Is it silly to not take credit cards? Or serious business…
We got this message via Twitter recently, and the whole story is longer than 140 characters:
“I love you @missionpie, but the fact that you guys don’t accept credit cards is silly. Why did you stopped [sic] using @square? Cc @postmates”
Silly? We think not. Our choice to not accept credit cards is an example of the seriousness we bring to decisions about how and where to spend Mission Pie revenue. Quite simply, we believe a greater investment in our employee benefits and compensation is a better use of Mission Pie’s resources than investing in credit cards fees.
Last year, this is what we accomplished for Mission Pie employee benefits: We doubled the paid vacation, achieved 100% participation in our health care expense reimbursement program, and increased enrollment in our 401k plan and health insurance by 40%. If we had siphoned off $25,000 for credit card fees, Mission Pie would not have been able to increase all of these commitments.
We understand that with our “cash or check only, please” policy, we will occasionally startle and even frustrate a customer. We might lose some sales, and get an occasional uncollectable check. Many people have gotten accustomed to traveling without any cash or a checkbook, relying entirely on debit and credit cards. But many others, including a significant number of our customers, have caught on to fact that the 3% charge on credit sales does nothing to support the local economy. In the parlance of the day, spending business revenue on credit card fees does nothing to support the 99% in our community.
Once again, we couldn’t sustain these commitments without our customers’ loyalty and thoughtfulness about how and where you spend your money. One of our primary goals is to make good, healthful, tasty food accessible at everyday prices – our average transaction is $7. Another is to pay our staff well and provide them with meaningful benefits. Your willingness to carry a little bit of cash helps us toward those goals every day.
POSTED BY missionpie ON March 28, 2012 IN Banana Cream Pie.
April 07, 2012 at 10:01 am, Pam said:
Yea for you! A well treated staff makes for a successful business!
My first visit to SF is in May and I hope to visit your restaurant. Look forward to a delicious slice of pie!
April 13, 2012 at 10:36 pm, Joey said:
I love Mission Pie and think it’s great how much you care about your employees! More businesses should take note of your efforts to support the local workforce.
April 14, 2012 at 1:21 am, soychicka said:
While I understand that you’d rather invest in your employees than pay fees to credit card companies, what you fail to consider is that that some of us would be willing to cover those costs in order to enjoy the added convenience, but more importantly, the security of not having to carry cash.
Yes, those fees do go outside the community. Yes, they feed the coffers of the 1%. But I’d rather drop an extra $.21 on a slice of pie, even if it’s going to a large multinational, than lose the $53 left over from the money in my wallet after I walk out of your shop to a local thug who saw me take cash out of the nearby ATM as a result of your policy.
So know that when you say “spending business revenue on credit card fees does nothing to support the 99% in our community,” you’re really only considering the community contained within your four walls – ignoring the increased risk of carrying cash on the safety and well-being of your patrons after they leave your establishment. And if investing in a cultural shift that helps to decrease the rate of violent crime on the streets of the Mission isn’t an investment in the community, I don’t know what is.
April 21, 2012 at 6:38 pm, candy security said:
getting mugged once a year is still cheaper than what you pay in credit card fees each year. who the thug?
June 14, 2012 at 6:10 am, Violeta said:
I completely understand about the necessity to feel safe and secure, especially when carrying hard cash and items of value. If carrying cash is an inconvenience, then why not carry a checkbook?
I carry my checkbook (a slim one almost all the time) for local, community transactions. I never been mugged of my checkbook and no one has shown interest, but have had fraudulent charges ($9,000) on my credit card (and luckily my bank rejected that charge). But point being that there are two options, cash and check, which is great.
And yes, corporate banks are the bigger thugs.
June 23, 2012 at 9:55 pm, LM said:
It makes me sad (honestly) to hear that there are people who are so afraid of getting mugged that they refuse to carry cash.
April 16, 2012 at 3:53 pm, jacs said:
Perhaps people who want to ‘buy local’ should understand the cost of each credit card transaction on that local business.
I keep cash in my wallet for local shops and save the credit card for large-chain businesses which pay a smaller percentage for each transaction.
Keep on doing what works for you, Mission Pie!
April 16, 2012 at 6:07 pm, scgal said:
Agree with soychicka 100%. I’d rather pay the extra money rather than take the chance of getting mugged because I’m carrying cash. But it’s your business, so I’m sure it matters little what I think. Best of luck to you.
April 24, 2012 at 6:40 am, Joanna said:
I love this!!!! I am hoping this is what we do in our stores. Stand up for principle!!!
April 24, 2012 at 1:17 pm, mndshft said:
I do also understand your dedication to your employees, however dedication to your customer is equally as important as they go hand in hand.
