Local bakery's cash-only rule finally made sense after I added up their fees

Last month I watched a small bakery in Austin lose a $60 order because the customer only had a card and they don't take payments under $10 in cash. The owner told me that card processors eat about 3% plus a flat fee, so on small tickets she basically breaks even or loses money. I ran the numbers on my own side gig selling BBQ sauces at farmers markets, and switching to cash for anything under $8 saved me around $40 a week in processing costs. Has anyone else found a threshold that works for their small business, or do you just eat the fees to keep customers happy?

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the_cameron16d ago

Damn, that's rough but makes total sense honestly.