Is This A Normal Dealer Practice?

Gator5220

I've never been to a coin dealer before, so I decided to call some of the dealers in the Birmingham, AL area (2 hours away) for their store hours for a visit tomorrow. I'm talking to one of the dealers, and he starts telling me that cash is the preferred method of payment for dealers, and inferred that I will receive a better deal on my purchase with cash. I asked him if he accepted debit cards, and he said he does not accept debit or credit cards.

So, does he prefer cash since it offers the buyer (me) limited protection? Or, does he prefer cash because he saves on overhead since he doesn't have to pay merchant fees to the credit card companies?

Also, does anybody have any suggestions for reputable dealers in the B'ham area? Or do you have any other general advice to share before I head over tomorrow?

ER

No.

kieferscoins

What?

Cameron Kiefer

FatMan

Can "normal" really be put in a sentence directly in front of "dealer".....I don't think so.

Gator5220

Sorry, accidentally posted before I was finished. Edited it at first post.

K6AZ

Gator, I've sent this thread to a couple of people in that area. They should be able to help you.

By the way, welcome to the forum.

Gator5220

<< <i>Gator, I've sent this thread to a couple of people in that area. They should be able to help you.

By the way, welcome to the forum. >>



Thanks for all your help.

TheRaven

I would say sure they prefer cash, who doesn't but if you are talking about dropping enough cash they will take the cards.

Some of it could be he just does not know you so.....

fullerfun4

The dealer doesn't want to have to declare the sales for income tax purposes. If you're going to buy anything, be sure you know what you're getting. Try not to "impulse " buy. Ask if he has a return policy or will but it back if you want to return it or sell it back in the future. If it is a fair deal he should agree to buy it back for a certain percentage of the sale's price.

DaveG

Gator:

Many coin dealers are small businesses, so cash is usually most appreciated, with checks next and plastic (debit or credit) last. The larger dealers shouldn't have any problem taking plastic, although you'll probably lose the "cash discount."

You might want to send a pm to Dahlonega (and/or Fatman) as they live down your way (or might know who lives closer to you) and might be able to recommend a few dealers.

XpipedreamR

I wouldn't say this is a general rule by any stretch of the imagination. I've never heard of it. I have heard of dealers offering a better price for cash purchases of certain items, especially bullion, though.

Certainly, some merchants of all types have chosen not to accept credit cards.

CarlWohlforth

Many times margins are very small in the coin biz. I will often cover shipping costs if a buyer pays by check rather than PayPal. The %2-%3 PayPal and Credit Card companies charge for each transaction really hurts. Some small business owners prefer cash to checks if they are doing transactions off the books. It is not legal to do tranactions off the books as far as I know.

FC57Coins

Gator - the two better known coin shops in Birmingham are Southerncoin and Doug's - if you need directions, send me a PM.

Frank

DUIGUY

It has bin my experience that a dealer will sell for less when cash is offered. Just made a purchase last week. dealer said 3800.00 if credit card, 3650.00 if cash.

Merc

Hi Gator5220,

I can't help you with your question, but I am a Florida gator too. I graduated from UF in 2004. Now I'm living up north where the weather is not too friendly to a gator.

Gator5220

<< <i>Hi Gator5220,

I can't help you with your question, but I am a Florida gator too. I graduated from UF in 2004. Now I'm living up north where the weather is not too friendly to a gator. >>



I know what you mean. I live in Alabama now, and the climate is not very hospitable to Gators here, either.

mr3holesinone

I tend to agree with fullerfun4. Sounds like he's looking for the opportunity to evade some income taxes. Probably a good thing for him if you are not an IRS agent, lol.

I know I wouldn't want to carry around a few thousand for a purchase. Take your check book and have the phone number of your bank with you. If you have references from other dealers take their business cards or phone numbers.

I wouldn't think it would be that big of a deal.

mrearlygold

Probably a good idea to NOT have that Florida sweatshirt on when visiting in Alabamba.

Tom

LeeG

Heres the link to the PCGS Authorized Dealer "Search" Page:

Search For PCGS Authorized Dealers


Good Luck, Lee

Deadhorse

As stated above, margins are thin and credit cards often make them too thin. Locally, I almost always write a check and that is their preference. Large cash transactions, 10K or above require reporting to the IRS while checks can be any amount without reporting being required.

Many shops simply will not accept credit cards.

If you are from out of town or they don't know you, then checks obviously carry a risk for the dealer so I can see the desire to do a cash deal. That doesn't always mean he is doing a deal off the books.