Some restaurants stop taking credit cards to avoid interchange fees
In an effort to help avoid the exorbitant fees credit card companies charge every time a business processes a transaction that results in credit card debt for consumers, many restaurants in New York are now fighting back the only way they can.
According to a report in the New York Post, a number of popular eateries around New York City have stopped accepting any payments by debit or credit card. Many feel that they have been giving a healthy percentage of their revenues to issuers for too long, and that’s cutting into their profits. One restaurant owner told the paper that he has given about 5 percent of his gross sales to these companies for years.
However, the report said that some customers have been frustrated by the restaurants’ new policies, despite the fact that many have installed ATMs to help diners cope with the new policies. But some aren’t buying.
“It’s a trade-off between what you save and who you lose in terms of customers,” one cash-only restaurant owner told the paper.
Many consumers are leaving these restaurants because they prefer the convenience of paying by credit card over carrying cash.