At a 1.5% fee after 30 transactions $100 becomes $63.55. In the US I think CC fees are actually closer to 3%. Businesses also get charged exorbitant cash handling fees by banks for lodging cash or for getting money handlers to remove cash from the premises. Large businesses will also consider the time cost of employees handling cash drawer changes and as well as the risk of underpaid employees stealing from the register. His logic works well in a circular economy of small local businesses but so long as all your vendors are major corporations, then the savings in cash vs credit cards are not that significant.