How would it benefit an American business to accept Pesos?

Question

It seems a pizza place in the Southwest accepts Pesos for pizza. They are on American soil, and pay American taxes, so why would they want to accept the less valuable Peso? And-can anyone tell me if there is a tax form to claim foreign currency taken in?

Answer 1

The objective is to increase business and show good will. One of the businesses in question also charges a small fee. Irregardless if it drives more business to the company then they have reached their objective. I don't believe there is a particular form for foreign currency taken in, but you could have a problem with your bank if they have a limit on the amount of foreign currency they will accept, especially if they are not a commercial bank.

Answer 2

The stores that accept the pesos are doing so basically because many of their customers visit Mexico on a regular basis. Instead of using a bank to exchange money, or if you just happened to have some left over, you could use pesos. We happen to have probably $20 in Canadian left from our trip years ago. If Mazzio's decided to take it, we'd probably use it, even though we nearly always get pizza hut.

It's a publicity stunt, little more. And just because they except pesos doesn't mean that if the pizza was $10 US that they'd take ten pesos, I am certain that they would use pesos to equal the cash value of the food, and then just exchange the pesos for dollars later when deposited.

Answer 3

Which peso of what country? I am from Argentina originally and as long as the dollar is more than a peso why not take a dollar. The current exchange rate for the Argentine peso is 3 for 1 dollar. Given the instability of South American markets, I want my money in dollars. the same goes for any investment, that's why people put their money in gold or silver or real estate. Currency will eventually fade out. As far as American tax laws, call the IRS.

Answer 4

The place is Pizza Patron based in Dallas, TX. The reason they take pesos is because most of their customers are Hispanics. The pizza place is not the only American company taking Mexican pesos in US soil. Wal-Mart, HEB, K-Mart, and other do it as well. The move is nothing more than a strategy to get more customer, and some free advertisement. I am Mexican; however, I will not go and pay with pesos. Nevertheless, it does not bother me. It is simple. If you don't like it, then, do not pay pesos. It is a great business strategy.

Answer 5

as long as they are accepting a fair exchange rate they should be ok, and if they wanted to make money they could even charge more in pesos than the fair exchange rate and make more money. banks will exchange foreign money for us dollars. Fridays exchange rate was 10.93 pesos per us dollar meaning that if a pizza costs 12 us dollars if u wanted to pay in pesos it would cost 131.16 pesos. and u could charge more by just saying you are doing them a favor by accepting the pesos, get it? other countries do this all the time to American tourists in their countries, that is why you should always exchange some of your money at a reputable bank and pay in the local currency.

Answer 6

if they are close to the border, or have mexican employees they might be able to pay in pesos, that may be the reason. And I am sure there is a tax form for foreign currency, since there is also another common one, candian money which is also worth less than the American dollar.

Answer 7

The foreign currency is converted to American money, and taxes are paid in American dollars. If the recipient of foreign currency has need to pay in foreign currency this is a way to make a profit on the exchange rates.

Answer 8

How can anyone respond to this. This is America not Mexico if you value the Peso more than the dollar go live in Mexico