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Dear Helena,
I was at a small but chic restaurant recently, taking four friends out to dinner. There was no sign on the door or menu saying that the restaurant was cash only, and I didn’t have any cash on me. There was no ATM in the restaurant, and the nearest one was a block away in the fog. I only found out about the cash situation when I overheard another diner commenting on it. I feel the restaurant should have advertised the fact that it was cash only loud and clear, considering it wasn’t the type of place you’d expect to be cash only. What’s the restaurant’s responsibility? —Empty Pockets
Dear Empty Pockets,
Cash-only restaurants can be annoying, as discussed on this Chowhound thread. But accepting credit cards is a hassle for the restaurant—more so than many people realize. The restaurant must buy or rent a credit card terminal and pay a third-party company to process the payments. It also forks over a percentage of sales to the credit card company (this varies depending on the size of the business but is usually between 2 and 4 percent, according to restaurant owners I interviewed). Small businesses don’t have the clout to negotiate over these charges, which is why the National Restaurant Association is supporting the Credit Card Fair Fee Act of 2009, a bill that would allow restaurants to negotiate with credit card companies as a group.
Some Chowhounds argue that the real reason restaurateurs choose to be cash only is so they can underreport their income to the IRS. True, it’s easier to hide income if you’re paid in cash. But, as John Parsons, daytime manager of cash-only Aurora in Brooklyn, points out, such businesses also attract extra scrutiny from the IRS, so it pays to be scrupulous about keeping records.
Whatever its reasons, if a restaurant is cash only, it should indicate this clearly: in the window, on the menu, and when the server introduces himself. It doesn’t hurt, says Parsons, to remind customers at the time they make a reservation. Granted, a “CASH ONLY” sign in the window doesn’t create a very welcoming impression. “It’s off-putting,” says Gary Koenigsberg, general manager of cash-only Angelica Kitchen in New York. But the sign doesn’t have to be in letters a foot high. And it’s surely better to compromise the ambiance than risk losing a customer because he’s discovered Visa is unwelcome. According to Jack Murphy, owner of San Francisco’s Pizzetta 211, a customer walks out in a huff over the issue about once a month.
What if you’re caught out sans cash or ATM card? Then, says Koenigsburg, the restaurant has no choice but to accept your promise to return with cash (or to mail a check). It can hardly demand your iPod or watch as collateral.
To avoid being stuck, it may help to know when to expect a place might be cash only. Obviously, the policy isn’t unique to holes in the wall. If the restaurant is a neighborhood place that doesn’t serve a lot of businesspeople, it’s more likely that it will be cash only. Any restaurant with a strong business clientele can’t afford to reject plastic, Parsons explains. “People are taking clients out to entertain and want to put it on their credit cards so they can write it off.”
If a place is ultrapopular it’s more likely to be cash only, simply because it can get away with it. Murphy can afford to do so because many hold his pizza to be some of the best in San Francisco.
But even the most well-loved and venerable eatery will suffer if the average check is over $25. Case in point: Gino’s in Brooklyn. The average per-head at this popular red-sauce joint is $60. For the first 64 years of its existence, the restaurant survived without accepting plastic, but owner Michael Miele says, “A lot of younger people didn’t want to pay cash, and I didn’t want to lose customers.” Gino’s recently caved in. No matter how good the spaghetti, people nowadays don’t want to carry wads of cash in their back pockets.
I sometimes have said "you do accept cash?" because plastic seems to be the payment of choice at so many places ..... it is a sad commentary on our society.
It isn't just small restaurants: up until very recently McDonald's didn't take credit cards. I always carry a check in my pocket, and most places that take only cash will also take a local check. Of course if you're walking into a restaurant with someone you could bum a few bucks off of them. It is silly for a high end place like Lugers to only take cash... like many places put a minimum for the...+READ
It isn't just small restaurants: up until very recently McDonald's didn't take credit cards. I always carry a check in my pocket, and most places that take only cash will also take a local check. Of course if you're walking into a restaurant with someone you could bum a few bucks off of them. It is silly for a high end place like Lugers to only take cash... like many places put a minimum for the using a card...and always carry around 20 bucks in your pocket!-COLLAPSE
This is not a difficult concept. The use of plastic is commonplace in our society. If a business wants to attract customers be friendly to them, it should accept visa and mc at a minimum. If it doesn't it should publicize this prominently, with a sign in the window. Don't make me sit down and open a menu to find that I have to leave and get cash.
