Can shops legally refuse money.

[TheDoctor]

I run a small business as a sole trader, and I hate taking cash.
My local bank branch doesn't handle cash, so I need to go to a Post Office.
The nearest one is two miles away and always has a long queue.
I haven't even had a card payment in nearly a year - I used Zettle, which charges a flat 1.75% and the card reader was £20 IIRC. All my customers are fairly frequent, so I do everything by bank transfer.

 

[classic33]

Yes, but the money in the back pocket means it doesn't get taxed!

If it's put through the till, then it'll show. You can perform a similar "trick" with a card machine, you simply lower the price. Lower not discount it.

Both methods of payment are open to abuse, and both just as easy as the other to do.

 

[oldwheels]

I would suggest that’s a little outdated. Busy Shops can get 1.5% and I would imagine a group such as coop would be <0.5%

True I am not up to date and the percentage taken does depend on turnover so large stores or groups get lower rates.
The Arts Centre I mentioned was a new business so there were no sales figures available but not very encouraging.

 

[markemark]

True I am not up to date and the percentage taken does depend on turnover so large stores or groups get lower rates.
The Arts Centre I mentioned was a new business so there were no sales figures available but not very encouraging.

The catch 22 here is that if the smaller stores reduced their minimum charge, they’d take more sales through the card machine and then able to negotiate a batter rate from the merchants.

 

[oldwheels]

The catch 22 here is that if the smaller stores reduced their minimum charge, they’d take more sales through the card machine and then able to negotiate a batter rate from the merchants.

I did just that and got our rate down. Trouble was they slyly put it back up again as soon as they thought I would not notice.

 

[Chromatic]

I was in a pub a while ago and when I payed I asked do you want cash or card, the barman said either, it didn't matter, I asked then about card fees and he said they don't pay any. This was one of the big nationwide restaurant/pub chains.

 

[markemark]

I was in a pub a while ago and when I payed I asked do you want cash or card, the barman said either, it didn't matter, I asked then about card fees and he said they don't pay any. This was one of the big nationwide restaurant/pub chains.

They will do. But they’ll also most likely pay the bank to pay in cash. And cash has security issues, theft liabilities and these days it’s hard to find a bank where you can pay in cash for a business account so that takes resources to solve.

 

[Pat "5mph"]

I run a small business as a sole trader, and I hate taking cash.
My local bank branch doesn't handle cash, so I need to go to a Post Office.
The nearest one is two miles away and always has a long queue.
I haven't even had a card payment in nearly a year - I used Zettle, which charges a flat 1.75% and the card reader was £20 IIRC. All my customers are fairly frequent, so I do everything by bank transfer.

I have been paying trades persons by bank transfer for years, even my compost supplier is happy with this payment method.
Once I had to arrange a common repair for our building: I found a local tradesman on Google, I hired him on What'sUp, I paid by bank transfer after seeing the finished job when I got back from work.
Never even seen the guy, but I was pleased with the easiness of the transaction.

 

[Flick of the Elbow]

I only use cash by exception. I use digital for practically everything.

 

[classic33]

I used cash earlier this week, as they only accepted contactless card payments. Chip and Pin wasn't available.

My cards have a £10 contactless limit, agreed with the bank, following the theft of my cards a few years ago.

 

[scragend]

If it's put through the till, then it'll show. You can perform a similar "trick" with a card machine, you simply lower the price. Lower not discount it.

Both methods of payment are open to abuse, and both just as easy as the other to do.

I think the idea with money in the back pocket is that the sale doesn't get put through the till!

 

[classic33]

I think the idea with money in the back pocket is that the sale doesn't get put through the till!

Paying by card how do you know it's being paid into the till. Especially with the readers you can now by from high street shops.

 

[Alex321]

Paying by card how do you know it's being paid into the till. Especially with the readers you can now by from high street shops.

Well in most shops, the reader is linked to the till. With the ones where the machine is separate, and the amount has to be entered into the machine itself, you don't. But there is a record of the transaction, which inherently makes it that little bit harder to hide it if you get audited.

 

[markemark]

Well in most shops, the reader is linked to the till. With the ones where the machine is separate, and the amount has to be entered into the machine itself, you don't. But there is a record of the transaction, which inherently makes it that little bit harder to hide it if you get audited.

....unless the staff member gets their own card reading terminal attached to their phone which is cheap and easy to get. Only CCTV or stock taking would notice.

 

[Slick]

Paying by card how do you know it's being paid into the till. Especially with the readers you can now by from high street shops.

Lots of options for the creative fiddler.