Nail salons have become ubiquitous in cities and suburbs across the United States. It’s easy to find a place to get a manicure or pedicure, with nail salons situated in strip malls, shopping centers, and standalone storefronts. However, when you go to pay for your nail services, you might notice that many salons have a strict cash only policy. Why is this the case? There are a few major reasons that nail salons tend to be cash businesses.
Lowering Taxable Income
One of the biggest reasons that nail salons prefer cash is that it can help them lower their taxable income. Salons may fail to report a portion of their cash transactions, meaning that income is not counted when calculating taxes. Credit card payments, on the other hand, leave an electronic trail that makes it much harder to underreport income.
For small business owners in the nail industry, who often operate on thin profit margins, being able to avoid taxes on some income can be the difference between being profitable or not. Some estimate that 20-50% of nail salon income goes unreported to tax authorities.
Credit Card Fees
Business owners also cite the fees charged by credit card companies as a big reason for only accepting cash. Companies like Visa and Mastercard charge a Merchant Discount Rate, usually 1-3% of each transaction, for payment processing services. On a $40 manicure, a 2% charge would equal 80 cents taken off the top. When margins are tight, losing 2% on every transaction really adds up.
With thousands of customers per year, a busy nail salon could end up paying tens of thousands in credit card processing fees annually. These fees eat into profits, so avoiding them by sticking to cash makes financial sense for small nail shops.
Passing on Savings
The savings realized from lower taxes and no credit card fees mean nail salons can keep their prices lower, which benefits cash-paying customers. A manicure costs $10 rather than $12, because the salon doesn’t have to cover the overhead of accepting cards. This competitive pricing attracts more customers who see the value.
Keep Transactions Simple
A cash-based operation also keeps things simple for nail salons. Employees don’t have to be trained on processing credit card transactions. Salons don’t have to purchase, set up, and maintain card readers. And there is no waiting for deposits to post or dealing with chargebacks.
Customers paying with exact change or small bills means the salons don’t have to manage large amounts of cash on-site either. Keeping things simple allows them to focus on providing nail services.
Lack of Banking Relationships
Some nail salons are cash only because the owners don’t have business banking relationships established to accept electronic payments. New small business owners may have a harder time securing a business account, especially if they are recent immigrants with a limited US credit history.
Opening a merchant services account to accept credit cards requires a business banking account. Without that core account, it is impossible to accept cards. All transactions have to be in cash.
Cultural Factors
Within the Vietnamese community, who make up an estimated 80% of California’s nail industry workforce, cash is king. It’s the norm to operate in an all-cash fashion both in Vietnam and in Vietnamese diaspora communities. Carrying on that custom here provides a sense of familiarity.
What About Tipping?
Does paying in cash mean you should tip your nail technician in cash too? The general consensus is yes. Handing a cash tip directly to your tech ensures they receive that extra money themselves. Otherwise, there is a chance that tips left on cards may end up distributed among all staff or kept by management.
Some customers choose to pay for their service on a card to collect rewards points or miles, then leave the tip in cash. This allows the tip to go straight to the person providing the service.
Is Carrying Cash Safe?
Patrons who worry about carrying large amounts of cash to nail salons do have options. Some salons keep an ATM on site that you can use to withdraw cash if needed. Others may accept credit cards with advance notice, since they can prepare for the processing fees. You can also look for nail salons that do take credit cards, which tend to be larger chains.
Taking basic safety precautions like not flashing your entire wallet at the register, hiding your PIN at the ATM, and keeping your purse close will prevent most issues when paying with cash at salons.
Are Prices Posted?
Reputable nail salons will have a clear price list posted so customers know exactly what services cost. Sketchy salons may try to overcharge if prices aren’t displayed. Remember that cash transactions make it harder to dispute overcharges after the fact.
Repeat customers will come to learn the general pricing at their regular salon. But don’t be afraid to ask for a price beforehand if unsure, especially for add-on services like polish changes.
Do They Accept Other Payment Methods?
Just because a nail salon is cash only does not necessarily mean they won’t accept other forms of payment. Many are open to taking Venmo, PayPal, Zelle or other digital wallet services. They see these direct bank transfers as different from credit card processing fees.
Salons that cater to younger customers are more likely to take these mobile and online payments. However, some older nail technicians may not be familiar with payment apps, so don’t assume they will take them.
Is a Cash Discount Offered?
To incentivize cash payments, some salons will provide a small discount if you pay in cash. For example, a Gel manicure might be $35 with credit card but $32 with cash. Just like with cash-only pricing, customers benefit from the salon passing on some of their savings.
Do They Handle Large Bills?
Try to avoid paying for your $40 nail service with a $100 bill. Nail salons often don’t keep large amounts of cash on hand to make change. Paying smaller bills and exact change is best. If you only have a large bill, ask first before paying to see if they can make change.
Is a Receipt Available?
Make sure to get a receipt for your cash payment. Even handwritten is fine. This gives you documentation if there are any issues with the services. You also need a receipt if filing an insurance claim for reimbursement of medical pedicures.
Do They Report Income Accurately?
Choosing a salon that reports all income and pays taxes is the ethical choice. Look for nail shops that operate transparently, take credit cards, provide receipts, and don’t request cash only. These are signs they likely report income properly.
Check Reviews
Reviews on sites like Yelp can give clues about a nail salon’s business practices. Complaints about being overcharged or pressured to pay cash may indicate issues. Positive reviews mentioning honest pricing are a good sign.
Is Tipping Expected?
