How come most Chinese restaurants are CASH ONLY??

Question

No racial responses intended

Answer 1

#1 The restaurant have to pay the credit card companies for each transaction.

#2 If customer pays with a stolen credit card, usually the credit card company will charge the restaurant the cost and say that the restaurant should have checked to see if the credit card was stolen.

So since menu items are usually around 4-9 US Dollars, it's bad business when the credit card company takes a portion of that per transaction. Credit cards are only worth it if the product is expensive, say $50+ because consumers are less apt to carry hundreds of dollars with them, but it's not unreasonable to expect a customer to have $10 on them.

This is a problem that every small business faces. If you go to a national chain like Panda Express, they'll have credit card machines because it's a big corporation and can afford it, not a small mom and pop business which probably can't.

Answer 2

I never saw that. Most Chinese restaurants that I have been to take credit cards. I do see some small take out Chinese restaurants have such signs that say Cash Only but it's no different than other small non-Chinese mom & pop take out restaurant.

Answer 3

It's because most Chinese business owners are extremely shrewd...often times even more so than Jewish business owners. It isn't racist, it's simply how they are. They don't want to pay the transaction fees, which are usually about 3%. Sometimes they will accept cards if the total is over a certain amount. They also don't want to deal with bounced checks, so almost none take them. I prefer paying for things with cash anyway, so to me it isn't a big deal.

Answer 4

Ask Yourself this question: Would I trust Me to pay for My meal with a credit card?
Chinese business people have a good grasp of economics and commerce. By trading in a cash only environment They are able to cut down on Their financial institution overheads. 5% over each transaction adds up over a period of time.
Think about it for a minute. It makes sense.

Answer 5

Most Chinese restaurants that I eat at take credit cards.


I have noticed, however, that most of the ones in my area if you DO pay cash, they simply hit "No Sale" on the register and stuck your money in the drawer (including the sales tax) and make change. They don't actually punch the sale in to the register...I hate to be pesamistic, but I am going to go ahead and make the assumption that they are not reporting all their sales...This in itself I don't mind so much, but if I am correct, it does bother me that they are charging me tax and not actually reporting it and paying it to the government.

Answer 6

i'm wondering where your chinese restaurants are located, as i can think of 7 right off the top of my head, and they all accept visa because i've used them there.
do you live in a small town or a rural area? maybe they are new to the business and can't afford to offer credit. i think they pay for each transaction when they are a small business. that's why some places don't let you charge under ten bucks.
anyway...........hope that helps a little!


easter blessings!!!

Answer 7

Ah so, Chinese man velly savvy. He know dat bank charge 2 to 5% for credit card. Not like bank. Better customer pay cash and have more food than make bank rich.

Answer 8

Because they don't like to spend ANY extra money paying a CC company for using the equipment or whatever they charge for...man they are some CHEAP folks...and they are always LOADED with money...maybe that's why!

Answer 9

They are afraid of checks being bounced because when they get bounced you dont get the $ and you have to pay an extra $30 where i come from....

Answer 10

1. having the card system increases overhead
2. so they dont have to truthfully report their profits