Businesses ditch credit and debit, shift to cash-only to avoid fees

First at Five: Cash is King

The Black Spoon Bistro in North Sydney, N.S., is doing away with accepting credit cards or debit. The business made the switch to cash only on Wednesday.

“We're just trying to save some money and reduce costs. Why wouldn’t we entertain a way to save some money here or there,” said owner Mike Black.

Stores that accept credit cards pay a fee to banks and credit card companies.

One expert believes that’s one of the reasons grocery bills at some locations continues to climb.

“The vast majority of Canadians do use credit to pay for food, and many of them don't have a choice these days,” said Sylvain Charlebois, Dalhousie University food professor and researcher.

In October, businesses in Canada got the greenlight to pass credit card fees onto customers. It’s a decision that isn't sitting well with most consumers.

And while inflation may be declining, experts feel it could be a while before Canadians see any relief on their grocery bills.

“We believe the month of February was probably the worst, so we're into the month of March now, and prices are still going up, but not as quickly as in February,” said Charlebois.

Still, Charlebois says it will be at least late into the summer before we see a break, or at least prices stabilize.

Back at the Bistro, owner Mike Black says he had no choice but to switch to cash only to keep the doors open and costs down for his customers.

“I feel like it's a step backwards in the world we're living in, but people are only going to take so much and then stop coming,” said Black.

On March 8, the heads of Canada's largest grocery store chains are being summoned before Parliament to testify about high food prices.