everyone in the comments misunderstood what he said they don't do it to avoid tax ( i.e commit tax fraud by say lying about how much revenue they made ) they do it to be more tax efficient without breaking the law
How much business is being lost.. derp derp.. I guess I will go to another store then to another vendor that will take my payment… Who is this sophist for?! Derp
So he's telling me if you pay them $20 they have to pay about $1 in credit card fees, and that's the reason they ask for cash. But if you pay them in cash, then they don't have to declare that $20 and they can probably save about $6 in tax. So it's mostly about cheating on tax.
I think bank fee's are rediculous. A company pays to pickup change. A company pays to deposite money A company needs to pay when a card gets swiped. A company needs to pay for an account. And yet if the bank loses your money its not their problem.
So that is bullshit for Europe at least. We have like 0.25-1.5% Fee for visa/master/Bank.
Handling money also Costs money.
Depositing Cash in the Bank Costs money.
Getting rolls of Cash for change Costs money.
Going to or picking up from the Bank Costs time which is money.
Taking Cash and giving change requires some Jobs to wash hands and get New gloves, which is either costing more time and Material, or a lot of workers just Touch my food with the unsanitary glove they just handed back change With. Seen So often
With sumup point of sale tablet with you only pay a % of the total.. example a 20 quid bill would loose 33 pence.. thats it!! Lets face it… its tax.. when covid hit these places switch to contactless asap. But aftee covid they didnt take card.. they survived covid on fewer sales and paying by card but after with more people buying and a definity consumer switch to tap and go these places suddenly cant survice based on card sale pricing.. its tax
This is why Visa and Mastercard are so afraid of Brazil's PIX. Its a sistem that lets you pay by scanning a QR code, or by imputing someone's phone number, email or some other key. And it has absolutely 0 tax
You're math is wrong, 4% on a $20 order is 20 cents plus the swipe fee of .25 which can vary. So it's between 20 and 50 cents. However I agree that the merchant shouldn't pay the bank should. Not only that but we are paying a fee on the tax we collect and need to pay but the tax collector dosen't credit us so we end up paying for tax that we didn't collect due to the fee. The system is broken and needs to be fixed.
Right, but if i see a place that's cash only, I simply won't but from there, simply because i can't be bothered to find a cash machine, i don't want to deal with the pocket change and all my spending goes on a credit card which i pay in full each month and helps me budget.
I'm sure there are many more people like that. They most certainly lose more in lost trade than a 2% charge for taxing payments by card.
Actually the laws "protecting the customers" and forcing businesses to accept also card payments without any surcharge are instead protecting the banks and the government. Cash is legal and cash is freedom.
Hey just asking, there is a channel called Finance Without Secrets which is using several of your videos in their channel. Is that a another suh channel?
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everyone in the comments misunderstood what he said
they don't do it to avoid tax ( i.e commit tax fraud by say lying about how much revenue they made )
they do it to be more tax efficient without breaking the law
How much business is being lost.. derp derp.. I guess I will go to another store then to another vendor that will take my payment… Who is this sophist for?! Derp
So he's telling me if you pay them $20 they have to pay about $1 in credit card fees, and that's the reason they ask for cash. But if you pay them in cash, then they don't have to declare that $20 and they can probably save about $6 in tax. So it's mostly about cheating on tax.
That worked 10 years ago, not now.
Years ago I saw my local Indian restaurant burning all of the food orders in the Nam bread oven at the end of the shift.
AND the tax you pay for the transaction is on the total, not on the total minus the fees
That would mean double. Not having to pay the fee and paying less tax
And restaurants will pay less fees/tax if they just stick with cash only
No its tax.
Where is this man based. England or the US. Why is he using American terminology. Is it to appeal to an American audience?
It’s to avoid tax. Let’s not pretend it’s anything else 😂
I think bank fee's are rediculous.
A company pays to pickup change.
A company pays to deposite money
A company needs to pay when a card gets swiped.
A company needs to pay for an account.
And yet if the bank loses your money its not their problem.
Money laundering
I would rather pay them cash
Definitely tax
This is completely untrue.
This is only true for the us, other country's may have different rules and fee's
I pay cash anyway I don't do cards
So that is bullshit for Europe at least. We have like 0.25-1.5% Fee for visa/master/Bank.
Handling money also Costs money.
Depositing Cash in the Bank Costs money.
Getting rolls of Cash for change Costs money.
Going to or picking up from the Bank Costs time which is money.
Taking Cash and giving change requires some Jobs to wash hands and get New gloves, which is either costing more time and Material, or a lot of workers just Touch my food with the unsanitary glove they just handed back change With. Seen So often
If money is your power what are you without it
With sumup point of sale tablet with you only pay a % of the total.. example a 20 quid bill would loose 33 pence.. thats it!! Lets face it… its tax.. when covid hit these places switch to contactless asap. But aftee covid they didnt take card.. they survived covid on fewer sales and paying by card but after with more people buying and a definity consumer switch to tap and go these places suddenly cant survice based on card sale pricing.. its tax
That must be an England thing I've never run into a dinner or fastfood that doesn't take card
This is why Visa and Mastercard are so afraid of Brazil's PIX. Its a sistem that lets you pay by scanning a QR code, or by imputing someone's phone number, email or some other key. And it has absolutely 0 tax
That's why the chippie i work at does that but they also take bank transfer
it’s defo to avoid tax fuck off. same reason why electricians, plumbers and builders have a cash price
why does he use an American currency when he's clearly English?
As if paying with cash doesn't have it's own fees.
Grateful we have Pix method of payment in Brazil
You're math is wrong, 4% on a $20 order is 20 cents plus the swipe fee of .25 which can vary. So it's between 20 and 50 cents. However I agree that the merchant shouldn't pay the bank should. Not only that but we are paying a fee on the tax we collect and need to pay but the tax collector dosen't credit us so we end up paying for tax that we didn't collect due to the fee. The system is broken and needs to be fixed.
Right, but if i see a place that's cash only, I simply won't but from there, simply because i can't be bothered to find a cash machine, i don't want to deal with the pocket change and all my spending goes on a credit card which i pay in full each month and helps me budget.
I'm sure there are many more people like that. They most certainly lose more in lost trade than a 2% charge for taxing payments by card.
Mark: 'It's about the fees.' The Government: 'We know it's about the taxes, Mark.'
No, its only because of taxes. It's actually wild in Belgium, even the most reputable restaurants will push you very, very hard to pay in cash.
Since when do we use dollars in the UK? Channel blocked
Its mainly because of tax. And i agree with them.
Why I like to pay cash is in the hope they don't pay tax.
Government is a ridiculously inefficient way to spend money.
"Pay by cash, get 5% discount"
Since when is 2-4% of 20 = 1?
Yeah 👍🏻❤
But what about holding and deposit fees
"If they charge extra to cover fees in most places that's breaking the law"
Utter nonsense.
Then there's the money laundering aspect in London.
Actually the laws "protecting the customers" and forcing businesses to accept also card payments without any surcharge are instead protecting the banks and the government. Cash is legal and cash is freedom.
Why dont you pay with QR CODE, like we do in Czechia??? 😂
Hey just asking, there is a channel called Finance Without Secrets which is using several of your videos in their channel. Is that a another suh channel?
It's in the human nature to avoid taxes.
in australia, you're only allowed to surcharge as much as the bank is gonna charge you on the on the transaction.
In America they just upcharge 4%
im pretty sure if u go back far enough there would be a video of this idiot telling u why u should use a credit card.
2-4% simply isn’t true. Most card providers if you negotiate properly are sub-1%.
WRONG….. 😂