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Comment by mikeash | Hacker News Reader

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.

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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.

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.

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.

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