I understand there is an added cost to accepting...+READ
This is not a difficult concept. The use of plastic is commonplace in our society. If a business wants to attract customers be friendly to them, it should accept visa and mc at a minimum. If it doesn't it should publicize this prominently, with a sign in the window. Don't make me sit down and open a menu to find that I have to leave and get cash.
I understand there is an added cost to accepting credit cards (and I assume to debit cards as well), but that's the cost of doing business.-COLLAPSE
Quo Vadis, I don't think you can edit comments at all, only posts to threads at CH. (Stories are considered Chow, not CH. I think.)
About the topic: This may be really old school, or maybe it's just the places I frequent, but I always entertain at least the *possibility* that a place is cash-only unless it's a chain, huge, part of a hotel, the business of a big-name restauranteur, or something...+READ
Quo Vadis, I don't think you can edit comments at all, only posts to threads at CH. (Stories are considered Chow, not CH. I think.)
About the topic: This may be really old school, or maybe it's just the places I frequent, but I always entertain at least the *possibility* that a place is cash-only unless it's a chain, huge, part of a hotel, the business of a big-name restauranteur, or something else that declares "establishment". The places I prefer are more likely to be cash only, so it's a good thing to keep in mind. Even when I pay with plastic I sometimes like to leave a cash tip, because who doesn't like cash?
On the few occasions when we've been caught without cash in a cash-only place, generally, I stay while my dh dashes to the closest ATM. We have written checks a few times - if it's small and they know you, no biggie. If I'm with friends we try to send out just one person to get cash while the others stay to minimize the restaurant's (and maybe the server's) worry.
And... it's not fair, but people trust me. It is very rare that they don't trust me more than they should. That's what I give off. I just feel sorry for people who are just as trustworthy but don't look like it, yk?-COLLAPSE
@MamaM,
Come to think of it, I've used my card when stocking up at Yoder's near my parents' in Eastern Ohio many times.
There are a number of restaurants and stores that are cash only or no Amex on an island where my family spends our summer weekends and vacation. The cash machines on the island have Manhattan-sized fees.
Many, many times I have thought I would spend much more in a store or go out more often if my cards were accepted. I can't justify spending a huge ATM withdrawal fee (plus the one from my bank...+READ
There are a number of restaurants and stores that are cash only or no Amex on an island where my family spends our summer weekends and vacation. The cash machines on the island have Manhattan-sized fees.
Many, many times I have thought I would spend much more in a store or go out more often if my cards were accepted. I can't justify spending a huge ATM withdrawal fee (plus the one from my bank for going out of network) any more than I can justify taking out all the cash needed for my vacation in advance.
I have done the books for several credit card-accepting businesses. Dealing with returns and holds and authorizations does not take a month- perhaps it takes five business days. Usually it takes no time at all. Monthly rentals of the equipment cost about $20-$40, folks. Seems to me you could make that up in no time if I can spend more money in your establishment.
If a business is worried about the 23 cent swipe fee, I would be happy to give you a quarter if you let me use my card.-COLLAPSE
American Airlines no longer accepts cash for their snacks & drinks sold on flights. And just to make matters more confusing, their short-haul affiliate American Eagle ONLY takes cash, no credit cards.
Go figure.
Even the Amish are using and accepting credit cards - visit Lancaster County (PA Dutch Country) sometime - it's beautiful and visa-friendly. Our local mall doesn't accept CASH for gift cards. They ONLY accept credit cards and they charge $2.50 processing fee on top of it! I was going to buy a gift card for a little girl from a disadvantaged family for Christmas, but seriously - no checks, no...+READ
Even the Amish are using and accepting credit cards - visit Lancaster County (PA Dutch Country) sometime - it's beautiful and visa-friendly. Our local mall doesn't accept CASH for gift cards. They ONLY accept credit cards and they charge $2.50 processing fee on top of it! I was going to buy a gift card for a little girl from a disadvantaged family for Christmas, but seriously - no checks, no cash. She got a Target gift card.
The world's gone mad - the Amish take credit cards, the shopping mall refuses cash. I just want to eat.-COLLAPSE
glowworm, you don't know any Amish people.
APB, I don't believe I've ever had zeros added at the end of the total, but I certainly have met a huge number of cashiers who can't do the math to figure, say, how much change to give when I pay for a $4.50 purchase with a $5 bill. Scary but true.
