Post by Ella.
I don’t know but it sure is good. We sat down for lunch at Zazu in Punta del Este. I’m thinking, oh good, I’ll try some Uruguayan dish I haven’t yet had. When the waiter started pointing out all the Peruvian dishes, I couldn’t resist. Nor could Grubb.
We see these signs everywhere in Uruguay. Pay by card, get a discount! The opposite of Argentina.
Why would they want to give you a discount for using a credit card? The merchant has to pay for the privilege. If inflation is an issue, then paying by card, unless it is in a foreign currency, is also bad for the merchant, since they don’t get the money right away. If theft, either outright holdups, or pilfering by the staff, is an issue then I can see it. Though 20+ percent off seems like a lot. Quite an incentive to use your credit card.
I suspect it has to do with taxes. Foreigners don’t have to pay VAT but can only get out of it if paying with an international credit card. So it’s not really a discount. But only a theory. Since we see these signs everywhere, including taxis, there must be some benefit.
I asked perplexity: In Uruguay, discounts are provided to foreign credit card users as part of a government initiative to attract tourists, particularly from neighboring countries like Argentina and Brazil. This policy includes automatic VAT (Value Added Tax) deductions on services such as hotel accommodations, restaurant bills, and car rentals when using an international credit or debit card. The VAT reduction is designed to make Uruguay a more appealing destination for tourists, who might otherwise choose to vacation in their own countries due to economic considerations[1][2].
Confirms what I suspected. Thanks for that.