Cashonly

Cashonly refers to businesses or transactions that exclusively accept physical currency, or cash, as payment. This means they do not accept credit cards, debit cards, checks, or any other form of electronic payment. The reasons for a business operating on a cashonly basis can vary. Some may do so to avoid transaction fees associated with electronic payments, which can be a significant cost for small businesses. Others might choose cashonly to simplify their accounting or to maintain a lower profile for tax purposes.

Operating as a cashonly business can present certain advantages and disadvantages. For customers, it offers a way to track spending more directly and can be preferred by individuals who are unbanked or prefer to avoid digital trails. For businesses, it can lead to immediate cash flow and potentially reduce the risk of chargebacks. However, it also increases the risk of theft or loss of physical money, requires more effort in handling, counting, and depositing cash, and can limit the customer base to those who have cash readily available.

In some jurisdictions, there are legal protections in place to prevent businesses from refusing cash payments, aiming to ensure access to goods and services for all consumers. However, the prevalence of cashonly businesses is generally declining as digital payment technologies become more widespread and convenient for both consumers and merchants.