I sat in a Thai restaurant for a quick dinner only to discover I had to pay an extra 12 cents or something because I wanted to use my card. I never went back. It's not the 12 cents (clearly) but the fact that there was such a petty add on. It felt like I was dealing with a scrambling business.
Businesses use the notice of the extra charge at the front of their counter. It is now regulation in Victoria that you cannot be deemed to be making money from the use of a financial transaction and can only reap the cost the business occurs, so we are now flooded with little signs all over the small business world letting you know you will be charged an extra 12 (ish) cents. If a product has been priced to include all the overheads, direct and indirect costs it takes to make the product, why not include the incremental financial cost to transact the product?
Possibly to save tax dollars.
Constructing your tax-style business
Unless you are supremely savvy and able to record each cash transaction in two ledgers, one you will report and one you won't, and merge them together with your highly advanced excel skills into regular reports to determine which aspects of the business needs review and which are flourishing and need investment, I do not see the value of the saved tax dollars.
Not at the micro level.
It is wise taking the time to invest in the right tax accountant to have a relationship with an expert that gets to know how your business runs and provides PROACTIVE advice on how your internal structure should work in capturing information to take advantage of current tax write offs. This is ideal to establish as early as possible since it will feature in the regular collection of data and how that gets put together. Creating time and effort (and procedures) for tax incentives should be part of how you operate a business.
And if you can't afford a tax accountant on the get go, then the ATO offers a bunch of small business workshops for this very reason. The very nice people that do the workshops are happy to answer your questions and the workshops are held in a lot of locations around Melbourne.
The aspect of the value of your product also comes into account when determining taxes. If your agenda is to provide your highly valued product at the cheapest price you can possibly do, then avoiding tax might be part of the game plan. When you decide to have "cheap" as your modus operandi, you will inevitably invite a host of decisions that might test your ability to stay true to your original idea. Just a thought.
If you consider what you provide to be of immense value to that core group of customers that you are well versed with their desires and dreams and know you can add value to them, then the price you charge is commensurate with this ideal. People have the money to pay for things that will uplift their lives. Therefore, add in the portion of taxes you think you might be saving.
Cash flow should be flow
The nature of the customer these days is to transact quickly. For men, they prefer to not carry cash on their person (wallets in pants is not ideal, you may need a jacket to put into and carry). The idea of going to an ATM is on the list of very un-enjoyable (deserves that word) things to do in life. It requires pre-thought from the customer to prepare for the brunch when there are a million things to do before the brunch.
It's a pain in the rear. And there is no flow.
The inherent quality of cash involves labour. It requires change and banking and storing. It requires counting and balancing and watching. It does not feed into reports automatically since it requires appearing on a bank statement to be considered for bank reconciliation. Therefore your information is consistently late unless you include daily deposits as part of your workflow. That requires owning a business close to a bank. And the future of banks is not labour.
If you are a small business that operates mainly via cash because you're just getting started, I recommend using Square or Paypal because they are 3rd party options rather than having to have an account with one of the big banks in order to use their card facilities. This means you don't have to support coal export and anything else they're into just to run a business. There might be more on the market - do your research. The fees are reasonable and they give your business a professional edge as well as being mobile. Online I use Stripe via Squarespace (website host). Can you believe I even wrote a query to them and had a real live person call me back? So yeah, I'm a fan.
When I had my practise people responded really well to being able to use their card for services. They also responded well from knowing their details were captured via a system in case there was ever any discrepancy. Refunding was easier and they were able to purchase add-ons I was offering as gifts for others or booking in another session with myself because of the ease of the card. An online booking system such as Acuity (example), will also merge with Stripe to ensure the payment is captured, with no need for transaction on the day.
I cannot stress how much I feel this is an important factor to begin with as soon as you open the doors. There are no large respectable organisations that put a placard out front asking for an extra 12 cents. I believe that kind of behaviour keeps you at eye level, when I know what you want to do is fly above.
NOTE - there is no kick back for the items I've listed. This is just my personal experience and a handful of what is actually on the market. Spend the time to research.