As for being charged for the wrong meal--this happened recently when I was paying cash and was quite easy...+READ
glowworm, you don't know any Amish people.
APB, I don't believe I've ever had zeros added at the end of the total, but I certainly have met a huge number of cashiers who can't do the math to figure, say, how much change to give when I pay for a $4.50 purchase with a $5 bill. Scary but true.
As for being charged for the wrong meal--this happened recently when I was paying cash and was quite easy to sort out. Why would it be any more difficult if I was using a card?
Quovadis and Steve, I believe businesses already include theft and the costs of using cash as part of standard costs of doing business, don't see how it could be otherwise.
Patriot, where are you trying to take this discussion?-COLLAPSE
glowworm, if a place didn't accept credit cards, but they had beautiful women and free peanuts you'd be in there and you'd come out say credit cards suck.
I am happier than the Amish. They miss out on all the happiness I get from cool buttons, for example.
Less tangentially, "cash only" is a pain in the butt however I certainly understand why inexpensive places have that policy and it usually wouldn't keep me away from their doors. However, if I expected to spend more than $50 at a place and they don't take plastic I would strongly consider just...+READ
I am happier than the Amish. They miss out on all the happiness I get from cool buttons, for example.
Less tangentially, "cash only" is a pain in the butt however I certainly understand why inexpensive places have that policy and it usually wouldn't keep me away from their doors. However, if I expected to spend more than $50 at a place and they don't take plastic I would strongly consider just going someplace else.-COLLAPSE
If they go to a cashless society it could cost them big time. If I shingle your roof and you cut my grass or I rebuild your motor and you paint my car. No the government doesn't want this. The bankers wouldn't loan money to Germany in 1933, so Hitler just bartered with countries. Money only makes the bankers have power over us. What did a good steak dinner cost in 1900 maybe 50 cents. Today it's...+READ
If they go to a cashless society it could cost them big time. If I shingle your roof and you cut my grass or I rebuild your motor and you paint my car. No the government doesn't want this. The bankers wouldn't loan money to Germany in 1933, so Hitler just bartered with countries. Money only makes the bankers have power over us. What did a good steak dinner cost in 1900 maybe 50 cents. Today it's $30. If someone had a resurant and they gave you meals for doing work. Yeah let's go back to bartering. No late fees. No overdrafts. No interest and we are happy and the bakers cry.
If you think about it it's what the Amish do. They build each other's barns and I bet the Amish are a lot happier than we are.-COLLAPSE
Lost in this discussion is the transaction costs to the restaurant of relying on cash. Being all cash requires:
1) extra record keeping to track income, with increased error
2) physically moving around cash, whether by armored truck or a special run to the bank, it isn't electronically deposited
3) physically protecting cash, on premises and while on the way to the bank
4) implicitly trusting...+READ
Lost in this discussion is the transaction costs to the restaurant of relying on cash. Being all cash requires:
1) extra record keeping to track income, with increased error
2) physically moving around cash, whether by armored truck or a special run to the bank, it isn't electronically deposited
3) physically protecting cash, on premises and while on the way to the bank
4) implicitly trusting employees not to embezzle
5) in many situations, longer transaction times while customers fish out money, staff counts, records, and makes change, and customers receive change
Personally, if at a store I try to pay cash for anything under $20, at a restaurant anything under $60. Not only is it polite, but it also saves everyone money long-term, because abuse of credit cards for small purchases by a few drives up prices for all.-COLLAPSE
Cash-only is really common here in NY, and I just don't have a problem with it. Every small business owner I've worked for has had a lot of problems with credit card companies, and not only because of the fees. Technical difficulties (communication and equipment issues, slow transactions due to network overload) can hold up an entire restaurantful of transactions. I've never met a server or...+READ
Cash-only is really common here in NY, and I just don't have a problem with it. Every small business owner I've worked for has had a lot of problems with credit card companies, and not only because of the fees. Technical difficulties (communication and equipment issues, slow transactions due to network overload) can hold up an entire restaurantful of transactions. I've never met a server or employee who finds credit cards easier to deal with - they simply take longer to deal with than cash.
Something nobody's mentioned: credit card machines make mistakes really easy - charging your card for someone else's dinner or accidentally adding a zero to the end of your total - and because of the way some cards hold onto funds, even when the erroneous transaction is voided, the consumer can end up with the original amount of money unavailable for up to a month. If this is your debit card, and a restaurant accidentally charges you $500 rather than $50, imagine how that could affect your monthly cashflow.
