Opinion: Let’s Respect the Decisions of Merchants Displaying the “Cash Only, Please” Signs

Should you run to the ATM before shopping? If you want to help the merchant save money, you might. 

Although I am a huge advocate for wise and robust credit use, I’ve gone back to paper currency for many regular purchases. Once a week, I withdraw a small stack of $20 bills and dole them out on everything from meals to shampoo. Not only have I become a more conscientious shopper, making that money last as long as possible has become a fun challenge. 

But shoppers like me aren’t alone in wanting to avoid using plastic for everything. In fact, you may have noticed that certain merchants have also returned to cash. 

Small business owners have to contend with a wide variety of factors that make doing business more expensive. That includes the fees associated with accepting credit cards. Merchants pay card processors to accept payments through them, and when they operate on very slim margins, the pinch can hurt. For this reason, a business may request that you pay in cash instead. It saves them money, and in turn it can save you money. 

So when your hair stylist asks you to pay in cash and you don’t have any on hand, should you run out and find the closest ATM? In general, I say yes. 

The average swipe fees merchants pay through Visa and Mastercard transactions is 2.26% of the charge. So, if your masseuse charged $200 for a delightful 90-minute session and you paid with your card, that professional had to pay around $4.52 for the transactions. 

That may not sound like a lot to you, but for an independent small business owner who is trying to keep the lights on, it adds up, fast. According to the National Retail Federation, credit card swipe fees are most retailers’ highest operating cost after labor.

Accepting cards is important for businesses, but it can be a double-edged sword — and one that is getting a little sharper this year. 

In January 2025, Visa raised some of its credit card swipe fees. The Merchants Payments Coalition, an advocacy group supported by restaurant, retail, and other trade organizations, estimates that the fee hike alone will add up to an additional $100 million in annual fees.

That’s why, some small merchants are trying to sidestep that cost and are asking customers to pay in cash instead. Even if they don’t, chances are they’ll be glad if you offer. They may include artists, independent cafés, food trucks, small retail stores, pop-up shops, hair and nail salons, aestheticians, spas, farmers market sellers, and dry cleaners.  

In general, I’m more than happy to abide by the “cash only, please” request. There is no law that says they can’t ask, nor do they have to accept credit cards. So if it helps them stay in business, great. 

It also can help shoppers. When a merchant’s expenses rise, they typically have to pass that cost on to the consumer with higher prices. In some states they can add the fee to your bill. 

Because I’ve already become accustomed to withdrawing cash and paying for things as I go along, now I also plan ahead for bigger purchases, such as haircuts. Before I go, I stop at the bank and withdraw what I need for this service. 

Still, there are times when I do want to use my card, and as long as the merchant takes it graciously, we’re all good. A sale is a sale, and there’s nothing wrong with using your credit card. This is especially true if you need some time to pay, you want the protection of consumer laws, or are building rewards. Or maybe you just don’t feel comfortable with holding on to a large amount of cash. That makes sense, too, since if it’s lost or stolen it’s usually gone forever. 

Oh, and make sure you get that receipt. It’s not just for personal spending tracking. If you need to return an item or have problems with the service, you won’t have that electronic record to prove you made the purchase. 

To note, I am also seeing merchants requesting payments through an app. I would be a little more cautious about this. Everything should be above board. 

For example, I recently wanted to buy a pair of earrings from a designer who sells her jewelry on Instagram. When I asked her about the process, she wrote back with some interesting terms: “Venmo only. Write no words, use emojis instead. Absolutely do not indicate that I was buying goods or services.” 

Why? I can guess. It’s to not only avoid the swipe fee, but possibly income taxes as well. Businesses are required to report sales received through payment apps as income, but transactions that appear to be person-to-person money moving can be a way to hide those sales. 

My advice is to avoid anything remotely illegal. Helping a merchant save on swipe fees can be kind, but cheating on taxes — whether you’re an individual or a small business owner — is a very bad idea. 

Using cash is something consumers can do to help out a struggling small business, but retailers of all sizes may receive relief from the federal government. 

If Congress passes the Credit Card Competition Act (an amendment to the Electronic Fund Transfer Act), the largest card issuers would have to enable a second network to route transactions. The potential net effect of increasing competition would be less expensive swipe fees.