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Comment by electricEmu | Hacker News Reader

I live in Seattle. I bring cash for cash-only businesses.

In my experience, cash-only stores still exist. Stores that like cash are very frequent.

There's a lot of hand writing about cash users being subsidized by other customers. If it were that significant, we'd expect to see a lot of stores only accept credit card and compete with other stores. They would just be losing a few percentage points of revenue from transaction fees...

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Cash-only stores certainly exist. I can’t remember the last time I’ve seen one in the US. I think I ate at a hole-in-the-wall cash-only restaurant in DC a couple of years ago.

Nice attempt to turn my phrasing onto me, but I’m not actually claiming that cash users are being unfairly subsidized. Rather, I’m arguing that cash also costs, and the difference between cash and card (whichever way it goes) evidently isn’t all that important.

Just because it's minor doesn't mean it's nonexistent. I think it's fair to say that cash subsidizes cards, and the other cards subsidize AmEx. Stores should be free to pass on the transaction fee, it's not fair that processors can hide it.

My apologies. I did misunderstand that.

I don't necessarily agree, but it's an interesting thought. I've never considered the cash overhead before.

I've encountered several cash-only restaurants over the years. Some in NYC and even a few in my area. The local one that stands out in my mind is a combination of the restaurant being extremely good and reasonably priced, so there's always a long waiting line. There's also the "cash discount", which my dry cleaner offers. And I can't tell you how many house contractors will charge less (sometimes substantially less) if you pay them in cash.

Don’t know about NYC, in other places (eg. Italy) cash payment is attractive to the stores because it can remain hidden to taxation. Restaurants particularly like cash because of two reasons: 1. Food is perishable, it’s easier to justify discrepancies between food bought and revenue. 2. They often pay workers under the table.

I once naively asked why so many ice-cream vans were based in the UK council housing estate where I grew up.

It was pointed it out that it was the perfect tax-free income mechanism; no vendor certification or registration, no fixed property, minimal ingredients, cash transactions...

I have been to cash only bars (think neighbourhood pub), donut, and pizza shops in the bay area this year. there are plenty still.

> I can’t remember the last time I’ve seen one in the US

Confused... I've been all over the US and every city has tons of cash-only stores. Especially smaller cities and towns. It wouldn't surprise me if half of the independent delis in the US are cash only. I'm guessing you live and spend most time in a suburb?

I am in a suburb, but I spend spent of time (and credit card money) in urban and rural areas.

In fact, most of the Chinese take-out restaurants still prefer cash payments than cards; for the rare ones that do take cards, they require a minimum charge of $10-$15.

Amazon doesn't take cash, they seem to be crushing everyone else.

I've always assumed cash-only businesses are up to something mildly shady, like tax evasion (local example, Paseo).

Also, I've encountered a couple card-only businesses lately (local example, Optimism Brewing).

Paseo is an immigrant restaurant in a very expensive neighborhood.

I'm not sure they would be able to stay open if 2-5% was cut off their revenue. It's just money; not a conspiracy.

Often cash only stores where I live like cash because they don't report it on their taxes.

There are a bunch of card only cafes in a kind of gentrifying neighborhood by me.

Its not uncommon to encounter credit card only merchants in my experience.

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