UPDATED: Cash payment for vendors?

Yes, exactly what @rachel l. Photo. said.

I would say no to that if it were me. Even if they aren't doing it because of taxes, I would want that confirmation through a credit card or check to say that I paid.

@Wendy C Tell me more about this not being allowed to pass on credit card charges to customers. Two of my vendors have a line item in the contract that state credit card processing fee. Is that not allowed?

I chose to pay by check for both vendors, but it always rubs me the wrong way when vendors charge me a fee to use a credit card (I also do not go to gas stations that charge me more to use a CC)

Sketchy AF.

Tax evasion is a no-no in my book. As a CPA, this would concern me greatly and I would still be paying with a CC, discount or not.

I also probably would not discuss how I'm paying people "under the table" on a public internet forum.

I've heard of discounts for early payment, or even for cash payments and EFT (because it protects them from credit card fraud). But tax-free sounds a little dodgy to me.

That's definitely tax evasion. Please don't do that, it means you're helping them break the law.

Some like cash because they avoid the drama of having a check bounce or a credit card dispute because you weren't satisfied. There's always crazy customers out there, and nothing better than cash on hand I suppose. On the other hand, I will be paying by check because it's like having an additional receipt in case anything happens.