We run a business here in Taiwan, and we specifically don’t take credit cards in any form. Why? Our best prices are for cash purchases, and that’s what we give our customers.
While we may win a few extra dollars from additional transactions, having that extra middleman just isn’t worth the hassle of letting someone else look after our money.
With installation fees, monthly terminal fees, fees on each transaction, and numerous penalty fees that may apply, plus the risk of the credit card company NOT paying up promptly due to chargebacks, we could actually end up out of pocket for transactions that, cash-wise, would already have been ‘settled’.
The upshot is that, for the foreseeable future, we are not likely to take credit cards, in any shape or form. If we were to, we’d likely have to increase our prices for ALL of our customers by at least 5% to cover most costs. This is not an unusual choice in many more cash-based economies, such as Taiwan’s but in the UK/USA it would be quite an unusual position for a retailer to take.
I really don’t understand why consumers think credit card spending is better. It’s not. It’s not better for you, it’s not better for me. And it’s not generally better for society. Do you know any businesses that specifically reject credit cards for purchases of goods and services? What reasons did they give?