I can't understand how anyone can justify tipping less because a restaurant doesn't take credit cards, when that's not your server's decision, and you chose to eat at the restaurant - that's just horrible, selfish logic.-COLLAPSE
While it is up to the restaurateurs' discretion on what they except as payment, a smart businessman will spend the extra money in fees and offer their clientele the easiest way to pay. Why would you want to turn away business?
I would severely reduce or eliminate the tip too if I am required to pay in cash; not to mention I might skip dessert or something because of this. I get 5% back on restaurants so eliminating this has to be compensated somehow. So I think management that only accepts cash is only hurting its employees and the overall profitability of the restaurant. If I'm just roaming around a city looking for a...+READ
I would severely reduce or eliminate the tip too if I am required to pay in cash; not to mention I might skip dessert or something because of this. I get 5% back on restaurants so eliminating this has to be compensated somehow. So I think management that only accepts cash is only hurting its employees and the overall profitability of the restaurant. If I'm just roaming around a city looking for a place to eat and I saw a cash only restaurant, I'd find somewhere else.
Its the same thing with gas stations. These stations that offer a cash discount will have to offer quite a significantly better price to persuade me to go there. Right now, I'd say that a cash accepting station has to be $.08 under anywhere else or the credit price has to be the cheapest around. Otherwise, its not worth it for me to go to the station.
What I feel about the processing fees the companies charge? Well, it takes employees' time to process cash, and generally credit transactions take a lot less time and a lot less trouble. It takes time to balance an employee's drawer at the end of the day. Plus, the less opportunity for crooks to rob you has to be considered. The crooks will not rob your CC receipts that you collect. They want the cash. In the case of gas stations that are usually busy, it improves pump turnover so its definitely worth it to accept CCs there (as I've seen stations with all the pumps full with a line for them and people running back and forth to prepay and get their change (with all the gas stations around, I'd rather go elsewhere)) and you can keep the station open 24/7 and only require customers to use the pay at the pump credit and debit cards during the night where it would be unprofitable to keep an employee on duty.-COLLAPSE
Hey, how about the card companies charge the transaction fees automatically, as they do for cash advances and that sort of thing. That would take the onus off the merchant, who could then cheerfully take your credit purchase of Dentyne without being dinged for it. Just a "modest proposal".
Costco has an Amex card that gives you a rebate at the end of the year. That rebate comes out of their...+READ
Hey, how about the card companies charge the transaction fees automatically, as they do for cash advances and that sort of thing. That would take the onus off the merchant, who could then cheerfully take your credit purchase of Dentyne without being dinged for it. Just a "modest proposal".
Costco has an Amex card that gives you a rebate at the end of the year. That rebate comes out of their profit, so they must know what they're doing. No benefit to paying cash or with a debit card, on price at least. As long as you don't run a balance and pay interest, of course. You just have to be adult about your payments.
RobB, you think Bernie Madoff ran his business cash-only? So much for a cashless society being crime-free.-COLLAPSE
Thomas,
I'm guessing you didn't pay your way through college tending bar or waiting tables. :) People who think like Thomas need a thought realignment. Your server is not responsible for the policies of the establishment, nor are they responsible for the availability or lack thereof of a particular item on the menu. They are working for less than minimum wage to wait on your special little...+READ
Thomas,
I'm guessing you didn't pay your way through college tending bar or waiting tables. :) People who think like Thomas need a thought realignment. Your server is not responsible for the policies of the establishment, nor are they responsible for the availability or lack thereof of a particular item on the menu. They are working for less than minimum wage to wait on your special little selves in hopes of earning tips. Your stinginess and the 'shoot the messenger' attitude will screw them for something they didn't cause.-COLLAPSE
If a restaurant would make me pay the surcharges on a credit card, I would consider that bad service - so there goes your entire tip.
"Soon we won't have any cash. " Amen, brother, and may that day come soon! No more cash = no more underground criminal economy. A credit card may be a convenience to a customer but it's also a safety feature for the restaurant - no one's going to hold them up at gunpoint and demand they hand over their credit card receipts.
If you're worried about overspending, get a debit card and you can't...+READ
"Soon we won't have any cash. " Amen, brother, and may that day come soon! No more cash = no more underground criminal economy. A credit card may be a convenience to a customer but it's also a safety feature for the restaurant - no one's going to hold them up at gunpoint and demand they hand over their credit card receipts.
