Your points are no less valid given what I'm about to write, I only write it because it's nice to have an accurate picture. The guy at the food truck is likely using Square to process his transactions, like 90% of them do. If so, it's a flat 2.75%. It's still a cost, and they are certainly better for having your cash but honestly, unless a business owner is an idiot, they're not paying 5%. In fact, I know a lot about this stuff and since I know you are opening a business, I'd be glad to consult with you via PM. There are right and wrong things to do. Businesses processing at 5% tend to be ones that make the mistake of getting in to a POS system that mandates a particular payment processing company. Guess what? Now you are fucked because they'll steadily jack up your rates and unless you are willing to divest yourself from the $20k POS system you put in, you're not going anywhere.

It sucks. The credit card processing industry is a very nefarious one with a lot of crooks and criminals walking around in suits and ties, signing people up for 3-5 year contracts and terminal leases at $300 a month for something that can buy for $50.

I purchase most things with my card and here is how I handle the scenarios you raise:

1. I'm an exorbitant tipper, much to my wife's chagrin. Honestly I tip 25-35% on average.

2. There are many situations when paying with a CC is actually faster than cash. Grocery stores come to mind etc. It's amazing how bad people are at making change these days, I guess we can blame CC for that.

3. Homeless -I've taken to carrying $5 Gift cards that I hand out to the homeless in our area. There's one spot near a Starbucks where they are often panhandling. They seem glad for it when I give it to them and I know they're not buying drugs with it.

But your point isn't lost on me. Cash rules if you are a business and I think it's cool of you to accommodate that.