Why not serve both of your customer groups. Provide cash customers with the lower price and allow those of us who do not carry around cash to pay the added extra because we choose to pay with our cards. Advertise your products this way, I think it is a great way to show your customers how much you actually pay in order to process a credit card.
I would argue that you have plenty of other fixed costs of “doing business” that you are paying for rather than investing that money into your employees, why did you choose to pay those costs?
June 09, 2012 at 4:44 am, cds said:
> Merchant service agreements (to process credit cards) generally do not allow vendors to have a cash discount. The price has to be the same in order to get the credit card service.
I find it bizarre that people think carrying some cash with them is a security risk. I always have a bit of cash with me. I also shop at farmer’s markets – which generally require cash (though that is changing) Is it really that hard to have $10 on you?
April 24, 2012 at 3:06 pm, Richard Boettner said:
I love the idea very much. When I was younger merchants actually gave a discount for using cash equal to the fee on credit card but then credit card companies claimed it was discriminating and put a stop to that. You are right in the savings by not accepting credit cards and people never think about it because the cost is just included in the product. Thank You for not accepting credit cards, or debit.
May 02, 2012 at 10:43 pm, Jon said:
While I think it’s great that you support your staff, I the reasoning has a bit of spin.
1. Yes, people are used to carrying debit cards. Customers from outside of your hood may not know to bring cash and will probably be unwilling to hunt for an ATM just buy a slice of pie and cup of coffee they have to pour themselves.
2. Many people show up in groups and the uncomfortable “hey they only take cash conversation” has to take place – especially on a date.
3. Many other vendors in the Mission (even El Farolito’s!) takes debit or CC’s.
4. And yes, by personal experience, I have been there with a group, took everybody’s order and had to come back only with coffee and tea because I didn’t have cash for food. We decided to forego the pies rather than just split one slice among us.
5. The 2.5 – 3% you’re saving isn’t quite enough to really make a massive difference in employee benefits especially if you consider business lost from not accepting debit/cc’s.
6. Most businesses get around this with a minimum charge of $10. I was just a small family Indian restaurant that had a 1/4th of the customer volume of Mission Pie and they instituted a minimum charge of $7.95 *and* they’re prices were slightly more than what you’d expect – but the food is hand crafted, uses local ingredients, and 100% worth the extra price – as Mission Pie is. But now, I don’t see you guys ever raising prices without accepting CC’s/debit.
May 17, 2012 at 11:49 pm, Terese said:
Good for you… many more stores are doing this and I hope the idea continues to spread.
I make it a point to always have cash on hand and even if a store takes credit cards I use the cash.
When I’m making a fairly large purchase ($50 or $60) it sometimes surprises the cashier.
May 19, 2012 at 7:03 pm, Evan said:
3% is certainly a cost worth considering, but at least it reasonable for the value added. You know what is really an unfair payment to large corporate overlords? atm fees.
June 24, 2012 at 8:59 pm, Gypsy said:
How are we to change being ruled by corporations if we are unwilling to support a local business? I travel all over this country, and indeed the world, and my experience has been that if you product is good customers will adjust.
Mugging? Lived in SF most of my life. Never let fear decide where to go or what to carry.
Congratulations for thinking of your employees and producing a product that will bring many clients back out of respect for your humanity and your delicious pies!
July 21, 2012 at 5:29 pm, iconoclastic said:
@soychicka
On the topic of being mugged: if fear of mugging is such a great concern to you, you may want to consider what will happen if you’re ever mugged by the wrong person AND do not have cash to give them. Plenty of unpleasant stories abound. In the world of fearful paranoia I would argue that constantly carrying around a bit of cash to satiate muggers is probably “safer” than having no cash at all. Also, from stats I’ve seen around it seems that carrying an iphone, ipad Macbook etc. is much more likely to get your targeted…
August 17, 2012 at 8:37 pm, Rob said:
You say: “Quite simply, we believe a greater investment in our employee benefits and compensation is a better use of Mission Pie’s resources than investing in credit cards fees.”
Here’s the problem in your logic.
1) This assumes that accepting credit cards would have no impact on sales, and therefore would not increase revenue. You are only considering the fees (decrease revenue) and not considering the additional business allowed by accepting credit cards (increase revenue).
2) Credit card fees and employee benefits are not an “investment,” but rather an ongoing cost of business. You could say that you would rather “invest” in employee benefits than “invest” in silverware, heating, rent, etc. The problem is that all these things, as well as accepting credit cards, are valued by customers and can have a net positive effect on your total resources to “invest” in various components of the business.
Anyways, I like your pie, but the only thing dumber than your no credit card policy is your explanation of the policy posted above.