The margins in your local “mom and pop” corner store are often so slim that your use of a credit card for a sale under say $5 ends up costing them money.
Credit cards charge businesses a “per use” charge. At certain levels of sale, it’s a “per transaction” flat rate fee, while for larger sales it’s a percentage.
That’s why I was so shocked when rotten ronnie’s started accepting plastic. They must have gotten some sweetheart of a deal.
You are correct, which is why I avoid going into the Mom and Pops stores! They cut off their nose despite their face! And their prices are usually higher than the places that accept credit cards, so its just a different business model! I think their cash only strategy is probably a simple way out of paying those annoying income taxes.