Merchants can now give cash discounts

[schildi]

According to the Money Magazine, new federal rules are in effect since last fall that allow merchants to give discounts to customers who pay cash instead of with CC's.

This was new to me. If I'd know that I get a say 3% discount, I would maybe switch to cash in many situations. 3% would beat the 2% cash back I get when paying with credit. There is still the convenience and safety factor of using the plastic though. What do you guys (those who mainly use plastic) think? Would 3% discount be enough for you to switch to cash?

[bobbysgirl]

During the months that I get less cash back, yes. During 5% cash back months, no.

[DVM gone riding]

yes for somethings, like if when I got my car fixed they had offered a cash/check discount I would have done it. No for everyday things.

[Sum Dum Gai]

For 3% all the time, yeah I'd start carrying cash. I have yet to see a sign anywhere saying the store offers a cash discount though. Well, other than certain gas stations that have always done so.

[dancinmama]

May 15, 2011 21:30:28 GMT -5 @bobbysgirl said:

During the months that I get less cash back, yes. During 5% cash back months, no.

I agree.

[sapphire12]

I would probably switch to cash for a 3% discount. However, I don't see the major retailers offering a cash discount. I think this rule will mainly affect small retailers.

[Deleted]

What will happen is cash will be the new old price and +3% will be the new CC price.

[alabamagal]

My husband offers cash/check discounts to established businesses on large orders (usually $500 or more) if they pay by cash or check at the time of pickup, rather than usuing a credit card (3% fee) of putting on net 30 account. It can be up to 5%. It gets money in the bank faster with no fees. I'm not sure anyone has used cash, and we don't feel comfortable having large amount sof cash on the premises, but we are happy to tack checks

[oreo]

I don't think it would be worth the headache for me for most purchases to pay with cash over my credit card for a 1% gain. It would only be worth it on a larger purchase (Over $100 or maybe even more--I'd have to think about the amount a while). I don't want to carry a bunch of cash around. For me it is easier to lose and you get a lot of protections from using a credit card.

[mithrin]

If the gas stations that give cash discounts are any guide, 3% is an overly optimistic amount for what businesses will offer for a cash discount.

Even when I'm only getting 2% back on gas, I've yet to find a place where the cash discount price is a better deal that the 2% cash back on my card. There are a bunch of places that offer lower cash prices, but it's usually something like 4-6¢ per gallon, not per dollar. Maybe you can get a better % negotiated on particular purchases when you're spending large amounts, but I don't expect to see any places giving a universal cash discount of 2%+ (interchange fees for non-rewards cards fall below that amount, plus more cash transactions would incur overhead costs and reduce the overall savings of having customers switch to cash).

[soon2bmomof3]

Our neighborhood nail salon has a sign that is offering 10% off if you pay by cash instead of CC. Unfortunately, it was buried under the magazines at the drying station, so I already paid when I saw it. I usually tip in cash and pay for the services on CC.

[oreo]

10% would definitely be more of a motivator to pay cash than 3%. I'd definitely be willing to carry cash for a 10% discount.

[mithrin]

May 16, 2011 16:11:22 GMT -5 @soon2bmomof3 said:

Our neighborhood nail salon has a sign that is offering 10% off if you pay by cash instead of CC. Unfortunately, it was buried under the magazines at the drying station, so I already paid when I saw it. I usually tip in cash and pay for the services on CC.

10% off would definitely be enough incentive for me to pay in cash if I had it with me (and remember to bring it next time). However, I'd love to know if they would give the same 10% off if you use a check? 10% is such a big number that I'm suspicious that what is happening is not just saving on the CC interchange fee, but that they plan to save more money by taking cash payments, and then not reporting the income on their taxes.

[8 Bit WWBG]

...:::"10% is such a big number that I'm suspicious that what is happening is not just saving on the CC interchange fee, but that they plan to save more money by taking cash payments, and then not reporting the income on their taxes. ":::...

Or that their stuff is so far marked up, that 10% is negligible profit.

...:::"but sometimes if you ask you can get the discount. ":::...

More and more in this economy, I feel like every time I ask if there are any discounts, they just chuckle at me for asking such a stupid question.

I hope Macy*s starts offering a cash discount. It would be nice to actually get a discount that works for all the useless ones they advertise.