[tjlivesey]

Cash can actually be fairly expensive for businesses to handle. It needs to be insured, transported and often banks will charge fees for depositing cash into a business bank account. Depending on the specific circumstances, it can actually be as, if not more, expensive to process than cards.

[schnable]

Plus the additional exposure to risk of robbery or theft by employees. Unless the objective to hide income, businesses not taking cards is typically penny wise and pound foolish.

[coldpie]

And yet, my local liquor store gives a 1% discount if you use cash (no, this doesn't violate the CC merchant agreement), a local diner doesn't even accept credit/debit cards, and the owner of another restaurant immediately went for cash when I asked if they cared. I don't buy it.

[tjlivesey]

I'd venture a guess that that the liquor store and the restaurant do this for "accounting purposes" and the diner is living in the 80s. As I say though, I'm sure it varies based on specific situations, my experience is based on working with small business owners based in the UK.