I am quite bothered by this because of the possibilities of identity theft, in addition to the issues that others have brought up about those who live in poverty and/or do not have bank accounts.
The other thing is that I had a terribly unpleasant exchange with a hotel worker once a few years ago. I do not have a credit card. I have saved for everything and paid cash rather than pay with a card and incur debt. So I made a reservation using my mom's card, and when I got there, they told me I had to produce the card. I was quite upset and told them it was mom's. They were not going to let me stay there, even though I had cash for the deposit. They said they don't accept cash. No hotel does. Things like this are becoming more and more common, so it seems I have no choice but to get a credit card... The first time in my life yesterday I accepted the pre-approved card from my bank. I hate being pushed into doing things I don't want to do, but society has changed and I have no choice.
As well, I have my deep concerns about the things tango mentioned with regard to the mark required to buy and sell. It seems when credit cards first came out, that was a concern. Same when debit cards came out. Now, though, it is even more concerning when we are doing away with the cash alternative.
In the context of a hotel it makes some sense to require a credit card, given that if a guest does extensive damage to a room they want more than a couple of hundred dollars in cash as a deposit. I imagine also that hotels are coming under pressure not to allow unknown people to book rooms because of vaguely defined security issues (because, you know, organised crime gangs and terrorist groups couldn't possibly get a credit card in a false name) and so don't want to deal with cash.
I can also see a concern about businesses dealing with large sums of cash not wanting to be vulnerable to the risk of someone coming by to relieve them of their cash. Although credit cards carry a fee they make a lot of the issues of handling cash go away. With contactless cards becoming ever-more popular it's hugely convenient to just touch a card to the reader and not have to do anything more, especially since it means you don't end up with a growing pocketful of change. There are even services out there that will automatically round up your purchase to the nearest dollar and put the change into a savings account for you, the intention being that you slowly save up a little nest egg without even noticing the amounts involved.
That said, one coffee shop I like to use has a stage that always happens when paying by card, namely the bit where it asks you for a tip. In a coffee shop I find that quite awkward because I don't really see why someone deserves a 15-20% tip for the monumental task of pouring coffee into a cup and handing me the cup. But at the same time clicking the "no tip" button is obviously designed to make the customer feel like a cheapskate. I often wonder whether the "add a tip" stage ends up taking just as long as waiting for your change.
From the perspective of a business owner cards make a lot of sense because you don't have to deal with cash, don't have to worry about a float, staff with sticky fingers can't lift your cash from the till and you can't be robbed for your cash. Your money automatically goes into your bank account, usually within a day or two (and some providers have an option to credit it instantly, for an extra fee, if you really can't wait until tomorrow for it). From the perspective of a business owner it also makes marketing easier because you can see your repeat customers and possibly tailor promotions to them (the kind that says "hey, you've come here six times in three days, why not stop by again and we'll give you something on us?"). The main advantages I see from the perspective of a business owner are either tax evasion (a payment in cash can be denied) and convenience in the context when the business owner is a customer (e.g. when you want to go to the coffee shop next door for lunch and it's easier to just pay cash).
I can easily see a hotel being concerned that if 50 guests show up and place a $200 cash deposit each, the hotel has to have $10,000 in cash floating around ready to return to customers when they leave without damaging the rooms or emptying the minibar, they have to check the room as the guest checks out to make sure the deposit can be returned and then have no means of levying a charge if they find out something is wrong. And of course all the time they are vulnerable to someone coming in and helping themselves, aided by the threats of violence, to that $10,000 that the hotel then has to replace.