If you're worried about overspending, get a debit card and you can't spend what you don't have.
And what's that about people who do service work getting paid in cash? My haircutter gets paid by credit card. My house cleaners get paid by check. Even most taxi drivers here now take credit cards. The only reason I carry cash is for the occasional Luddite establishment that won't take cards, or for small purchases - and even those are moving to credit cards in places like airports, where you can buy low $ amount fast food or sundries with a quick swipe of the card, no signature needed. Easier than cash, and faster too! That can't go universal too soon for my liking.-COLLAPSE
saacnmama.
Really?
It seems that controlling your spending should be a personal responsibilty, not a financial burden on the the business people who try to serve you.
And again, before everyone goes off on "the cost of doing business" and how they should just add theffes onto the price of the product.. why should other consumers who are capable of controlling their own finances responsibly...+READ
saacnmama.
Really?
It seems that controlling your spending should be a personal responsibilty, not a financial burden on the the business people who try to serve you.
And again, before everyone goes off on "the cost of doing business" and how they should just add theffes onto the price of the product.. why should other consumers who are capable of controlling their own finances responsibly be surcharged for people who apparently aren't mature enough to handle money?-COLLAPSE
Since a credit card is a convenience to the customer I would charge them 5% more for credit card charges and let them cover the extra cost to the restaurant. The credit card companies only want people to pay late and overdraft so they can make billions more. Nobody should be able to get more than one credit card unless they make a certain amount of money. The boys that handle the diamonds deal in...+READ
Since a credit card is a convenience to the customer I would charge them 5% more for credit card charges and let them cover the extra cost to the restaurant. The credit card companies only want people to pay late and overdraft so they can make billions more. Nobody should be able to get more than one credit card unless they make a certain amount of money. The boys that handle the diamonds deal in cash. People who do service work get paid in cash. Soon we won't have any cash. Many people have their checks sent to the bank and they charge or pay in checks and they don't see cash. I like to see cash.-COLLAPSE
Frankly, I think cash-only is a very classy move by establishments but not every place can pull it off. The converse is the tackiness of having an ATM up by the hostess or not taking American Express.
The "I use plastic to control spending and don't carry cash because it disappears" is a poor argument when in reality the opposite is true. Unless you can see every transaction in real time as...+READ
Frankly, I think cash-only is a very classy move by establishments but not every place can pull it off. The converse is the tackiness of having an ATM up by the hostess or not taking American Express.
The "I use plastic to control spending and don't carry cash because it disappears" is a poor argument when in reality the opposite is true. Unless you can see every transaction in real time as they happen, a card is a license to overextend yourself. Carry cash, simple as that. When you don't have any more cash in your wallet then STOP SPENDING.-COLLAPSE
Gee, I've been caught without cash at no-credit places twice in recent months and felt grateful when they allowed me to scamper out to a machine. In one instance I was lucky enough to know of a machine just 2 blocks away (in the sunshine). Had I realized it was my right to pay with plastic, I would've adjusted my attitude.
Seriously though, I will defend the practice of using plastic when ever...+READ
Gee, I've been caught without cash at no-credit places twice in recent months and felt grateful when they allowed me to scamper out to a machine. In one instance I was lucky enough to know of a machine just 2 blocks away (in the sunshine). Had I realized it was my right to pay with plastic, I would've adjusted my attitude.
Seriously though, I will defend the practice of using plastic when ever possible, even for small transactions. Money leaks out of my wallet, and I don't mean by loss or theft. It's easy for me to go through $100 of walking around money, but I can't afford $400 or $500 of unaccounted expenditures every month. Having a statement that shows clearly what I spend where (although not what I spent it on) helps rein in spending. I don't know of any restaurants that turn off the lights to save money; this is just another cost of doing business.-COLLAPSE
quovadis,
It's been a while since I've been at it. I totally forgot about the suggestive selling aspect. Yep. The wine would stay in the cellar otherwise. (or the after dinner drinks, etc.) Our markup on the wine was like 100% or more over cost. You need those kind of margins to help pay for the broken dishes and spoilage. :)
In some restaurants, the cash-only policy is more about the dining experience than fees and credit card companies. You want the old skool New York deli/steakhouse experience, you pay with old skool greenbacks.
Absolutely, Tinka.
I think a business that has a pp average of more than $10 is shooting itself in the foot not accepting cc.
