Does the store lower the price if you charge cash instead of paying with your credit card?

Question

Stores have to pay the credit card company a percentage of everything sold around 2-5%. I know that they also add 2-5% to your charge so they dont lose money. So im wandering if i ask to charge cash instead of paying with my credit card can i get that percent taken off?

Answer 1

For many stores the amount is lower in the 1.5-3% of the bill. But unfortunately this also includes the taxes that the store pays to the gov't.

Yes some stores actually do have a different price for cash rather than credit cards. Usually they have a sign or such stating that the prices are cash discounted and so if paying by a credit card they add on 3% to cover the credit charges.

note that not all jurisditions will allow for this type of pricing so it is the same for either payment method.

There are those stores though that do allow you to pay cash and no taxes. What is called an-under-the-table sale. These are not supposed to be done (classed as illegal sales in many places). Some stores that have a good markup can do it and not only still make money but do so paying the taxes out of the lower amount.

Have fun hunting lower prices.

Answer 2

When I bought my living room furniture, we received a 10% discount for paying with cash. However, I think this was a special case because the store was changing ownership and the old owners were trying to avoid receivables----they wanted cash in the bank before the new owners took over.

There are a few places that will offer a little off for a cash purchase but usually on big purchases, not small every day items.

Answer 3

Generally not - their agreements with the credit card companies will usually not let them charge a different price to cash buyers.

Answer 4

Nice try. I'm sure they're counting on that extra 2-5% from their cash customers.

Answer 5

at a small local store...sometimes....big chain store, no way unless they are offering the promotion