Couple small places neat me are cash only operations. I don’t know why but in 2023 to be cash only seems a little suspect to me. Any legitimate reason?
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Tax man or other debts
Laundering
Conspiracy theorist
Old and/or immigrant mentality
…these are the main reasons.
Avoiding paying taxes is probably what’s going on. Everything is probably under the table.
We are a cash only business to the public.
The processing fees don’t mean anything to me, it’s just a cost of doing business.
The reason we don’t take card is because the individuals we provide services for can be iffy; the type to always complain about pricing, and file disputes just to get stuff for free.
We do however take card for other businesses in our industry. They make up 80% of our sales. But regular consumers in the industry we’re in are usually not trustworthy; most of the businesses we work with agree. It has a lot to do with the area we’re in, but either way we’ve just never seen a reason to accept card because even if we lost all card paying individuals, that would be 20% at the most but realistically more like 2% of people who refuse to pay cash.
Sounds like a sketchy industry 😆
The real reason businesses do cash only is to avoid paying sales, state, and federal income tax. Between those 3, that’s around a 30%-50% savings depending on your states sales tax, state income tax bracket, and federal tax bracket.
Many businesses get nailed for tax evasion not by the IRS, but by state sales tax audits.
Credit card fees are really inconsequential relative to the tax savings of not reporting cash sales.
Reducing one’s tax bill