Lets face it, every business does well by the occassional "impulse buy". If a guest came with enough cash for what they usually get then notices you have a great special ap or dessert they are unlikely to go to a cash machine in the middle of dinner to go get more...+READ
Absolutely, Tinka.
I think a business that has a pp average of more than $10 is shooting itself in the foot not accepting cc.
Lets face it, every business does well by the occassional "impulse buy". If a guest came with enough cash for what they usually get then notices you have a great special ap or dessert they are unlikely to go to a cash machine in the middle of dinner to go get more cash. They are likely to either forgo the extra dish or even worse, buy the dish with what would have been the server's tip.
If you're a higher end dining place and cash only people are less likely to splurge on an expensive wine.
My only point on here is that people should be reasonable.
Maybe I'm getting too old now but when I was a teenager and started going out my mother always told me to "never go out without enough cash to get you home from where you're going, make an emergency phone call & to buy a meal if you get stranded somewhere".-COLLAPSE
You are exactly right in your last post quovadis.
For the slice of pizza, I can agree with you. Debit card or not, that is silly. For the steakhouse, however, not so much. When you are running a fine dining establishment with plate costs at $15-20 per plate or more, credit card processing unfortunately is a necessary cost of doing business IMHO.
I should add that the only reason I take credit cards at my place is as a courtesy to my waitress.
People like to punish the servers for things beyond their control.
You know who you are and shame on you :P
Using a credirt card to pay for small change items like $1.50 pizza slice is just a jerk thing to do, especially when you mention reporting them to the credit card companies if they list a minimum.
When you charge on $1.50 between the 20-24 cent transaction fee, other monthly and quarterly fees and the percentage the business has now made no money off of feeding you.
Shame on you. And by...+READ
Using a credirt card to pay for small change items like $1.50 pizza slice is just a jerk thing to do, especially when you mention reporting them to the credit card companies if they list a minimum.
When you charge on $1.50 between the 20-24 cent transaction fee, other monthly and quarterly fees and the percentage the business has now made no money off of feeding you.
Shame on you. And by the way.. the practice is not "illegal" it is not "law" it is an agreement w/ a third party yes but not a criminal offense.
As to just charging more to deal with the costs
1)why should people who use their cards sensibly suffer for people that run around charging 50cent cokes?
2)thats how the credit card companies make a win-win. you charge more for the item they get more because there is both a flat fee AND and percentage taken out.
While it may be against the cardholders agreement to charge a minimum or charge a swipe fee they certainly have the right to refuse service. As in.. really... you want to charge a 25cent pack of gum that I'm going to get charged 23cents to run your card?..sorry don't need your business...
Business owners are not the "villains" here.
Every perk, every free airline mile, every cash back you get from the credit card company is paid for by the business you use your card at.
Not every business is a Cheesecake Factory.
The places that have these policies and that you are talking about reporting to get them fined are generally small family owned ventures that are as hit by the economy right now (or more so) as everybody else. That 23cents times 200 with an additional 2-4 percent of the gross + about 20-40dollars a month in additonal fees adds up for a place serving you a $1.50 slice of pizza.
Seriously, have you ever thought of treating people as you would like to be treated?
Use your credit card by all means. But don't be an asshole about it.-COLLAPSE
I always look for a visa/mastercard logo in the window if I'm hoping to pay via credit card. Or I ask the host/hostess. And typically, since I look up restaurants before I go anyway, I look for telltale signs on the website or review site that the establishment is cash only.
Honestly, I do expect restaurants with mains at $20+ to accept cards, but I also take it upon myself to know what I'm...+READ
I always look for a visa/mastercard logo in the window if I'm hoping to pay via credit card. Or I ask the host/hostess. And typically, since I look up restaurants before I go anyway, I look for telltale signs on the website or review site that the establishment is cash only.
Honestly, I do expect restaurants with mains at $20+ to accept cards, but I also take it upon myself to know what I'm getting into. Whether a restaurant does or does not take cards isn't really an issue for me. And if they don't, I consider it my responsibility to go get some cash, even if that means walking a few blocks once I discover the issue.-COLLAPSE
As a former waitress, I think the policy is beyond tacky for higher end restaurants. Don't want to absorb the 2-4% Mr./Ms. Restaurantuer? Then adjust your menu prices if you must. Two parties end up suffering when this policy is in place and not adequately advertised - your customers and your waitstaff. Not only does the waitstaff bear the brunt of the argument for the proprietor's policy in most...+READ
As a former waitress, I think the policy is beyond tacky for higher end restaurants. Don't want to absorb the 2-4% Mr./Ms. Restaurantuer? Then adjust your menu prices if you must. Two parties end up suffering when this policy is in place and not adequately advertised - your customers and your waitstaff. Not only does the waitstaff bear the brunt of the argument for the proprietor's policy in most cases, their tips will also end up suffering.
