Card machines have become necessary for business, especially in the post-Covid cash-strapped world. But for some, the transaction fees involved in paying with a card mean additional costs. With businesses facing skyrocketing energy bills as the cost of living crisis continues, some are urging customers to do their part to keep costs down.

A Welsh pub has asked its customers to use as much cash as possible to reduce the cost of card transactions. The Horseshoe Inn in Llangattok launched an appeal on social media asking its guests if they would consider paying cash to improve cash flow and minimize transaction fees.

A sign posted on the pub’s Facebook page read: “Would you consider paying cash? What you might not know is that small businesses pay high fees to banks and credit card companies to process credit card transactions. Credit card transactions also have a negative effect on cash flow. Will you help independent companies keep prices low and consider paying cash?”

The boys hide out in a pub for lunch at school after no one applies for the chef job.

So thought Jess Jenkins, who runs the pub with her parents Andrew and Sue. Jess decided she wanted to check in at the pub, but first went online to see if they had done this before. After finding the photo, Jess says that she wanted to bring attention to an important matter.

“You just can’t believe how much money we’re getting compared to three years ago,” Jess told WalesOnline. “It’s nothing. When we used to withdraw money, you had to be careful. You had to go straight to the bank. But now I feel out of touch [payments] It just completely took over.”

While it’s easy to accept card payments from customers, it’s not free for businesses, and processing the payment incurs a fee that must be paid to vendors. “We have card fees, I don’t remember the exact percentage, but it’s very expensive,” said Jess. “So obviously not having cash in the till when people walk in is like a domino effect.”

Jes, 33, says if more people paid cash it could make a “huge difference” for smaller businesses. “I’ve worked in bars all my life and the owners have always taken cash. I think business is booming because of that because they don’t pay interest on the cards.” Since the card was put up, Jess says people have started paying cash “a little bit more,” adding that people tend to use cash they received as a Christmas present.

He added that if companies missed out on cash payments, these would be “unsettling times”. She said, “We’ve had meetings where we’re just trying to get by because everything is going somewhere else and we can’t see any of it.” Jess’s parents bought the pub around 2016 and restored it before it opened in 2017.

In addition to these transaction fees, Jess says it has become more expensive to do business due to skyrocketing energy bills. “Last month our electricity bills were almost £3,000, in just one month,” he said. There are other ways in which Jess says the pub has lost due to cost. When rugby or football is played, people flock to their venue to watch the big game. However, Autumn Internationals was shown on Amazon Prime last year.

“We couldn’t show it in the pub because we couldn’t afford BT, Sky and Amazon. We took big losses in November because of that,” he said. With times being tough for many people, Jess says companies can sometimes find themselves in a ‘catch 22’ situation.

“We have to fill beer orders every week, so the less money we get, the less beer we can buy,” he said. “Having to cut the heat and also cut employee wages is a struggle, it’s just a huge ripple effect on everything. We don’t want to annoy customers by raising beer prices, but we have to survive as a business.

“The older generation, when money is tight, it’s like a trap situation where they want to drink, but it’s so expensive that they can’t afford it because the cost of living at home has gone up, it’s hard.”

As heating has become expensive for many, Jess says he has noticed that people come to the bar just to warm up. “I noticed that the older generation comes, some arrive and spend hours in front of the radiator or the fire. It makes you think.”

While Jess recognizes that card transactions are quick and easy for customers, she encourages people to use cash as much as possible. In the face of rising costs, Jess says that while the pub doesn’t want to raise drink prices, independent businesses need to do this to survive.

“You have a negative reaction, which is negative for us and can be upsetting. You go into big chains like Wetherspoons and you never complain about beer prices because it’s such a big deal. Small businesses tend to suffer the most. than the big ones, which is sad,” he said.

Welsh pubs have announced closures due to the cost of living crisis, while others struggle to find ways to stay afloat. In one of Cardiff’s pubs, instead of turning on the lights, they used candles and Christmas decorations.

Source: Wales Online