Originally Posted by
frappant
That's right, cash-handling is a hassle for merchants.
Some small merchants faced risks taking cash deposits to the bank.
True, cash isn't free. Banks charge to process it (not sure how much). Plus being cash only or cash heavy puts you at a higher risk of robbery during business hours (potential harm to employees, customers, and property).
Going debit only is probably a good path for some merchants if the swipe fees for debit are minimal. Are swipe fees for debit the same now with or without a PIN? (At one point they were higher for no PIN transactions).
I went to an expensive restaurant ($40+ entrees) a few years ago that charged a 3.5% fee for ALL cards including debit. I didn't carry enough cash for a $100+ meal so I sucked it up (4x pts on Amex Gold, though). But if they charged for credit but not debit that would be a good compromise to piss off the fewest customers.