I run an appraisal business and have chosen not to accept credit cards for other reasons -chargeback potential when borrowers don't like my value, but I've done the job properly. Were it not for the chargeback issue, I'd probably accept credit cards despite the fees that do tend to add up.-COLLAPSE
What I find terrible is that some restaurants esp the pizza slice ones many will have a hand written sign staying $1.50 to use credit cards.
Even though this goes against the Visa vendor policy,they expect people will not bother to call Visa and complain.
Now in my city taxi drivers all claim the city said they could add a $1.50 "service charge" if you pay by visa.
That is illegal also, and...+READ
What I find terrible is that some restaurants esp the pizza slice ones many will have a hand written sign staying $1.50 to use credit cards.
Even though this goes against the Visa vendor policy,they expect people will not bother to call Visa and complain.
Now in my city taxi drivers all claim the city said they could add a $1.50 "service charge" if you pay by visa.
That is illegal also, and if you call and complain to Visa they will give you your $1.50 back and fine the vendor (in this case the taxi company...which is quite big).
My beef with this is that this so called "processing fee" does not even show up on the receipt.
I have also seen some stores and restaurants around here that are now posting signs stating that a minimum amount must be purchased to pay by Visa. Kind of annoying sometimes.-COLLAPSE
Not necessarily, Akitist. I actually don't owe anybody anything, but cash has a way of slipping through my fingers when I have it on me so I prefer to use a debit (not credit) card, I manage my money better that way.
No problem going and getting some cash before I eat, but I'd SURE want to know ahead of time if I was going to eat at a cash-only restaurant, especially if they didn't have an ATM...+READ
Not necessarily, Akitist. I actually don't owe anybody anything, but cash has a way of slipping through my fingers when I have it on me so I prefer to use a debit (not credit) card, I manage my money better that way.
No problem going and getting some cash before I eat, but I'd SURE want to know ahead of time if I was going to eat at a cash-only restaurant, especially if they didn't have an ATM on the premesis.
If you're going to go against custom (and really, cards are the custom these days whether you like the idea or not) you had better make sure the customers know about it- before they're seated.-COLLAPSE
Given today's trend toward cashless it would seem that the establishment would make a cash-only policy clear up-front, to avoid this unpleasantness. Which wouldn't stop people from ignoring or not noticing, of course.
The "put everything on a card" mentality has a lot to do with the current state of the national economy, with consumers waist-deep in high-APR credit card debt.
I used to own my own business, and I agree that the credit card companies basically penalize you severely if you're a smaller establishment in terms of percentages and machine fees. I found that people spent more if they could use their cards, and many people carry cards and a very small amount of pocket money and hate using atm's because of fees, I am one of those many people. I bit the bullet,...+READ
I used to own my own business, and I agree that the credit card companies basically penalize you severely if you're a smaller establishment in terms of percentages and machine fees. I found that people spent more if they could use their cards, and many people carry cards and a very small amount of pocket money and hate using atm's because of fees, I am one of those many people. I bit the bullet, forked over a considerable chunk to the credit card companie, because I couldn't afford to lose the business. Establishments should make cash only policies loud and clear, it make a big difference and it is unfair to expect customers to be thrilled with the inconvenience so a restaurant can make more money, which is what it boils down to. In this day and age to not accept at least visa/mc is an extreme inconvenience, and the policy is backward thinking and bad business imho.-COLLAPSE
quovadis, Chowhound posts have a two-hour edit window. CHOW comments are not editable.
Deborah from CHOW
"2-3% is negligible" is a ridiculous statement. Average restaurant margins are 5%...if you take 2-3% off of that you're left with half the profit you had before. I agree that it's a pain to have to carry cash in this day and age but have the common sense to check the door for credit card signs and ask the waiter before ordering if they aren't there.
sorry about all the typos in the above post.. when did Chowhound get rid of the edit post function?
