[jakub_g]

In Poland, the default way for computer shops in 2000-2010s was to offer 2% discount when paying in cash. (The prices displayed were assuming cash, so if you paid by card, you'd pay more.)

I didn't see this anywhere else though. It probably made sense for computer shops because most transactions one would do there would be sporadic, big, and planned.

(Since then, the Mastercard/Visa fees went down to 0.2-0.3% due to EU rules, so probably those discounts are less popular now).

[BeetleB]

> I didn't see this anywhere else though.

In the US offering different prices when paying by cash vs card was a violation of the agreement with Visa, as is putting a minimum price threshold for card usage.

It's still fairly widespread though, and occasionally makes the news. Might explain why you didn't see it often.

[jkaplowitz]

I believe the Visa merchant agreement never forbade cash discounts, only credit card surcharges. I'm not sure, but the current rules are different due to a legal settlement.

In the US, not only does Visa now allow cash discounts and minimum price thresholds up to US$10, but they also allow, in most states, credit card surcharges (sometimes subject to specific state-law legal requirements).

Visa still officially disallows minimum price thresholds outside the US and certain related territories like Guam, and credit card surcharges outside the US - but I nevertheless see them plenty often here in Germany in small shops. I think the permission to offer cash discounts is global.

[mrastro]

Do gas stations have a special deal with the card processors then? Basically all of them have a lower cash price.

[drstewart]

>In Poland, the default way for computer shops in 2000-2010s was to offer 2% discount when paying in cash

Yes, being able to illegally evade taxes is an easy way for businesses to lower prices slightly.

[Wytwwww]

And how would that work accounting wise? Would they just claim that a bunch of PCs "fall off" a truck?

I'm not sure subjecting everyone to poorly regulated (even in the EU it's fair from ideal) monopolies/oligopolies that are legally entitled to literally tax every single transaction in the economy (in addition to the complete loss anonymity and all the implications of that) is not a too high price to pay for some reduction in tax fraud...

[com]

“Shrinkage” is the generic term I have heard for stock losses of all kinds in retail and distribution channels.

In many jurisdictions, cash payments can allow the retailer to avoid on-paying sales tax or VAT, as well as mark stock shrinkage as a loss for their own tax purposes.

Countering this would require very careful auditing of electronic toll records and paper receipt processes, which are in most cases trivial to evade if well-prepared.

And you can’t always be sure that the shrinkage - without the cash - is reported to the manager of the retailer by the person on the till, especially if an unofficial handwritten receipt is provided by the cashier.

I recall seeing a situation involving a very large champagne purchase on New Year’s Eve in cash for 25% off and a “till receipt problem”.