augiedog wrote:But doesn't it cost money for larger businesses to have Brinks trucks moving money? Cash needs to protected in vaults, and extra security is needed to safeguard those vaults and store cashiers. Making change with coins also has its own transaction cost.
Pennies are also frustrating. The US Mint pays more to distribute pennies than their actual value. Then when people receive pennies they throw them away or let them sit in a jar.
Last time I did a study for a client, their cost of handling cash was less than 1%. That was for a (at the time) cash-only restaurant and bar. That cost included all costs we could reasonably allocate to it, including counting it, shipping it, employee theft, robberies, etc. The only form of payment that was cheaper was checks. They had some business accounts on net 30, they had a pretty high cost of collections.
The business owner couldn't get any of the acceptance companies to actually back up any of their claims about higher average spend, higher recurring spend, lower actual costs, etc, with either data or a guarantee.
That was several years ago, and 'not carrying cash' is a bigger reason to avoid places these days, but I doubt the cost of handling cash have changed that much.