Quoted from mbaumle:
Huh, I guess I'm in the minority here then. I much prefer to not use cash. In fact, I can't remember the last time I had paper money in my pocket, much less coinage. We went to a small hole in the wall pizza joint near me the other day that was cash only. Drove me nuts, and I can't help but think they're doing it to dodge taxes. They just lease a small ATM machine with an absurd surcharge. So in a pinch, you're still swiping your card, and paying more for it.
The issue with non cash/check transactions is that the card companies "debit and credit" are making money off of every single transaction. How do you think card companies offer all of their usage programs? It's not out of the goodness of their hearts, the more you use your cards the more money they make.
It's not a small amount either, there is both a transaction fee and a percentage that gets charged to the business for each transaction. If someone carries a balance on their card the card companies are making money on both ends of the sale.
So the business has a few options
1. Only take cash.
2. Take cards and eat the cost.
3. Raise prices across the board to cover transaction fees.
4. Pass the transaction fees on to customers who use cards.
IMO a business shouldn't have to fund discoveries cash back program.