FAQ

Why should I pay with cash?
Paying with cash helps small businesses avoid credit card processing fees, which can run as high as 4% per transaction. It keeps money in the community, supporting local businesses instead of padding the profits of big banks and card networks. And at stores participating in the Alphabet City Cash Collective, it’s a win-win—you’ll save money, too!

Do small businesses really lose money from credit card fees?
Yes, small businesses pay a significant portion of their revenue—sometimes many thousands of dollars a year—in credit card processing fees. For businesses with slim profit margins, these fees can make a big difference.

Isn’t using a credit card more convenient?
While credit cards are convenient, using cash offers tangible benefits: discounts at participating businesses, keeping your money in the local economy, and helping reduce costs for the businesses you care about.

Isn’t it better to get credit card rewards?
While credit card rewards might seem appealing, they come at a cost—and someone else is paying for them. The fees merchants pay to credit card companies to cover those rewards often get passed down to all customers in the form of higher prices. Additionally, these programs are funded in part by the interest and fees paid by others, often trapping lower-income households in debt they can’t afford. By paying with cash, you’re keeping more money in your community and supporting fairer pricing for everyone.

Why should small businesses offer discounts for cash?
By encouraging cash payments, businesses can avoid high credit card fees and keep more of their revenue. Offering a small discount incentivizes customers to pay with cash and can ultimately boost a business’s bottom line.

What if I don’t carry cash?
Consider becoming a member of the Lower East Side People’s Federal Credit Union, located right here in the neighborhood. It exists to serve the community with affordable, inclusive financial services. Members enjoy free ATM access at its branches and through a network of free ATMs around the community. Learn more and join here: lespeoples.org.

How does this initiative challenge the dominance of credit card networks?
Credit card companies dominate our payment systems, taking a cut of nearly every transaction and raking in staggering profits. In the first quarter of 2024, Visa’s profit margin reached an astonishing 57%—profits that bear little resemblance to the actual cost of processing transactions. This brazen exploitation, enabled by monopoly power, drives up costs for both consumers and businesses. By promoting cash payments, we’re reclaiming economic power and taking a stand for a fairer, more equitable system.

Isn’t cash less secure than using cards?
While it’s true cash can be lost or stolen, digital payment systems have their own risks, including fraud, data breaches, and surveillance. Cash provides a private, no-strings-attached way to pay.

How does this help the local economy?
By keeping more money in the hands of small businesses, we strengthen our local economy. Businesses can reinvest in their operations, hire locally, and contribute more to the community.