Community Chat

[geezerette]

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@MamaWick wrote:

@geezerette  Yep, pretty much. Several years ago, passing along the 3-5% credit card fee was unheard of, was the cost of doing business, and everyone paid the same whether paying by cash or credit.  I think we all should pay the same.

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@MamaWick 

Interesting.  Thank you for responding. 👍

I prefer the disclosure myself.

🤷‍♀️

[Twins Mom]

@beach-mom 

That's crazy!  And super frustrating.  Good you were on top of it and bank is cooperating

[RedTop]

I wasn't aware of this being a local issue until yesterday when my husband picked up our supper order from a local diner, and said he got a 5% discount.  I figured it was a military discount, but he said it was for paying cash.  

[JillyMarie]

Here is what I don't get about the cash discount.  Suppose a restaurant charges 5% surcharge for credit card pymts and give cash payers a 5% discount.

Credit Card

$100 + 5% = $105

$100 goes to restaurant and $5 goes to credit card company

Cash

$100 - 5% = $95

$95 goes to restaurant

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What is the incentive for the restaurant to give a discount to cash payers?  What am I missing?

Also, wanted to add, be sure you have trust in who you give a check.  There is a lot of information on that check.  Name, address, account number, routing number, etc.

[chiclets]

Anyone can take a photo of your check and all your info is on that check.

[VanSleepy]

@JillyMarie from what I understood,  the discount for using cash is when the credit card fee is included in the base price. So everyone is charged $105 and those paying cash would get the 5% off of $105.

[ALRATIBA]

I get points on my credit card ... so I use it for almost everything.  

[JillyMarie]

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@VanSleepy wrote:

@JillyMarie from what I understood,  the discount for using cash is when the credit card fee is included in the base price. So everyone is charged $105 and those paying cash would get the 5% off of $105.

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Oh, ok.  Now I get it.  Seems a bit convoluted doesn't it.  I guess you need to be aware of the restaurant's policy as it would be easy for a less than honest wait person to pocket the discount.

[THEY CallMe Mr Wilkes]

I've never been to a "cash discount" restaurant.   If that was an option I would definitely consider using cash.

My experience is "credit card surcharge" or not.

[Twins Mom]

@JillyMarie 

I would tip based on before fee amount.  I also notice some restaurants give a suggested tip in the after tax amount. I base my tip.on before tax amount .