"You are overstating the cost and hassle of accepting credit cards. Credit card vendors have made the process ridiculously simple, and the 2-3% fee is negligible"
sbp, your statement is simply not factual.
Merchant processing services and cc companies charge variable rates and they smaller your business the more they charge.
Also the rates vary by card with AMEX being the most...+READ
"You are overstating the cost and hassle of accepting credit cards. Credit card vendors have made the process ridiculously simple, and the 2-3% fee is negligible"
sbp, your statement is simply not factual.
Merchant processing services and cc companies charge variable rates and they smaller your business the more they charge.
Also the rates vary by card with AMEX being the most outrageously expensive, then visa and matercard will be more expensive is they rewards cards as opposed to regular
I pay 23 cents for each card swipes PLUS between 3-4% of my gross sales. Also rental on the processing unit. While some would say it is cheaper to puchase the unit it really isn't in the long run because periodically companies will declare you unit obsolete and you will be forced to purchase yet another one whereas if you rent they switch you out.
A larger place will have a lower percentage and swipe fee and the total gross percentage paid for cc service per month will also vary by which cards are most frequently used at a business.-COLLAPSE
Because I rarely carry cash, I make sure to check for the Visa sticker on the door and I ask if I don't see it. Also, a block is a really short distance to walk.
In New York there are cash-only restaurants, and there are few of them that are that far from an ATM. "A block away in the fog" doesn't seem like anything worth worrying about for most people, and for those who can't walk a block in the fog easily, I suppose, there are alternatives, like writing down the patron's ID information and waiting for a check in the mail.
Also, a "Cash Only" sign in the window is a security risk - .it is like an advertisement for thieves.
That kind of information is better placed on the menu, or even better, disclosed over the phone when reservations are being made.
I've been to plenty of cash-only restaurants (including Aurora) and generally find that the best way to advertise this is on the menu. Make it prominent but classy. That way, someone can run out to the ATM right after ordering and be back before appetizers.
However, I don't think all restaurants should be able to get away with being cash-only. I think BY FAR the worst transgressor in this...+READ
I've been to plenty of cash-only restaurants (including Aurora) and generally find that the best way to advertise this is on the menu. Make it prominent but classy. That way, someone can run out to the ATM right after ordering and be back before appetizers.
However, I don't think all restaurants should be able to get away with being cash-only. I think BY FAR the worst transgressor in this category is Peter Luger's Steakhouse. I'm sorry, when per person cost is start to hover around $100, it is absolutely ludicrous not to take credit cards. And no, Luger's, your own "charge card" doesn't cut it.-COLLAPSE
"the restaurant has no choice but to accept your promise to return with cash"
The restaurants I've worked at (they have all taken cards, but in the case of a decline) we would keep their ID until they return. Most people wont 'fess up when you forget to charge them for a drink, you really can't expect them to come back to pay a tab, sadly. So, I don't think anyone should be offended when they do...+READ
"the restaurant has no choice but to accept your promise to return with cash"
The restaurants I've worked at (they have all taken cards, but in the case of a decline) we would keep their ID until they return. Most people wont 'fess up when you forget to charge them for a drink, you really can't expect them to come back to pay a tab, sadly. So, I don't think anyone should be offended when they do ask for some kind of collateral. In any other business, they wouldn't let you walk off with their unpaid merchandise.-COLLAPSE
You are overstating the cost and hassle of accepting credit cards. Credit card vendors have made the process ridiculously simple, and the 2-3% fee is negligible. If you're talking about a pizza joint that is cash only for a slice, I get it. But full service restaurants that you can have a meal for $20 don't exist anymore. I prefer not to carry hundreds of dollars of cash on me. Any place that...+READ
You are overstating the cost and hassle of accepting credit cards. Credit card vendors have made the process ridiculously simple, and the 2-3% fee is negligible. If you're talking about a pizza joint that is cash only for a slice, I get it. But full service restaurants that you can have a meal for $20 don't exist anymore. I prefer not to carry hundreds of dollars of cash on me. Any place that expects a per table charge of more than $50 should take credit cards.-COLLAPSE
That is upper-end entitlement. Can you imagine a group of diners assumed to be "poorer" getting away with that?
What annoys me is places that actually don't accept money!
"the restaurant has no choice but to accept your promise to return with cash"
wow, good luck on that one, restaurateurs!!
I usually look for the "interac" or visa/mastercard/amex sign in the window. If it isn't there, it usually means it's cash only.