I came across this article from the Des Moines Business Record titled "Credit cards not accepted." The article profiles businesses in the Des Moines area that don't accept credit cards and whether that decision has affected their profits.

This got me to thinking about whether I am less likely to shop at cash-only businesses. Overall the answer is yes, but how much less likely depends on how unique the thing is that I'm buying, how many competitors a merchant has, and, to some extent, price.

For example, if a gas station is cash only, I'm not dropping by. I like to slide my credit card at the pump, get the gas and get moving. There are a zillion gas stations to choose from, so I'm not planning on choosing any that force me to go into their store and stand in line. I also think most supermarkets are similar in quality, so the ability to use my card could affect my decision on where to shop.

Also, if I'm going to be making a more sizable purchase, I'm less likely to stop at a store that only accepts cash. Can you imagine doing holiday shopping at a bunch of clothes retailers that only accept cash? I don't want to walk around with a couple of hundred dollars or more in my wallet so that I can pay cash for everything, so a cash-only store would be likely to lose my business.

It's easiest to get away with cash-only if you're business is unique. If you offer original items that can't be purchased elsewhere, or you offer a service that is only needed occasionally, it's easier to do this. Also, if you're a deep discounter that offers prices way below others, this can work, too. (I have a store close to me that does this; I hate having to pay with cash, but sometimes the savings are too good not to go there.)

I'll use the businesses profiled in the article above to illustrate my points, if I have any. The businesses mentioned are a consignment shop, a tailor/cleaner, an original art store and a restaurant.

In my mind, the consigment shop and art store can easily get away with not accepting cards; if customers want what they have, they'll come up with cash, because it is not stuff they can get just anywhere. I'm not going to say "No, I'll only buy that ceramic alligator I've been hunting for for 15 years if I can pay with a credit card" or "I've never seen such unique earrings like these in my life, if only I could put the $30 on my credit card, I'd buy them."

The tailor/cleaner is not as unique, although there are fewer tailors than cleaners, so depending on what service a customer needs, cash-only might not drive them away.

A restaurant is a much trickier proposition. To get away with not accepting credit cards, you either have to be really, really, really good or have little competition, such as a restaurant in a small town. Being successful in the restaurant game is difficult enough without giving yourself that competitive disadvantage.

So, how about you? Are you as likely to frequent a business that only accepts cash or checks as you are to go where credit cards are accepted?