QuestionsGeneral-MiscWhy do some places insist on cash only ?
Traditional-Aside-93 asked 7 months ago

Examples include , let’s say - Cinema halls, paying for gas cylinders , chatime bubble tea, etc. Explain to me in layman’s terms .

Traditional-Aside-93 answered 7 months ago

It really has to be cash too. Not even juice which I assume would have zero bank charges, etc. not only is it inconvenient, but surely it is hindering our progress as a society.

_DEATH_STR0KE_ answered 7 months ago

MONEY LAUNDERING

Escanor1365 answered 7 months ago

Because it is fun

Extra_Speaker9083 answered 7 months ago

Probably some companies operating with very low margins, so they don’t want the bank to cut the card usage charge.

If they are collecting cash for other people (example gas cylinders does not belong to the filing station), then it could make it easier to keep that cash separate from the business cash.

Cash collected when paying by card is not remitted on the same day in the bank account so could be an issue for some people.

Others may not be agreeable to all the terms set by the bank. Or the bank may not be satisfied with a business to give it the machine.

Illustrious_Date8697 answered 7 months ago

Well, one possible reason could be tax evasion. Its easy to remove a paper trail of cash as opposed to card transactions when reporting earnings.

Im not convinced that the small fee imposed by banks is a real reason especially if it conveniences your clients and ultimately drives up business.

I recently visited Mauritius when I was getting married and got so accustomed to paying by GPay that a trip to the ATM discouraged me from going certain places

Katen1023 answered 7 months ago

Because you have to pay the bank a commission to use the debit card reader. They want to avoid that fee.

They may also want to avoid paying taxes. Cash is not retraceable like card or juice payments.

cumtrafficant answered 7 months ago

There are 2 major reasons

1. They make small margins:

When you accept payment by cards at a your store, (as a business) you are entitled to a merchant fee charged by the bank
(usually a purcentage on every sales made through card machines) sometimes it also added with a fixed amount. Which are not great if you already make small margins (This rule also applies to Mobile/ Digital payments) Juice, Myt money…

2. Illegal purposes:

It can ever be a money laundering business or they want to hide some income…
When you are accepting cash, nobody can really knows if the money really comes from legit clients or if you made the real amount that you are declaring.

Suncourse answered 7 months ago

Card companies charge retailers for every transaction

Brooklyn7011 answered 7 months ago

I personally think it’s a good thing there are shops that insist on cash only. Cash means freedom and as much as people like to point out, that it’s all to avoid taxes and do shady stuff, if it’s the only way “the little guy” can compete with large international corporations and banks choking them out, I’m all fine with it.

Freedom surpasses petty consumption needs in my eyes.

DreaddKnight answered 7 months ago

Because they can. So why not?

Few_Award6146 answered 7 months ago

No trace. They delete the invoice once you leave so they dont have to pay taxes on revenue/profit. And so they can claim vat back from govt. On the purchases they made.

E invoicing will make it hard to do this.

Le_denicheur answered 7 months ago

Cause when we pay cash our bank account does not decrease. So it literally means it was free.

JonJonSee answered 7 months ago

money laundering

When you see Gbay cinema being so empty all the time…

MrPekko answered 7 months ago

Probably money laundering. Ain’t no way a Taiwanese global franchise business like Chatime is still relying on cash system. Either they want to maximize their profit margin or avoid paying surcharged of tax and bank fee. As for Cinema Halls, I don’t know, they also are dodgy as heck and for gas cylinders, this is probably a way to just not pay the bank fee.

pavit answered 7 months ago

1. Controlled margins like on gas cylinders which have a fixed sale price… so resellers don’t use bank’s POS system due to bank margins on same…

2. Certain gas cylinder resellers do accept juice/bank transfers but no pos…

3. Simply tax evasion, you cannot really quantify turnover when doing cash only transactions… there’s no traceability… like for cinema halls…

4. Then you have high volume small margins like Chatime… having POS is too much headache and accounting overhead for them… + reduced margins if using pos…

jeanbond780 answered 7 months ago

It pisses me off to the highest level every time I think about it. In freaking 2023, a company doesn’t take payments made by card NOR by digital payments.

I believe that if a company doesn’t accept card but accept digital payments; they are doing tax evasion.

But if a company doesn’t accept cards nor accept digital payments; they are doing money laundering, IMO.

The government should come up with a law enforcing digital payments for every registered business.

Traditional-Aside-93 answered 7 months ago

Hope the Digital Rupee will become a thing soon, with all this advanced fin tech we already have established there is really no need to be working with physical cash any more

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <br> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <hr> <i> <img src=""> <li> <ol> <p> <pre> <q cite=""> <s> <strike> <strong> <u> <ul>

Your Answer

  • Login/Register

  • Categories

  • Recent Answers

  • Mauritius Facts

    The sugarcane plantations in Mauritius were originally worked upon mostly by slaves. After the abolition of slavery in 1835, the British brought over more than half a million labourers from India, whose descendants form the largest community in Mauritius today.
  • ×

    Contact Business

    Captcha Code