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In addition to tax-dodging, or selling off-the-books, there is one other, small legitimate reason for a vendor, to avoid card payments: Most banks/payment proc
by nousermane 4y ago
In addition to tax-dodging, or selling off-the-books, there is one other, small legitimate reason for a vendor, to avoid card payments:
Most banks/payment processors would charge a fixed amount per small transaction. Amount varies a fair bit, but as an order of magnitute, say - €0.15 or something like that. This means customer that bought cup of coffee for €1.50 and insists on paying with a card, will cost vendor whooping 10% extra (it is not allowed for vendor to pass on card transaction cost to customer).
For a larger purchase, €30, €60, and more - transaction charge is negligible, naturally.
- rchaud 4y ago> For a larger purchase, €30, €60, and more - transaction charge is negligible, naturally. This is already the case. The status quo allows vendors to refuse card payments if the total is under €30.
- zelos 4y agoCash comes with its own costs of course: from a quick google a shop paying cash into a business account pays 0.5-1% in fees. Plus issues with theft etc.
- unmole 4y agoThe government subsiding the payment infrastructure seems like a better solution. This is what India does with UPI and Rupay. Of course it's debatable if it actually lead to an increase in tax compliance.