Why do merchants not give discounts for cash purchases?

Answer 1

Because people with credit cards spend more! Frequently you can go to a small local hardware or owner operated business and receive a discount. You must deal directly with the owner.

Answer 2

Why should they? They get paid either way, so how does it make sense for them to give a discount for one form of payment over another?

Many companies actually prefer payment by check/money order or credit card, because then they don't have to worry about losing much in the event of a robbery or employees being tempted to pocket a few bucks here and there.

Also, many places like car dealerships and whatnot, make quite a bit of money from financing, and it hurts their bottom line when someone pays cash.

Answer 3

I think you are wrong somewhere. Merchants loves to give discounts on cash as they hardly need to pay any duty to the Govt. But if you dont collect the Money Receipt. If you collect the Money receipt and pay by cash then the profit margin gets lower therefore they'll not give you any discounts.

Answer 4

Some still do, although there has been a lot of pressure from the credit card companies not to. While you look at it as a discount for a cash purchase, the credit card companies look at it as a surcharge for using a credit card, which they frown upon.