You don’t have to tip at nail salons, but it is customary to leave 15-20% for good service. Leaving a tip in cash allows the technician to receive it fully. If paying by card, you can ask that your tip be given in cash.
Talk to Your Nail Tech
Having an open conversation with your nail technician can provide insight into why a salon only takes cash. They will let you know the best way to pay. Building a relationship with your tech means they understand your preferences.
How Much Cash to Bring?
Most basic manicures and pedicures will cost $25 to $45, depending on the salon and location. Bring enough cash to cover the service cost plus 20% tip. Know the prices of any add-ons you want like polish changes or paraffin wax. It’s better to have a few extra dollars than not enough.
Are Debit Cards Accepted?
Sometimes nail salons that are cash only will still take debit cards. Unlike credit cards, debit card transactions don’t incur processing fees. Paying with debit acts like an instant cash transaction for the business, so salons may permit it even though they don’t take credit cards.
Ask for Exceptions
If you really prefer not to pay cash, some nail salons will make exceptions for special circumstances. For example, if you are getting married soon and having a bridal pampering day with a large group, they may be willing to accept credit cards.
It never hurts to explain your situation and politely ask if they can accommodate credit card payment just for your visit. At best they will agree, at worst they will politely decline.
Plan Ahead
Don’t get caught off guard by a cash only policy. Call salons ahead of time if possible and ask what forms of payment they accept. That way you can plan to bring enough cash for your visit.
Some salon websites or review pages will note that they are cash only. Checking online can prevent an awkward cash-less surprise at the register.
Ask for an ATM
If you arrive at a cash only salon without enough cash, ask them if they have an ATM on site. Many will have a machine so customers can easily get cash right there rather than having to find an ATM elsewhere.
Keep in mind ATM fees range from $2 to $5 per transaction, on top of what your bank may charge you. But having to pay an ATM fee is better than not being able to pay at all.
Go to a Bank First
To avoid ATM fees, simply swing by your bank’s branch and withdraw cash before your nail appointment. That way you’ll have exact change and smaller bills for paying.
Plan to make the trip to the bank shortly before your scheduled time, so you don’t end up carrying large amounts of cash around all day.
Check Your Wallet in Advance
Take a look in your wallet the day before your nail appointment. Count how much cash you have on hand. That way if you need to get more, you have time to stop by the ATM or bank.
You don’t want to show up at the salon ready for your pedicure, only to realize you don’t have enough cash in your wallet to actually pay for it.
Bring a Friend to Split Costs
If you are getting matching manicures or pedicures with a friend, you can split the cash payments. Just communicate ahead of time and agree to each pay for your own service. This cuts down on how much cash you need upfront.
Some salons may even offer small discounts when two or more friends come in together, saving you both a bit of money.
Leave a Small Deposit
Ask if you can leave a deposit first and come back with remaining cash later. Most nail salons will work with regular customers on payment arrangements like this.
They just need to cover their costs upfront. Leaving a $20 deposit toward your $40 total bill then getting the remaining $20 in cash later can work.
Get Cash Back with Purchase
Make a small debit card purchase at a nearby store and request cash back to have funds for your nail service. Most retailers allow getting $20 to $100 back over your purchase amount.
Buy a drink or snack, then get cash back to use at the salon. This works better than finding a standalone ATM.
Put Cash aside at Home
Stash some small bills and change in a jar at home strictly for beauty purposes, like nail services. Add to it whenever you have spare cash. Let it build up over time so it’s there when you need it.
Having a dedicated “beauty cash” fund means you won’t get stuck without money at cash only salons again.
Check Your Local Area
Some neighborhoods will have more cash only nail salons than others. Areas with large immigrant populations or small business economies tend to be more cash based. Affluent suburbs may have more nail salons accepting credit cards.
Getting your nails done close to home reduces the hassle of having to go to the ATM or bank first for cash.
Use an Online Deal Site
Booking discounted gift certificates for nail salons through sites like Groupon or LivingSocial has benefits. First, you already paid online, so you don’t need cash. Second, some deals include tip in the price.
The certificates are essentially prepaid vouchers you redeem at the salon. It makes things easier when salons only take cash.
Book High-End Salons
Upscale nail salons located inside luxury department stores, high-rise offices, or trendy neighborhoods almost always accept credit cards. Their affluent clientele expect the convenience of paying by card.
If you prefer card payment, book at a premium nail bar with individual service rooms and lavish foot massages.
Use Mobile Payment Apps
Apps like Apple Pay, Google Pay, and Samsung Pay allow you to pay with your smartphone, even at cash only businesses. As long as the nail salon has a mobile card reader, these payments can work.
Call ahead to see if mobile pay is an option before relying solely on your device.
Book On Demand Services
On demand beauty providers that come to your home, office, or hotel room will always accept credit cards through their app payment system. With on demand manicures and pedicures, cash is never an issue.
Schedule an appointment through an on demand site or app. Services show up ready with mobile card readers to process your payment.
Should You Avoid Cash Only Salons?
Cash only nail salons are not inherently bad. Many are law-abiding small businesses simply following cultural norms. However, cash only operations do have a higher potential for shady practices.
If cleanliness, safety, and fair pricing are priorities, you may feel more comfortable in salons accepting credit cards and digital payments.
Conclusion
Cash only policies are standard at many nail salons for cultural and financial reasons. As a customer, being prepared with ample cash ensures you can still enjoy manicures and pedicures from your favorite technician. Keep an open dialogue to understand the cash preference, bring enough funds, or look into salons with modern payment options.