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That may be the case for some gas stations but it is hardly the case for the vast majority of them. The majority of them are run by law abiding citizens who want to follow the law. They want no legal trouble.

I am Indian too, with a father that owned and ran a gas station. (My dad's shop was among the top gas-volume stations in America during his time, I forget exactly how much, but he had a few trophies from the company for it).

They preferred cash during his time because the 2-3% charge was a significant dent in margins. When credit cards started becoming popular, dealers still did not want to take it. So the company encouraged dealers to accept it by promising to refund the charges for a time.

I don't dispute that cheating like what you described happens. I dispute the implication that cheating the IRS is why most businesses prefer cash instead of credit.




> The majority of them are run by law abiding citizens who want to follow the law.

What’s your basis for this?

Logically, it seems to fit that the reason cash is preferred is for the illegal aspect of tax dodging/money laundering. Because the numbers don’t add up otherwise.

It’s great that your family is honorable and did the right thing, but it’s just an anecdote, like OP’s. But it doesn’t explain why so many businesses would be able to stay in business doing so.


That the IRS is not overwhelmingly prosecuting this type of crime.

What's the basis for the converse?

What numbers don't add up?


My reasoning is that cash yields lower profits due to reduced purchases, higher insurance cost, higher crime risk.

There doesn’t seem a reasonable reason to be cash only since, even though credit has a 3% hit or whatever, people spend more with credit.

There’s a need for money laundering and that is much easier with cash only businesses.




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