Why Cash Matters for Small Businesses and Consumers
Cash is more than just money—it’s a tool that empowers you and strengthens your community. In a world of digital payments, choosing cash makes a real difference for local businesses and consumers alike. Here’s why you should carry and use cash more often.
Why Cash Is Better for Small Businesses
Using cash directly supports small businesses in your community. Here’s how:
Saves Money: Unlike credit card payments, which come with processing fees of 2-6% per transaction, cash transactions cost businesses nothing. Every dollar you pay in cash goes straight to their bottom line.
Boost Local Economy: Cash payments keep more money circulating in your community, helping small businesses thrive and create jobs.
Example: 4% of a million dollars “GROSS” in the local economy equates to $40,000 going to complete strangers operating credit cards and banks. Most economies gross more than a million dollars annually.
Builds Connections: Paying with cash often leads to personal interactions, like chatting with the owner or leaving a tip, fostering stronger community ties.
Encourages Fair Pricing: Without card fees eating into profits, businesses can keep prices lower or invest in better products and services.
Example: How Credit Card Fees Hurt a Small Bakery
Imagine you visit a local bakery and buy a $50 order of pastries using a credit card. Here’s how that impacts the bakery’s bottom line:
Single Transaction: The credit card company charges a 2.5% processing fee, which is $1.25 ($50 × 0.025). The bakery only receives $48.75 from your purchase.
Daily Impact: If the bakery processes 20 similar $50 credit card transactions in a day, that’s 20 × $1.25 = $25 in fees, leaving them with $975 instead of $1,000.
Yearly Total: If the bakery operates 6 days a week for 50 weeks a year, those daily fees add up: $25 × 6 × 50 = $7,500 in credit card fees annually. That’s $7,500 they could have used for new ovens, hiring staff, or lowering prices.
If you pay with cash for that $50 order, the bakery keeps the full $50. Every cash payment helps them avoid these fees, ensuring more money stays in their hands to grow their business and serve the community.
By choosing cash, you’re helping small businesses keep their doors open, make improvemens, grow stronger, hire more employees, and provde raises.
Benefits for You, the Consumer
Control Your Spending: Cash helps you see exactly what you’re spending, making it easier to stick to a budget and avoid debt.
No Fees: Pay with cash and skip transaction fees, bank charges, or interest rates—what you spend is what you pay.
Accepted Everywhere: From street vendors to small cafes, cash works almost anywhere, so you’re never left stranded.
Protect Your Privacy: Cash keeps your purchases private, free from tracking by banks or corporations.
Ready for Emergencies: When digital systems fail due to outages or glitches, cash keeps you prepared.
Make Cash Your Choice
Using cash is a win-win: it gives you control over your finances and supports the heart of your community—small businesses. It’s a simple act with a big impact. Start today: pay with cash at your neighborhood coffee shop, farmers’ market, or corner store. Together, we can keep cash alive and our communities thriving.