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Why do merchants not give discounts for cash purchases?

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2008-05-22 14:02:38
2008-05-22 14:02:38

A few traders will in fact give a cash discount, but don't expect it to be great as the credit-card companies only charge the trader about 3% commission anyway. Any significant cash discount is more likely to mean that the trader has no intention of putting the sale "through the books", but in that case don't expect a receipt! Another point to bear in mind is that if the trader is one of the many high-street stores advertising "interest-free credit" it is actually illegal to give a discount for cash or any other type of immediate payment, as to do so would imply that the full price DOES indeed include an element of interest, and so cannot be properly described as "interest-free". Retailers price the item as a single, cash sale basis. That is the expectation and anything else takes the adjustment. They make additional money on credit sales when they are the ones extending the credit. (Essentially, credit is another product). The incentive of making more sales (that is product and credit), may infact motivate a lower combined price. (Many companies, expecially consumer retailers, make more on the credit they charge on their own cards/accounts than they do on the product they sell). Sales on credit cards issued by others (Visa, MasterCard) are generally at the cash price, (although the retailer pays a fee to the credit card company who takes the risk and costs and effort of providing the credit, essentially to facilitate this sale). Finally, in non retail, more trade situations, discounts for cash, (actually fast payment, normally check), say within 10 days of the billing are very, very common. Many of these bills are sent on a "2% discount if paid in 10 days, total due in 30 days" called 2/10 N30 billing. Very common. That a company takes the discount offered is a sign of good financial management and ability.

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Related Questions


can you give some example if cash discounts?


detrmined to give Churchill the destroyers, Roosevelt ased aloophole in the provision of the Neutraly Act that required cash for purchases.


Businesses that like to hide part of their revenue from the Tax Man (IRS). If you pay by debit/credit card or cheque every thing is tracable. Taking payments in cash also helps keep banking costs down. Hence it is mostly small businesses that give cash discounts to encourage you to pay them in cash enabling them to control costs and avoid small amounts of tax. Additionally, gas stations are notorious for offering cash discounts.


The use of cash discounts can help with cash-flow and reduce the cost of transactions in terms of banking fees. This is perfectly acceptable unless designed to attract payments in cash which will not be reflected in the accounts of the business as this would amount to tax evasion depending on your location in the world.


Delta offers discounts for seniors on flights but they are not available for online purchases. You would have to give them a call to see what the discount is.


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Yes they do. I bet you will not find any data to back this up online however. I worked in a dealership for six years, and saw people get anywhere from 3 to 5 percent discounts for paying cash.


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If you want to limit your web shopping, you can just make purchases for the products that you need mostly. Ignore the products that you don't require from your shopping list. Using coupons can give more discounts on your purchases, therefore you there will be a chance for you to get more savings on your purchases. You can limit your shopping budget but not the orders just with the use of online coupons.


Does Boscov'sgive senior discounts


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To give the user a discount on a priced item or service. Coupons are the different types of promotions and discounts that are offered by the merchants and manufacturers. By using coupons customers can get discounts on the items they buy and able to save some extra money. You too can enjoy savings by using coupons and promo codes. See the link below thanks


whenever businessman permits less payment than actual one to the buyer whatever benefit buyer is getting is called discount at the time of purchase or at the time of payment. discounts are of two type trade discount and cash discount. when buyer purchases the product in huge quantity seller gives trade discount and on credit sale seller instruct buyer if buyer will pay the amount within time limt permited by seller he will give cash discount.


Senior citizens generally do not get discounts on airfare. Airlines do not give discounts on the basis of age, and primarily only offer discounts for off season / off peak travel times.


HEB because of the discounts. Hope that helps. They are not discounts they are papers that give u money off actually discounts on paper


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- Allows you to buy things even if you don't have cash at the moment, which is good provided you're sure you can pay for it later within the interest-free credit period (usually upto 50 days).- Gives you reward points or even cash discounts on several categories of purchases and payments. The same payment, if made via cash or debit card, may not give you the same benefit. So you are effectively paying less, while not even paying from your pocket at the moment! Your money stays that much longer with you!- Reward points can be redeemed for a variety of gifts, gift vouchers or frequent flyer miles.


The Hilton hotel offers last-minute booking discounts and other discounts as well. You could also try the Holiday Inn or any other chain hotel as usually these have frequent guest discounts.



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