Avoiding the CASH ONLY Business...

[Tilikum Turbo]

Here in CA, we have a lot of CASH ONLY places of business, of which I refuse to be a patron:

Getting a merchant account can be obtained by virtually anyone(even with crappy credit). Having the ability to handle credit-cards, DEBIT/ATM card actually increases sales about another 35%, and when you consider the surcharge incurred, the business still comes out ahead.

But here's the rub my friend who works for the IRS told me: the vast majority of those businesses COLLECT tax dollars, and keep that money since the transactions are off the books. They are around for 6-9 months, disappear, and then pop-up somewhere else. So you that has a legit job or business actually paying your taxes has to make up that loss.

I once went to a cash only restaurant where I asked for the itemized receipt, which they made on the fly(after charging me almost $9.00 tax for a $28 bill), and when I took it, then chased me into the parking lot...that was fun!!...2 months later, I noticed they where gone.

[Ayles]

A VERY popular restaurant in Seattle that operated as cash only suddenly closed and filed for bankruptcy just last week. Looks like they were up to no good. This place had two locations with lines around the block every day. Even in crummy Seattle weather.

http://blog.seattlepi.com/thebigblog/2014/11/13/paseo-files-for-bankruptcy-day-after-sudden-closure/#28355101=0&7298103=0

I always think it's a little shady when places are cash only.

[speeder]

While there is a lot of opportunity for tax evasion with a cash-only business, there is nothing illegal about operating one. I would not go so far as to call this a free country we live in but there are still certain freedoms remaining. It is also not difficult for a business to cheat while accepting credit cards, if they are so inclined.

A lot of these places get caught, anyways. I frequent a few places that are cash-only in L.A., one of them is Phillipe restaurant in DT L.A. It's been in continuous operation for something like 80 years, it's huge and everyone from the Mayor to the Police Chief eats there. I'd be really surprised if they've been successfully skimming all these years w/o getting caught. Maybe...but I doubt it.

It's your money and you're free to spend it where you want but you haven't convinced me.

[fastfredracing]

I love cash paying customers, and even discount a little bit for it. Not because I am trying to cheat the tax man, but because, cash never bounces, there are no extra fees added on by the credit card companies for accepting it, I dont need any extra equipment or technology to take it, l and I don't have to wait for it to clear before I can draw off it. Accepting cash, saves me money in the long run.
Have you ever looked at what the bank, and credit card companies take from a small business at the end of the month? I just paid $150.00 for new checks yesterday.
And you know what? A nice big pile of cash in my wallet at the end of the day , just makes me feel good.
I do however understand what you are saying. Some will cheat.

[widebody911]

At a place I used to work, I observed an interesting practice by the guy running the cafeteria (which was contracted to a 3rd party). When he rang you up, he entered in all of the prices, give you your total, took your money, made change, and then hit 'clear' (or whatever the button is on the POS terminal) so the transaction never registered. Just because I'm a d*ck, I would occasionally ask him for a receipt, which would piss him off because then he'd have to re-do it all and actually register the transaction. He was the 'owner' or 'manager' of the place, and was the only one I observed doing this - the other cashiers did things 'normally'

Along similar lines, I've seen people selling used parts at swap meets or even on TheSamba and collecting sales tax, and I'll bet dollars to donuts that's not getting reported to BOE.

[Rick Lee]

I've been to plenty of cash-only restaurants in CA and usually have to wait in line for a table. When they're already that successful, why bother with credit card merchant fees? To get more business they can't handle and build those merchant fees into the prices everyone else pays (it's illegal in CA to surcharge for cc use)? As was mentioned, it's super easy to hide revenue with credit cards. I had a friend who was a bartender who never charged me for more than one glass of soda and we drank as much as we wanted at that bar, while tipping him very generously. I remember going to a buddy's 21st b-day party at Chi Chi's where a large group of us drank the place into the ground and our tab was $12.

[island911]

Originally Posted by Tilikum Turbo

...my friend who works for the IRS told me: the vast majority of those businesses COLLECT tax dollars, and keep that money since the transactions are off the books. ....

yeah, that's our big problem. All of these wonderfully efficient government bureaucracies are being robbed by a few fly-by-night businesses.

Yeah, that's the ticket.... be angry about it... outrage!

[Geary]

Carrying cash is incrementally being made a crime (ask all those who have had cash stolen on the highways). So, businesses that only accept cash or barter are OK with me.

[Head416]

I don't go to cash only places because... I NEVER HAVE CASH AND IT'S 2014 GET OUT OF THE STONE AGES!!!!

[craigster59]

Originally Posted by Head416

I don't go to cash only places because... I NEVER HAVE CASH AND IT'S 2014 GET OUT OF THE STONE AGES!!!!

Good thing they had an ATM inside Phillipe's!

[Head416]

Hey, at least they understand that not everybody has cash all the time, and did something about.

(And thanks again for spotting me!)

[MikeSid]

Originally Posted by widebody911

...When he rang you up, he entered in all of the prices, give you your total, took your money, made change, and then hit 'clear' (or whatever the button is on the POS terminal) so the transaction never registered....

That's SOP in these parts. Saw it yesterday on my $1.95 purchase of beef jerky. Skimming on a <$2 transaction is a serious committment to the margin.

[GH85Carrera]

The oldest bar in the state of Oklahoma is most famous for the fried chicken.

Eischen's Bar - Home

They are a cash only place and have been that way for many many years. They have great fried chicken. No plates just a piece of wax paper, no silverware. If you ask for a fork it is plastic. The only choice is one whole chicken. Well I guess you can have all the chickens you want but if you want just a breast it will come with the rest of the chicken.

They are always packed.

A buddy of mine works for a large international company. Many managers from other plants came into town for a meeting and they all wanted a taste of the local foods. He hauled them to Eischen's and when he asked for a receipt to turn in for his expense account it was the side of a brown paper bag written with a pencil. He knew the place took only cash so he was prepared for the ticket.

[Nostril Cheese]

So TV is reality and you enjoy paying merchant charges on top of CA tax?

[id10t]

The only cash-only business I have issue with is a local bar/sandwich place (Shaun, DTW and I ate there when Shaun picked up the M491). They are cash only.... but have installed an ATM next to the register that charges $3/use PLUS whatever your bank adds on.

[RANDY P]

Originally Posted by Ayles

A VERY popular restaurant in Seattle that operated as cash only suddenly closed and filed for bankruptcy just last week. Looks like they were up to no good. This place had two locations with lines around the block every day. Even in crummy Seattle weather.

Paseo files for bankruptcy day after sudden closure - Seattle's Big Blog

I always think it's a little shady when places are cash only.

Tubs Firecracker. MMmMmmmMmmmM.

rjp

[Tobra]

Originally Posted by Rick Lee

(it's illegal in CA to surcharge for cc use)?

Yes, you can offer a discount for cash, but can't charge a fee for using a CC

I like cash paying customers. No chasing after money, no bank fees, just cash in my hand.

[Dantilla]

I usually use cash. Use credit cards very little.

Wasn't worried about the data breaches at Target, Home Depot, et al, as I only use cash for most retail purchases. The big reason? I hate getting a big credit card bill at the end of the month. It is paid in full, every month, on time. I don't want a surprise when the statement arrives.

[GH85Carrera]

That is why I use my debit card for most purchases. The payment just comes out of my checking account.

[RANDY P]

Cash is the ultimate sign of trust.

rjp