If you pay cash, the restaurant doesn’t have to pay that processing fee. I’d rather they keep the money than have to pay the bank to get it.
Right. Restaurants accept credit cards for the convenience of their customers. I’m sure every restaurant would generally prefer to deal with cash and not pay the fees, but I’ve heard that some major national chains prefer credit cards because it helps minimize problems with employee theft.
Although I’ve seen studies which show that people spending via credit card spend more than those paying cash. So the restaurant may end up selling more drinks or coffee and dessert to patrons who are paying via credit. Which would then make up for the credit processing fees they have to pay.
Another issue is that handling cash has its own costs of doing business. Someone has to count the cash, lock it in the safe, be responsible for it, make sure someone goes to the bank on Monday to deposit it, etc.
And if everyone paid cash, prices might actually drop and the employers might be able to hire more people for better service.