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Amid inflation, some local businesses also struggle with credit card fees

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Americans are increasingly ditching cash in favor of credit cards.

“It seems like I’m the only one who uses cash," said Karen Lawson, Cambria resident.

Many people like Catalina Restrepo understand the shift, which some attribute to the desire to accrue credit card points.

“I get it that sometimes credit card tells you the first year you don't have any interest and then you get points and all that,” she added.

However, for local business owners like Tammi Price, accepting credit card payments comes with a steep cost every month.

"Depending on how much processing you use, the bill could be anywhere from $1,000 to $2,000," Price explained.

Price has owned Village Cafe for the last 15 years. She faced challenges during the pandemic and is now grappling with inflation, telling me she’s had to adjust her prices multiple times.

“Eggs were $30 a case. They went up as high as $90, even higher," Price said. "So businesses have to raise their prices accordingly.”

As food prices continued to rise, Price felt she had no choice but to pass her credit card fees on to her customers.

“I hate to have to put that on my customers," Price said.

But she’s not the only one. Restrepo, who owns a hair salon in the Bay Area, recently switched to cash-only sales.

“I realized I was paying up to $700 sometimes a month on credit card fees," Restrepo says.

People like Anthony Wood from Arroyo Grande say they’ve been seeing more businesses taking the same action.

“I can totally understand when you have a business owner that can't afford, you know, increases in prices or doesn't want to pass on those costs," Wood said.

Down the street, Sidewalk Café has invested in technologies like the Clover register. It helps streamline transactions and manage credit card fees. Despite the $3,000 startup cost, the owner believes it's a worthwhile investment.

Price says implementing a small charge for non-cash payments has led to some customer dissatisfaction, yet it's a necessary step for her to cope with rising costs.

“Small mom-and-pop places like this are really struggling. I think a lot more, way more than the bigger places, for sure," Price said.

Under a new state bill starting July 1, it will be illegal for businesses to advertise prices that don't include all required fees. For more details on this legislation, click here.