Can't you use debit cards for that? My local grocery doesn't take CC, but they take Debit card. Between CC, Debit Card & ACH (Automatic electronic bill pay), I rarely write checks even, let alone pay cash.

Actually, bsrharma, you need to read between what I was saying.

Lot's of small businesses (not to stereotype, but the ones I see typically are asian), give "special" pricing for cash transaction. I don't know the exact rationale, but I would surmise that's because there technically wouldn't be a trace of the transaction has taken place from an income perspective.

Of course,this isn't probably available to you if you're not of the same ethnicity. And even if you are, you sometimes have to ask multiple times as part of bargaining. IE: "How much would it be if I paid cash? Same price? Are you sure? Really, seriously, how much would it be if I pay cash? No, I mean I understand it would be more "convenient" for you, and I wouldn't mind, but how much would it be???, etc,etc,etc,etc".

Also, some places do it to avoid convience charges of credit cards/debit cards. Techincally, it's against CC company policies. There are rules from the CC companies that says a merchant can't offer a good/service at discounted price if they pay cash (it's part of the deal when you sign up to take a CC card). Also it is not typically allowed that a merchant says "minimum $$$$ charge on a credit card". Techincally, if you hated the merchant, you could call the CC company and complain. But merchants still do it, and the CC company is lax in enforcing their own rules.