes into their account before they get a chance to spend it, eg if they have debt or an unapproved overdraft.

Probably the type that likes to make you wait

Good reason to why I should have said yes please to cash then.

 

[thedonkeycentrehalf]

How does paying cash help small businesses?

Unless they are fiddling the books, I can’t see it makes a substantial difference to them.

I was talking to the owner of a small local hardware shop. I offered cash for a small purchase but he said they preferred cards now as there were no banks nearby and it was a real pain for them to have to go into the town centre to pay in cash.

I always keep some cash on me just in case. There are only four places where I use cash regularly - my barbers, to use when I go horse racing, when I play football and when I go to The Piggery in Broadwater.

I also still keep a small number of coins in the car for parking. Had to use them in Guildford recently as the car parks didn’t take cards and the phone app they use wasn’t working.

 

[dazzer6666]

I was talking to the owner of a small local hardware shop. I offered cash for a small purchase but he said they preferred cards now as there were no banks nearby and it was a real pain for them to have to go into the town centre to pay in cash.

I always keep some cash on me just in case. There are only four places where I use cash regularly - my barbers, to use when I go horse racing, when I play football and when I go to The Piggery in Broadwater.

I also still keep a small number of coins in the car for parking. Had to use them in Guildford recently as the car parks didn’t take cards and the phone app they use wasn’t working.

Hardware shop will get charged for paying cash into the bank - typically around 70p/£100. May actually be cheaper for them to take a card payment - retailer fees often well below 1%.

 

[Colonel Mustard]

I was asked once after buying a Donner meat and chips at Huddersfield last time we visited if I had something smaller than a fiver. True story. It was £1.50.

I don’t really understand the point here, or the meaning of "true story". All the bloke was asking, surely, was if you had the right money. Presumably he was running short of change. What am I not understanding here?

 

[Albion in the north]

I have a convenience store. I have a very competitive card processing service but it still costs me £450 a month. 2/3rd of my transacations are now by card. All cash gets taken to the wholesalers to pay my bills. Banks are a nightmare to deal with now.

 

[Questions]

I don’t really understand the point here, or the meaning of "true story". All the bloke was asking, surely, was if you had the right money. Presumably he was running short of change. What am I not understanding here?

He looked shocked to see the fiver

 

[Herr Tubthumper]

My wife works in a small secondhand bookshop (ie; small business). Many of the books they sell are for around £2.50.

The administration fees for debit cards plus charges for the technology/kit to process them can end up taking up to 5% off the sale price - which in itself isn't all profit.

My local greengrocer (another small business) won't accept cards for totals under £5, as it is not worth it for them, as it reduces their margins too much.

My and my wife swop money around by using PayPal. This doesn’t cost us anything. Can businesses use this?

PS I have no idea how they make their money.

 

[Paulie Gualtieri]

My wife works in a small secondhand bookshop (ie; small business). Many of the books they sell are for around £2.50.

The administration fees for debit cards plus charges for the technology/kit to process them can end up taking up to 5% off the sale price - which in itself isn't all profit.

My local greengrocer (another small business) won't accept cards for totals under £5, as it is not worth it for them, as it reduces their margins too much.

Putting a minimum spend on card transactions is contrary to the Mastercard and visa Scheme rules and they could get fined, accepting however it’s very unlikely they will be caught out

 

[CheeseRolls]

Cash is just for parking now and the occasional transaction where someone is struggling with the technology. This is two sides of the same story, as parking apps should be regulated. So many of them are difficult to use and downright inconvenient and then they have the cheek to apply a surcharge for the convenience of using their shit app.

1 I do not want to use my mobile number as a username for a parking app, especially when I know I have previously registered for this app using my Email address and a password.
2 If you claim your app is simple to use, at least support simple payments like GPay and I don't want to have to authorise a £1.50 charge via my bank for parking.
3 Councils and car park owners should support multiple apps for payment, which is common in Europe. Then we will be the judge of what is or isn't a convenient way to pay.

 

[Taybha]

He looked shocked to see the fiver

Big white one was it ?

 

[Bodian]

My and my wife swop money around by using PayPal. This doesn’t cost us anything. Can businesses use this?

PS I have no idea how they make their money.

2.9% fee apparently. https://wise.com/gb/paypal-fee-calculator/

 

[worthingweird]

Both... use it or lose it.

 

[Bodian]

Putting a minimum spend on card transactions is contrary to the Mastercard and visa Scheme rules and they could get fined, accepting however it’s very unlikely they will be caught out

Very unlikely anyone will dob them in! They still sell stuff in Imperial as well (or in both to be fair). It's only since I've moved here that they got a till - they used pen and cardboard till around 2006.

 

[chickens]

Having spent a bit of time moving around the country, I had forgotten about cash until I found myself in South Wales, where loads of businesses remain firmly cash only. In that neck of the woods, carry cash or expect a significant proportion of cafes, hairdressers, newsagents and other independents to be off limits.

 

[Shropshire Seagull]

i was shocked to find a dry cleaners yesterday who only accept cash. dodgy springs to mind!

Clearest case of money laundering ever!!