Hello, Green Witch (is that a city in Connecticut///
Why do you think it costs a small business more to take a credit card than to take cash or a personal check?
If you go into Moonene's Famous Cupcake Bakery and buy $22.16 worth of cupcakes (which in New York City is FOUR cupcakes) and you pay with a credit card, here's what happens:
The card is swiped through the reader.
The transaction is noted.\
At the end of the business day, the account is totaled, reconciled and (this is the important part) CREDITED to Moonene's bank account. The transaction charge on this is about 2% or maybe 50 cents.
If you pay by check, Moonene has to verify with a check guarantee system that the check is good (because it is over $20.00) then physically write down on a deposit slip the amount~ $22.16~ and carry it to the bank and deposit it. It is usually credited the day after deposit but not always. If, by some chance, you are a piker and don't have the $22.16 in your account when the check is presented, Moonene is hit with an NSF charge just like you will be.
(What do you think it will cost to collect both the $22.16 and the $20.00 NSF fee from you? The moon? Yes. So, she will contact the guarantee service and make them pay both fees. That usually happens after about 30 days. If the check wasn't guaranteed, there isn't any sense chasing after the $22.16 and the $20.00 NSF fee, it will cost more in time than the forty something dollars.)
How about cash, that has to be cheaper than credit cards, right?
Cashiers can give you back the wrong change. Two Twenties can stick together or maybe the cashier just palms the second one and sticks it in her bra and the register is $20 short at the end of the day. <shrug>
But nevermind that: just handling the cash costs cash.
You have to count all the cash at the end of the day. All of it.
Bundle it into your deposit, write down what the deposit is and then, walk down to the bank with the deposit and WAIT in line to deposit the cash.
while you are there you have to pick up some change: rolls of pennies, nickles, dimes and quarters///a couple hundred in ONES and a couple hundred in FIVES. Then walk back down the street, and RE-count all the change to make sure that the registers start off right in the morning.
Did I mention that about twice a month the bank calls and says you took in a fake One Hundred Dollar Bill?
They do, because the Cupcake place is the perfect place to dump some dough, busy on Sunday morning and the kids they have working there are making $8.85 an hour. They don't look at hundred dollar bills.
So, if I was running a small business I would ONLY take credit or debit cards, no cash///no checks////
and it would be so simple to close at night and I would NEVER have to actually go to a bank.
Joe(can you tell I have had some retail experience?)Nation